Hiring Boom @ ASA is over...
03-14-2008, 06:48 PM
#21
Gets Weekends Off
Joined APC: Mar 2006
Position: SkyWest Capt.
Posts: 2,963
03-14-2008, 06:54 PM
#22
Gets Weekends Off
Joined APC: Mar 2006
Position: SkyWest Capt.
Posts: 2,963
ASA's contract with DAL is for 80% of DCI flying out of Atlanta. And this was a 15 year contract. Not sure of the actual contract language, as I do not have this in front of me.
If DAL decides to go against this contract, it'll cost them the amount that they sold ASA to SKW for. I think it was around 420 million?
Nevertheless. . .the next few months should be interesting.
If DAL decides to go against this contract, it'll cost them the amount that they sold ASA to SKW for. I think it was around 420 million?
Nevertheless. . .the next few months should be interesting.
SKW Inc also got the same %age based departure guarantee in SLC.
Jerry's a smart man.
Last edited by JetJock16; 03-14-2008 at 06:59 PM.
03-14-2008, 07:04 PM
#23
Moderator
Joined APC: Dec 2007
Position: DAL 330
Posts: 6,997
ASA's contract with DAL is for 80% of DCI flying out of Atlanta. And this was a 15 year contract. Not sure of the actual contract language, as I do not have this in front of me.
If DAL decides to go against this contract, it'll cost them the amount that they sold ASA to SKW for. I think it was around 420 million?
Nevertheless. . .the next few months should be interesting.
If DAL decides to go against this contract, it'll cost them the amount that they sold ASA to SKW for. I think it was around 420 million?
Nevertheless. . .the next few months should be interesting.
Scoop
03-14-2008, 07:08 PM
#24
Looking for a laugh
Joined APC: Feb 2008
Posts: 4,099
03-14-2008, 07:45 PM
#25
Looking for a laugh
Joined APC: Feb 2008
Posts: 4,099
Here are a few gems from SKW Inc last Annual report
Pg 7
In addition, if Delta or United, or one or more other code-share partners we may secure in the future, experience a prolonged decline in passenger load or are harmed by low ticket prices or high fuel prices, they will likely seek to renegotiate their code-share agreements with SkyWest Airlines and ASA or cancel flights in order to reduce their costs.
In addition, if Delta or United, or one or more other code-share partners we may secure in the future, experience a prolonged decline in passenger load or are harmed by low ticket prices or high fuel prices, they will likely seek to renegotiate their code-share agreements with SkyWest Airlines and ASA or cancel flights in order to reduce their costs.
Pg 10
The SkyWest Airlines Delta Connection Agreement is subject to early termination in various circumstances including:
The SkyWest Airlines Delta Connection Agreement is subject to early termination in various circumstances including:
if SkyWest Airlines or Delta commits a material breach of the SkyWest Airlines Delta Connection Agreement, subject to 30 days notice and cure rights;
if SkyWest Airlines fails to conduct all flight operations and maintain all aircraft under the SkyWest Airlines Delta Connection Agreement in compliance in all material respects with applicable government regulations;
if SkyWest Airlines fails to satisfy certain performance and safety requirements;
if, under certain circumstances, Delta has a right to terminate the ASA Delta Connection Agreement;
Pg 11
The ASA Delta Connection Agreement is subject to early termination in various circumstances including:
The ASA Delta Connection Agreement is subject to early termination in various circumstances including:
if ASA or Delta commits a material breach of the ASADelta Connection Agreement, subject to 30 days notice and cure rights;
if ASA fails to conduct all flight operations and maintain all aircraft under the ASADelta Connection Agreement in compliance in all material respects with applicable government regulations;
if ASA fails to satisfy certain performance and safety requirements;
if, under certain circumstances, Delta has a right to terminate the SkyWest Airlines Delta Connection Agreement;
Pg 16
Risks Related to Our Operations
We are highly dependent on Delta and United.
