Airsupport

ok. so this was posted on our message board and no one seems to know what the deal is. Is skywest and asa expected to lose that many planes by the time their contracts are up?



The 10-k this is from can be found here

http://investing.businessweek.com/re...&formType=10-K

I am just curious because I haven't heard about this and you would think it would be big news. I know they are supposed to be retiring the brasilias but it seems like an unbelievable amount of planes being cut.

i know skywest and asa have 900's for delta but for some reason it doesn't seperate them out like it did for pinnacle.

acl65pilot

That is correct. That is what the agreement is for. Now there will be amendments to that.

In effect that is why I left.

Airsupport

why does it say immediatly prior before the contract ends? does that mean that they will lose all the planes at once, several a year, or all at the very end? It just seems to be to inordinate amount of planes. I mean from 141 to 16 for ASA and 82 to 37 for skywest?

acl65pilot

See what you are asking is "trade secret" stuff. That is in the last 11 pages of the DCI/ASA/SKW Air Service agreement that was signed. You are not going to see that unless you sign one big ole thick NDA, and therefore we cannot talk about that. Not trying to be a jerk, but that is big stuff that will land you in court.

This table was published at the end of last year in the 10-K. What this means is that at the time of the DCI Ar Service contract expiration in 2020.
We can assume all that we want, but go look at the DCI contract. It is on the SEC website. It is a good read. Fact is that you did not get the aircraft all at once, and I would be floored if they left all at once, but this is what the last day of that contract has in terms of service.

Now, there will be amendments to that agreement. ASA's second hurdle is next fall when they get to DOS+5 on that contract. You need to be in the bottom two as it pertains to total cost. I do not see you or SKW being there. When that happens there are certain things that are spelled out and some that are not that will happen. Most likely you will see DAL tell your company that they will not be paying the leases on the jets. It will come under the responsibility of the service provider (your airline) to pay the leases to fly the jets. They will not just be transferred leases from the DAL name to ASA or SKW. What that means is that they will be more expensive. SKW Inc may balk, and say no way.
The catch 22 to all of that is then if you do not have a jet to perform the contract you are in breach and DAL can void it. (Just my assumptions after reading the public copy, but in the end that is why I would not make EV my home. I had great seniority and good pay, but I say 10 more years tops before the bottom started falling out)

selcal

That may be the case, however Skyw Inc. has 80% of the flying in ATL and I believe in SLC, so unless they really reduce DCI in those areas, then Skyw Inc. will have many more planes than the minimum on the agreement.

rickair7777

I believe it's all at or close to the end for the SKW airplanes. Presumably they will come to some agreement before then, rather then just letting all those aircraft fall out of service.

selcal

And you have seen it and signed the 'big ole thick NDA'?

acl65pilot

For sake of this discussion, I have not signed a NDA concerning this. When people give you advice you take it. When they tell you a little story about these types of agreements you listen.

Point is that, no one should discuss the specifics of this on here. Fact is that these are trade secrets, and that was the point. It does not matter who signed it, if you get close to the truth some may ask where you heard it from. That is all.

Ergo, me to talkie

acl65pilot

I have been hearing for a few years that SKW is leaving ATL. Seems that as they leave others come in.

acl65pilot

Simply put, what this illustrates is that DCI is a third party operator and their existence is at the pleasure of DAL and those that effect this type of agreement.
I say leave if and when you can.

Start connecting the dots on when these expire and a/c development.