Where, oh where will the DL Dorkjets go?

[ATL2CDG]

http://biz.yahoo.com/prnews/040406/cltu078_1.html


Press Release Source: Delta Connection

Delta Connection Terminates Atlantic Coast Airlines Agreement
Tuesday April 6, 4:57 pm ET
Delta Connection Carrier Comair Replaces Operations in the Northeast


ATLANTA, April 6 /PRNewswire-FirstCall/ -- Delta Connection will terminate its agreement with Atlantic Coast Airlines (ACA), effective October 2004.

"The business models of the two companies are diverging, and the termination of the connection carrier agreement will allow each to take the path best suited for their company's future," said Fred Buttrell, president and chief executive officer, Delta Connection, Inc. "In addition, the termination will also ensure that we do not conflict with the Delta Air Lines pilot working agreement."

To prepare for the termination, aircraft flown by ACA will move from Boston and New York -- JFK to Cincinnati, which will consolidate ACA operations in Cincinnati by July 2004. Additionally, Delta Connection carrier Comair will move aircraft to the Northeast markets to replace the routes currently operated by ACA.

"Reallocating aircraft between the Northeast and Cincinnati helps us to prepare for the upcoming transition," said Buttrell. "The aircraft reallocation will also increase the size of Delta Connection regional jet aircraft operating in Boston markets from 32 to 50 seats."

ACA has participated in the Delta Connection program since 1999, and began flying as a partner in August 2000. Delta Connection and ACA are currently working out the details and specific timetable, but we anticipate a smooth operational transition.

The 30 FRJ 328 aircraft currently flown by ACA are expected to remain in the Delta Connection carrier program, but will be operated by another carrier. Delta Connection is working to finalize the specifics of the program transition.

Delta Connection carriers include Delta's (NYSE: DAL - News) wholly owned subsidiaries Atlantic Southeast Airlines and Comair, along with Chautauqua Airlines and SkyWest Airlines, and codeshare partner in California American Eagle. Delta Connection is an industry leader in the regional jet market operating more than 400 regional jets throughout North America. For more information, please visit delta.com .

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Source: Delta Connection

 

[Timebuilder]

What does this mean? The end of ACA?

I'm a little out of the loop on regionals.

 

[ATL2CDG]

Timebuilder:

ACA is becoming 'Independence Air' based out of IAD with its CRJ200 fleet and soon-to-be acquired A319s and A320s. United announced yesterday the agreement on the dissolution of the ACA contract; Delta followed with this announcement today.

With ACA/Indy Air taking on Airbi, it's contract with DL had to be terminated as the DL mainline pilot scope restrictions state that no DCI carrier may operate aircraft with greater than 70 seats, even if those aircraft don't operate in the Delta system.

With this announcement, the speculation that was mumured seemed true. However, the question is now, 'Who will get the ~30 D328Jets?' Comair and ASA seem like prime candidates, but with Delta wanting to save money, I wouldn't doubt to think for a minute that Mesa may soon be 'gracing' *cough* ramp 3 in ATL. ATL has a lot of routes that are too short and light for the CRJ200s... but the same could be said for CVG.

As such, time will tell. Even though I'd love to see ASA for the growth, they are maintanence hogs and ASA's already getting 25 CRJs in 2005. Oh, well...

Any other gossip/conjecture to be had?

TysV

PS - Just found this on the company intranet:

ACA currently operates 30 FRJ 328 jets for Delta Connection, and these aircraft are expected to remain in the Delta system. DCI has been in discussion with various regional operators, including discussions with Skyway Airlines, a wholly owned regional carrier subsidiary of Midwest Airlines, based in Milwaukee, to operate the aircraft. Skyway Airlines was the FRJ 328 launch customer, and is currently a certificated operator flying 10 FRJ 328 aircraft for Midwest Airlines.

 

[Timebuilder]

Thanks for the info. In the past hour, I got a PM about the Independence Air thing. At least there won't be an entire company hitting the skids.

I wonder what will be done to keep the experienced crews with those 30 airplanes...

 

[FurloughedAgain]

Skyway

Skyway in talks to assume Delta Connection service
Skyway Airlines Inc., the regional air carrier subsidiary of Oak Creek-based Midwest Air Group Inc., said Tuesday that it is in talks to assume the operations of a Delta Connection Inc.'s fleet of Fairchild jet aircraft that are now operated by Atlantic Coast Airlines Holdings Inc.

Delta Air Lines Inc., Atlanta, and Dulles, Va.-based Atlantic Coast said in separate statements Tuesday that the two companies would terminate their partnership in October 2004 because Atlantic Coast is seeking to become an independent low-cost airline.

In its statement, Delta said the 30-aircraft fleet now flown by Atlantic Coast is expected to remain in the Delta Connection carrier program under the operation of another carrier. The airline said it is working to finalize the specifics of the program transition.

Separately, Atlantic Coast said it plans to evaluate its options for the fleet of Fairchild 328JETs. Those options include transferring leases on some or all of the aircraft to Delta, which Atlantic Coast has the right to do under its agreement with Delta.

Skyway Airlines said in a statement that its experience with its existing fleet of Fairchild jets puts the airline "in a unique position to grow our operations by assuming responsibility for operating Delta Connection's 328 fleet," said Jim Rankin, president and chief executive officer of Skyway Airlines. "We are hopeful we can come to mutually satisfactory terms."

Rankin said the company would not comment any further on negotiations until an agreement is reached or talks are terminated.

Skyway operates as Midwest Connect serving its parent company, Midwest Airlines Inc. Rankin said any relationship with Delta would remain independent of its partnership with Midwest.

"Skyway has been evaluating opportunities to operate aircraft for other airlines, which would constitute a shift in Skyway's business model," Rankin said. "These discussion represent the first step toward such a shift."

 

[atpcliff]

Hi!

The Delta/ACA press release said that Delta will take over the leases, and fly them out of Cincy.

Cliff
DTW

 

[urflyingme?!]

Who owns Midwest Air?
Mesa?
I have no clue just a question, not a conspiracy theory

 

[Tim47SIP]

Skyway

They will get the Do Jets. When ACA is gone, Skyway is in. Just like that. For the life of me, I can not understand why Delta wants 32 seat aircraft that cost way more than they are worth to operate. I guess they are stuck with the airframes. Also, Skyway is probably way cheaper than ACA. With Comair taking up the slack, who is going to take up the slack for Comair?

Talked with a Comair CPT today and he told me the ATL domicile is out, and the ACA aircraft goes to Skyway. Comair will migrate north east. What ever that means. That is good for ASA so we can migrate South west. I think we are going to have a good year.

 

[blueridge71]

ACA's contract with Delta contains a put clause that says that if Delta cancels without cause, then Delta assumes the leases on the Dojets. In this case, ACA has not violated the contract so we are expecting that Delta will take the airplanes (30 of 33 anyway).

I'd say that the smart money is on Skyway to take them.

The transition is still up in the air. ACA is hoping for a slow transition of 18 months or so to avoid furloughs.

Comair will probably assume our BOS flying since the ACA BOS base is slated to close July 1.