If any of our code-share agreements are terminated pursuant to the terms of those agreements, due to the bankruptcy and restructuring proceedings of Delta, or otherwise, we would be significantly impacted
and likely would not have an immediate source of revenue or earnings to offset such loss. A termination of any of these agreements would have a material adverse effect on our financial condition, operating revenues and net income unless we are able to enter into satisfactory substitute arrangements for the utilization of the affected aircraft by other code-share partners, or, alternatively, obtain the airport facilities and gates and make the other arrangements necessary to fly as an independent airline.
We are highly dependent on Delta and United.
If any of our code-share agreements are terminated pursuant to the terms of those agreements, due to the bankruptcy and restructuring proceedings of Delta, or otherwise, we would be significantly impacted
and likely would not have an immediate source of revenue or earnings to offset such loss. A termination of any of these agreements would have a material adverse effect on our financial condition, operating revenues and net income unless we are able to enter into satisfactory substitute arrangements for the utilization of the affected aircraft by other code-share partners, or, alternatively, obtain the airport facilities and gates and make the other arrangements necessary to fly as an independent airline.
Pg 17
The current terms of the SkyWest, SkyWest Airlines and ASA Delta Connection Agreements are subject to certain early termination provisions. Deltas termination rights include cross-termination rights (meaning that a breach by SkyWest Airlines or ASA of its Delta Connection Agreement could, under certain circumstances, permit Delta to terminate both Delta Connection Agreements), the right to terminate each of the agreements upon the occurrence of certain force majeure events (including certain labor-related events) that prevent SkyWest Airlines or ASA from performance for certain periods and the right to terminate each of the agreements if SkyWest Airlines or ASA, as applicable, fails to maintain competitive base rate costs, subject to certain rights of SkyWest Airlines to take corrective action to reimburse Delta for lost revenues.
There's a reason Delta has a whole flock of lawyers on retainer. Jerry may be a smart man, but no contract in the world is "iron clad." The question is, How far is Delta willing to go? In the long run, it may be cheaper to break the contracts. Plus, it would be years before all the court proceedings are over and Delta would have to pay.
03-14-2008, 08:02 PM
#26
Gets Weekends Off
Joined APC: Apr 2007
Position: A320
Posts: 1,316
I know times may be a lot different than in the past but ASA has done a pretty good job of getting through the hard times. Been around since 79 and since then ASA has never furloughed a pilot and the only year they lost money was their first year in business. Now this is just something that I have heard many times from the guys in management and it comes from people that don't speak of rumors. If they could make it through 9/11 without a problem, I have a lot of confidence that they will make it though this "Fuel crisis". Just some comforting words for the worried. We as the pilot group have some control over the situation but not enough to worry about. Go out have fun and be safe and try not to think about it too much.
03-14-2008, 09:03 PM
#27
Sit reserve to get lucky
Joined APC: Mar 2005
Position: is down range clear?
Posts: 155
did anyone think that perhaps they didn't have enough students to fill up two separate classes? maybe they are combining the two because they could only get 10 in each class and don't want to waste resources. we still need pilots especially with all the summer flying that is suppose to come in.
03-15-2008, 04:50 AM
#29
Gets Weekends Off
Joined APC: Mar 2006
Position: CRJ Captain
Posts: 1,406
maybe this has something to do with it. More RJ pull backs??
http://www.businessweek.com/ap/finan.../D8VDDMLO0.htm
http://www.businessweek.com/ap/finan.../D8VDDMLO0.htm
50% of the time, I am right all the time
03-15-2008, 06:11 AM
#30
Gets Weekends Off
Joined APC: Mar 2006
Position: SkyWest Capt.
Posts: 2,963
There's a reason Delta has a whole flock of lawyers on retainer. Jerry may be a smart man, but no contract in the world is "iron clad." The question is, How far is Delta willing to go? In the long run, it may be cheaper to break the contracts. Plus, it would be years before all the court proceedings are over and Delta would have to pay.
Not one of us said the contract was "Iron Clad" and even I stated:
................... but with fuel prices as erratic as they are it might be cheaper to lose the money and cancel flights. Only they can do the math but something tells me that they are going to do everything they can to get paid, so I’d expect the majority of the cuts from here on to effect their other code share partners.
Last edited by JetJock16; 03-15-2008 at 06:30 AM.
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