ASA's so called DCI contract

[kellwolf]

That's part of the reason why the recent rumor about Delta pressuring Comair to 'lead the way' with pay cuts bothers me.

Hadn't heard that. Comair gets beat into submission and goes for pay cuts. Suddenly ASA is no longer competitive and Delta threatens to pull (nay ANNOUNCES they are pulling) their flying. ASA frantically cuts wages in order to keep the flying, etc, etc. It's like something out of a nightmare. Sad thing is, it's plausible.

 

[surreal1221]

Bleh. . .:whatever:

I'm going expat at the soonest possible chance.

 

[mxflyer]

It's like something out of a nightmare. Sad thing is, it's plausible.

I agree, something about Delta makes me uneasy

 

[Cptnchia]

I agree, something about Delta makes me uneasy

As has been posted before, if you don't own your flying, but are just contracted to fly it, you will constantly be left out to twist in the wind. That's just the breaks.

 

[gtpilot]

Well, missed this in my first reading of the 2nd amendment in the 8K filing on 9/13/05(all the juicy details are redacted):

ASA fails to maintain a completion rate of [***] with respect to the Delta Connection Flights during any [***] months during any consecutive [***] month period, unless Delta fails to maintain a completion rate of [***] with respect to its domestic mainline operations during the same [***] months as ASA’s failures during the same [***] period. For purposes of this Agreement, (a) Delta Connection Flights operated with no revenue passengers or completed over [***] hours late shall be considered as not completed and (b) Disproportionate ATL Cancellations shall be excluded from ASA’s completion rate calculation;

and

i) ASA shall be scheduled to operate not less than [***] of all Delta Connection Program departures scheduled at Hartsfield-Jackson Atlanta International Airport (“Hartsfield”) and (ii) [***] ((i) and (ii) above, collectively, the “ATL Departure Percentages.”)

So if a company exec says it is 80%, it must be true! Guess we just don't get to know for sure!

 

[surreal1221]

Well, it's probably because the information wasn't intended for public use in the first place.

We've got bigger problems occuring at ASA right now than trying to find the ellusive 80% figure though man.

 

[Trip7]

Um, that's in there? If that's the case, then I wouldn't be so cocksure on any percentage. If they suddenly decide that ASA's pricing isn't competitive with other regionals, it's gone. We've already seen how much Delta likes to invoke tiny clauses in services agreements already this year.....

Hadn't heard that. Comair gets beat into submission and goes for pay cuts. Suddenly ASA is no longer competitive and Delta threatens to pull (nay ANNOUNCES they are pulling) their flying. ASA frantically cuts wages in order to keep the flying, etc, etc. It's like something out of a nightmare. Sad thing is, it's plausible.

Ok boys and girls lets break this down logically,

ASA is guaranteed to maintain its percentage of total Delta Connection flights that it has in 2007, so long as its bid for ADDITIONAL regional flying is competitive with other regional carriers.

Key word ADDITIONAL. The above does not mean Delta can pull flying from ASA anytime they feel like ASA is not cost competitive on current flying. The above means this:

If additional ATL flying comes up for bid that would dip ASA below 80% ASA gets the flying as long as the match the winning bidder's price. If they chose not to match it then the winning bidder gets the flying.

Two highly likely examples:

One:
Additional 900 flying up for bid that would drop ASA below 80%. PNCL is the winning bidder. By contract Delta has to allow ASA the opportunity to match the winning bid and take the flying.

Two:
New Q400 flying up for bid in ATL that would drop ASA below 80%. Colgan is the winning bidder. By contract Delta has to allow ASA the opportunity to match the winning bid and take the flying. If ASA refuses to match all bets are off.

 

[surreal1221]

That Aviation Management education is paying off now isn't it.

 

[H46Bubba]

That's part of the reason why the recent rumor about Delta pressuring Comair to 'lead the way' with pay cuts bothers me.

Where'd you hear that? Need to lay of the APC crack pipe! That was a necropost thread from when Comair took a pay freeze in 2005 to buy 35 ERJ-170's, which didn't happen due to the plunge into the Ch.11 pool with Delta. The MEC would burn this joint to the ground if management came looking for paycuts, especially after getting the shaft in Ch.11!

 

[gtpilot]

Where'd you hear that? Need to lay of the APC crack pipe! That was a necropost thread from when Comair took a pay freeze in 2005 to buy 35 ERJ-170's, which didn't happen due to the plunge into the Ch.11 pool with Delta. The MEC would burn this joint to the ground if management came looking for paycuts, especially after getting the shaft in Ch.11!

Heard from someone who heard from someone who apparently read the necropost! Glad to have that one debunked!

 

[H46Bubba]

Heard from someone who heard from someone who apparently read the necropost! Glad to have that one debunked!

Yeah with all the doom and floom predictions flowing out of this company one of the pilots thought it'd be cool to revive the post, to freak out the other Comair pilots.anic:anic: Unless you went to the first post and saw the post date, it looked like a new thread. You guys and SkyWest are fine. We're taking the brunt of DL's follies with MAG.

 

[kellwolf]

Marcus, what if Delta puts out an RFP on Republic's flying? That's an awful lot of flying. Then let's say Republic decides they'll cave and lower the rates to keep it. You've said already that by contract they have to offer it to ASA and see what they say. If ASA doesn't match it, then they're not competitive. Yet, if they had matched it, what would it be? ADDITIONAL FLYING FOR ASA. It's not necessarily new flying totally.

Trust me, I've been on the whipping end of Delta's contract shenianigans. Don't assume you're safe if you're at a regional. Actually, don't assume you're safe if you're in aviation.

 

[Trip7]

Marcus, what if Delta puts out an RFP on Republic's flying? That's an awful lot of flying. Then let's say Republic decides they'll cave and lower the rates to keep it. You've said already that by contract they have to offer it to ASA and see what they say. If ASA doesn't match it, then they're not competitive. Yet, if they had matched it, what would it be? ADDITIONAL FLYING FOR ASA. It's not necessarily new flying totally.

Trust me, I've been on the whipping end of Delta's contract shenianigans. Don't assume you're safe if you're at a regional. Actually, don't assume you're safe if you're in aviation.

All bets are off on the Republic flying as it already doesn't dip into the 80%.

I'm not assuming I'm safe at all. Management at ASA does not bid on flying unless it makes money. Thats why we dipped out of LA because XJET decided they'd like to have a place for 23 planes even if it meant losing money and underbid us.

I'm guessing shortly after the merger a RFP for Q400 flying out of ATL will be put into place. I'm not so sure if ASA will match whatever offer Colgan puts out there...

 

[surreal1221]

Doubt it. . .but the machine that is Atlanta Hartsfield very well may gobble them up pretty quickly.