Delta sues Republic

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10-07-2015, 09:09 AM

#21

121again

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Quote:

Originally Posted by Binksy

Delta said the EXACT same thing right before they bought Pinnacle. Plans change.

Also, the fact that RAH flies for the competition is an enticement to purchase them, not a drawback. If RAH files bankruptcy, and then United buys them, they can cancel the contracts with American and Delta and now those two legacies are scrambling to cover the lift that RAH previously provided. Plus United (or whoever buys them) gains a big chunk of pilots in a very competitive field.

I actually think you might be on to something. As soon as the first domino falls I could see most of the big regionals being absorbed virtually overnight as the others react. Not saying it will happen but it's one plausible scenario.

10-07-2015, 09:18 AM

#22

Bellanca

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Quote:

Originally Posted by A321

This is contract posturing to try to scare pilots. DON'T FALL FOR IT. You never know what's going on behind the scenes.

I don't feel one bit bad for Delta. You outsource and this is what you ask for. Anyone could have seen this coming.

And didn't delta recently extend the contracts for the 145s that were supposed to go away within the next year?

The majors are going to either ante up the money that regionals need to remain in operation or pull the flying in house.... those are the options.

10-07-2015, 09:40 AM

#23

PDTpilotXX

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Quote:

Originally Posted by 121again

They cannot fulfill their contracts with United and AA being owned by DAL.

10-07-2015, 09:53 AM

#24

eaglefly

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Quote:

Originally Posted by FEtoFO

I don't think it's about the money. Delta did not want republic to agree to additional United flying. The 1 million is nothing to delta.

Then they'll either settle or drag out a court case for years and then pay the piddly million plus legal fees. It really doesn't amount to much leverage, especially id RAH wants to split from Delta.

10-07-2015, 09:55 AM

#25

Binksy

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Quote:

Originally Posted by PDTpilotXX

They cannot fulfill their contracts with United and AA being owned by DAL.

Read back 5-6 posts. They won't have to. All they need to do is file bankruptcy and they can abandon those contracts. Then whoever buys them gets all their pilots and all their planes with a chance to renegotiate a super cheap bankruptcy contract.

10-07-2015, 09:55 AM

#26

Hou757

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I see RAH and Delta cancelling most if not all of their flying which in the long term helps Republic with staffing. Delta flying is farmed out again to others..

10-07-2015, 10:03 AM

#27

CBreezy

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Quote:

Originally Posted by Binksy

Bankruptcy isn't magic especially when dealing with too big to fail airlines. You think they don't have hands in pockets around the country to ensure they don't get gutted in bankruptcy? A RAH bankruptcy would hurt the pilots more than the major airlines. Also, why do you assume there would be a buyout? I'd be willing to bet if they do go into chapter 11, it'll be to back out of the pilot contract and abandon a major partner's CPA. If they go to a major and say we need more money, no bankruptcy judge would make a major airline pay more if they can get it cheaper elsewhere. It's not their fault RAH underbid.

10-07-2015, 10:09 AM

#28

iFlyRC

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Cockroaches and regionals are the only two things that will survive a nuclear war. Sorry but regionals are never going away.

10-07-2015, 10:12 AM

#29

Binksy

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Quote:

Originally Posted by CBreezy

Bankruptcy is magic for a regional carrier. IF, and I say IF, a major wanted to purchase RAH (or any other regional), all they need for them to do is file bankruptcy. This allows the regional carrier to shed their CPAs with the other major carrier(s) involved and the purchasing major can make them a wholly owned. (EXACTLY LIKE DELTA DID WITH PINNACLE/COLGAN/MESABA)

I am not assuming anyone will do that, or should. I am merely responding to people's comments that it could never happen because RAH flies for all 3 majors. That means nothing, zero, zilch. It actually might be appealing to whoever wants to purchase them because said purchase would then negatively effect the remaining 2 majors now scrambling to cover the lift RAH provided.

10-07-2015, 10:21 AM

#30

Bellanca

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Quote:

Originally Posted by Mercyful Fate

Delta had this card in their back pocket the whole time....Delta knew they couldn't cover that flying, and probably had the lawsuit drawn up a long time ago. All they had to do was sit back and wait.

Exactly what I'm thinking... 3-4 months ago they were extending contracts with rah, now the place is terrible and their performance sucks??? Nothing has really changed in the meantime, and they had to be planning this lawsuit even before extending the 145 contract. I don't feel bad for Delta... or any of the majors finding themselves in this predicament.