It’s ‘Survivor’ for Delta carriers

CrippleHawk

Well-Known Member
For Delta Air Lines’ regional carriers, it’s survival of the fittest.
Atlanta-based Delta has been working to improve dismal on-time performance at some of its Delta Connection contract carriers, and it has seen some successes, including from Atlanta-based Atlantic Southeast Airlines. Meanwhile, it has eliminated other Delta Connection contracts, and more cuts could be in store.
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<!--startclickprintinclude--><!--begintext-->Delta plans to cut costs and consolidate regional operations after its pending merger with Northwest Airlines.
Between Delta and Northwest’s regional carriers, Delta Connection senior vice president Don Bornhorst said, “If you add everyone up together now you have nine. I think the right answer is going to be along the lines of seven or eight.”
The regional carriers that don’t make the cut have fewer backup plans, because major carriers across the industry have been shrinking schedules.
“For a long time it was a seller’s market for regional carriers —- there weren’t enough regional jets for the demand,” Bornhorst said. “We clearly are on the other side of that growth curve now and I would even argue that there’s too many regional jets.”
Delta has told its Connection carriers that the best performers will survive................................................
http://www.ajc.com/services/content/business/stories/2008/10/21/regionals.html
 

Trip7

Well-Known Member
This Spring will be interesting to say the least when the New Delta reveals its DCI plans...
 

surreal1221

Well-Known Member
At least the AJC isn't talking about ASA in a story similar to the ones they wrote about Mesa Air Group and Pinnacle.

Nevertheless - whatever. . .
 

ljg

Well-Known Member
Adil,

Let's hope for the best. Are you interested in getting back into the Operations side of things at all? Mesa employees are hard-working talented people; it sucks you're all getting caught up in Corporate spitball.
 

CrippleHawk

Well-Known Member
Adil,

Let's hope for the best. Are you interested in getting back into the Operations side of things at all? Mesa employees are hard-working talented people; it sucks you're all getting caught up in Corporate spitball.

Dunno yet but if anything does happen. I might, although I prefer to live in the Northern Virginia area. There are always jobs up here [we have Colgan HQ and Compass HQ (NWA subsidiary) here], so it can't be that bad. Plus There are a lot of mx jobs in Virginia. I just have to make the right decision. But if worst comes to worst. I'll move to Texas (I have family down there plus more opportunities). Just hope it does not come to that.
 

CamYZ125

Well-Known Member
Why would it affect you in IAD? Does MAG do MX on the ERJs for Delta in IAD? I see them in CLT often..
 

Trip7

Well-Known Member
Did anybody catch this:
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
 

H46Bubba

Well-Known Member
Did anybody catch this:
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
Yeah, RA's bringing in two wholly owned carriers that have really low operating costs due to two pretty junior pilot groups. Mesaba cleaned house during bankruptcy and of course Compass is pretty much brand spankin new. Yeah I wouldn't mention Comair and our very senior pilot group and hi operating costs with the word synergystic.:rolleyes: Whipsaw away!:panic:
 

Nick

Well-Known Member
Did anybody catch this:
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
They have been making subtle comments like that ever since this thing was announced. Here is the next one down that goes along with that:


Edward Bastian said:
It’s a work-in-process, so it hasn’t got that much attention. But between Compass and Mesaba there exists a holding company and they are actually already between those two carriers sharing functions, and we would expect that that would continue and would expand as times goes on.

It is absolutely correct. Mesaba and Compass, particularly Compass, have little infrastructure compared to some other contract lift providers.

There is discussion about how other companies have relatively long term contracts with the mainline but I believe that if the 'mothership' wants to change the terms of a contract then they will find a way and do what it takes to change it.

It is an unfortunate situation for the contractors because mainline has really figured it out and planned out a way to really wring any profit out of a contractor and keep it for themselves (this is smart on the part of mainline and it should be expected that they do this). Any large profit margin made at the contract company is wasted money on the part of mainline. Look no further than Air Wisconsin+United in the 90s and ExpressJet+Continental in the past four years. Excess contractor profit will not be tolerated. How will another XJT '04 type contract ever be negotiated again without bankruptcy section 1113 stuff changing and a new NMB? Even with improvements in that area it is an uphill battle.

So what they've done is created the ultimate cheap machine: Compass.

A company that has no ground handling whatsoever.

A company where 95% of the payroll is on the first year of longevity and less than a dozen are in their third year.

A company where the main bullet points of the contract was handed to them by mainline during bankruptcy while mainline threatened their own pilots with throwing out their contract if they didn't give up more scope to let some more larger contract lift in. Give up the pension, or let some DC-9 routes get given away...that was the give and take.

Northwest and Delta filed bankruptcy on the same day, 20 hours before bankruptcy laws changed the way they would have had to do things if they'd filed any later.

They have this figured out and pilots need to be unified and understand they have been pitted against each other but the joke is on them if they fall for it and hate each other for it.
 

H46Bubba

Well-Known Member
So what they've done is created the ultimate cheap machine: Compass.

A company that has no ground handling whatsoever.

A company where 95% of the payroll is on the first year of longevity and less than a dozen are in their third year.

A company where the main bullet points of the contract was handed to them by mainline during bankruptcy while mainline threatened their own pilots with throwing out their contract if they didn't give up more scope to let some more larger contract lift in. Give up the pension, or let some DC-9 routes get given away...that was the give and take.

Northwest and Delta filed bankruptcy on the same day, 20 hours before bankruptcy laws changed the way they would have had to do things if they'd filed any later.

They have this figured out and pilots need to be unified and understand they have been pitted against each other but the joke is on them if they fall for it and hate each other for it.
We've been told that we'll be joining you guys and Mesaba at MC Holdings. Managment has already began whacking away back office personnel and positions. We've been told that all three wholly owned will operate on the same operating system and all three will utilize the same crew scheduling, dispatch, and mx programs. How does Compass operate? How is your management structured?
 

Nick

Well-Known Member
Compass is like a shell.

There is nothing but airplanes, pilots, flight attendants, SOC, and a headquarters building with used furniture.
 

H46Bubba

Well-Known Member
Compass is like a shell.

There is nothing but airplanes, pilots, flight attendants, SOC, and a headquarters building with used furniture.
Wow! So MCHoldings pretty much is your management infrastructure. At least Mesaba has somewhat of the same infrastructure that we have. This is going to be a pain in the ass! I can see a lot of changes coming down the road for all of us.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Hey H46, nice mad dog, man!

Are you considering coming to "The Dark Side"(tm)? :) We've got snack mix!
 

H46Bubba

Well-Known Member
Hey H46, nice mad dog, man!

Are you considering coming to "The Dark Side"(tm)? :) We've got snack mix!
I've had some feelers out for jobs at the TOC for a couple months now, ever since I survived my first visit to the chopping block. I just made my second trip to the bock this month, so I'm thinking there's better job security converting to the "Dark Side"!
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Tell me what you need and who to address it to and consider your LOR completed brotha!

Wait... just a sec... You wouldn't be senior to me on the PPR list would you?
 

H46Bubba

Well-Known Member
Tell me what you need and who to address it to and consider your LOR completed brotha!

Wait... just a sec... You wouldn't be senior to me on the PPR list would you?
Thanks! I'll probably stick it out as long as I can...well at least a year(I hope!) since we just renewed our lease for the house. Once the DCC gets here, we'll should find out how much more we are going to get bent over!
No your 1998 still trumps my 2006 or if I came over, 2008 DOH.:rolleyes:
 
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