Category Archives: Delta Connection

ExpressJet expands its relationship with United and American, drops Delta

Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N307PQ (msn 15307) ATL (Jay Selman). Image: 403371.

ExpressJet Airlines, a wholly-owned subsidiary of SkyWest, Inc. has announced the initiation of a clearly defined long-term strategy:

  •  Long-term agreement secured with United Airlines. As part of this plan, ExpressJet has secured a new, five-year extension of its United Airlines ERJ 145 contract, effective January 1, 2018 through Dec. 31, 2022. The new agreement enhances ExpressJet’s United partnership and provides long-term stability to its model. It also provides ExpressJet pilots with continued access to United’s Career Pathway Program. Financial terms of the agreement were not disclosed.
  •  Early termination of Delta CPA. Additionally, ExpressJet and Delta Air Lines mutually agreed to initiate the wind-down of its remaining dual-class flying agreement under the Delta Connection brand, allowing ExpressJet opportunities to place aircraft with other partners. The agreement, which includes 28 CRJ900s and 33 CRJ700s, was previously scheduled to expire beginning in 2019. The aircraft financed by Delta, including all CRJ900s, will be returned to Delta beginning in fourth quarter 2017; ExpressJet expects to transition other aircraft previously operated under its Delta agreement to other major partners throughout 2018.
  •  Agreement with American for eight additional CRJ700s. As part of this realignment, ExpressJet has secured an agreement with American Airlines to transition eight additional CRJ700s to its American Eagle operation. That transition is expected to take place during second quarter 2018.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N307PQ (msn 15307) ATL (Jay Selman). Image: 403371.

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SkyWest’s ExpressJet to retire its CRJ200 fleet over the next year

ExpressJet to retire its CRJ200 fleet in late 2017

SkyWest, Inc. has announced additional fleet transitions and contract updates designed to reduce SkyWest’s long-term fleet risk and enhance its ability to respond to changing partner needs.

Specifically, SkyWest’s ExpressJet operation expects to transition to flying primarily dual-class aircraft in its CRJ operation by removing its Bombardier CRJ200 aircraft from service over the next year.

The removal of the CRJ200 aircraft reduces ExpressJet’s future required investment in its 50-seat fleet and is expected to improve the airline’s operating efficiency by eliminating an aircraft type from its platform.

SkyWest also announced ExpressJet and American Airlines have agreed to place 12 dual-class CRJ700s into service under a multi-year term. These CRJ700s had been scheduled to be removed from service under a previously-disclosed early lease return arrangement.

Additionally, SkyWest and Bombardier entered into a termination agreement covering Bombardier’s residual value guarantee (“RVG”) agreements on 76 CRJ200 aircraft owned by SkyWest Airlines and ExpressJet. Bombardier agreed to pay SkyWest $90 million by January 2017 along with certain other consideration in exchange for the release. Both the required sale of each aircraft and the cost to SkyWest of returning the aircraft to mid-time condition were points of risk and uncertainty for SkyWest that this termination agreement eliminates.

As a result of the expectation to remove ExpressJet CRJ200s from service and the Bombardier RVG termination agreement, SkyWest is evaluating its total 50-seat CRJ200 fleet and related long-lived assets for impairment in Q4 2016. SkyWest currently anticipates it will record a non-cash impairment charge in Q4 2016 estimated to be in the range of $440 million to $490 million (pre-tax) on its CRJ200 aircraft and other 50-seat aircraft assets, net of the $90 million in cash proceeds from the Bombardier termination agreement.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ200 (CL-600-2B19) N923EV (msn 7826) ATL (Jay Selman). Image: 403333.

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Compass Airlines amends its CBA for First Officer first-year pilot pay

Delta Connection-Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) LAX (Michael B. Ing). Image: 930227.

Compass Airlines (Minneapolis/St. Paul) (American Eagle and Delta Connection) has issued this statement about increasing the First Officer first-year pay in order to attract new pilots:
Compass logo-1Compass Airlines is pleased to announce that the Collective Bargaining Agreement (CBA) for its pilot group has been amended to increase first year, First Officer pay to $35.81 per flight hour. An additional highlight of the amended CBA is the provision of four paid hotel stays per month for commuting pilots. The amendment also gives Compass the flexibility to quickly raise first year pay in response to market conditions. The agreement was reached as part of a voluntary mediated settlement of a number of outstanding issues between Compass Airlines and its pilot group, represented by the Air Line Pilots Association (ALPA).

 

The amendments to the contract are effective immediately.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) departs from Los Angeles International Airport (LAX).

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Delta to start Los Angeles – Denver flights

Delta Connection-SkyWest Airlines Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) LAX (Michael B. Ing). Image: 929995.

Delta Air Lines (Atlanta) will launch five daily flights from Los Angeles International Airport to Denver International Airport beginning June 1, 2016.

In 2016, Delta will begin operating Boeing 717 aircraft on all Delta Shuttle flights between Los Angeles and San Francisco, increase to 10 daily flights to both New York-JFK and Seattle/Tacoma and add a third daily flight to Boston. Delta’s seat growth in Los Angeles has grown more than 99 percent since 2009, the most of any carrier.

Delta’s Los Angeles to Denver flights will be operated by Delta Connection carrier SkyWest Airlines (St. George) using two-class, 76-seat Bombardier CRJ900 aircraft.

Delta operates 160 peak-day departures to 60 destinations from Los Angeles.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) of SkyWest Airlines departs from LAX.

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SkyWest to operate 19 new Embraer 175s for Delta

Embraer 175 (Flt)(Embraer)(LR)

SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) today issued this statement:

SkyWest (red-blue) logo (LRW)

SkyWest, Inc. announced today that it has entered into a Capacity Purchase Agreement (CPA) with Delta Air Lines (Atlanta) to operate 19 new Embraer E175 dual-class regional jet aircraft. SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, Inc. (St. George) a wholly-owned subsidiary of SkyWest. The CPA is under terms and conditions similar to SkyWest’s existing Delta agreements.

Delta Connection logo

“SkyWest is a longtime Delta partner, and we’re pleased to advance our partnership with an additional aircraft type,” said Chip Childs, SkyWest, Inc. President. “As we continue to evolve our fleet mix, we look forward to continuing to deliver what our partners need through solid, reliable service.”

The aircraft will be flown in dual-class configuration of 76-seats, and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in August 2016, with all 19 aircraft being delivered by mid-2017.

In related news, Embraer and SkyWest, Inc. have signed a firm order for an additional 19 E175s jets. The aircraft will be flown by SkyWest Airlines, Inc. a wholly-owned subsidiary of SkyWest, under a Capacity Purchase Agreement (CPA) with Delta Air Lines. The transaction will be included in Embraer’s 2015 fourth-quarter backlog. Delivery of the first aircraft is expected for the third-quarter of 2016.

SkyWest Airlines currently operates the E175 for Alaska Airlines (Alaska SkyWest) and United Airlines (United Express).

Image: Embraer.

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Delta to connect its Seattle/Tacoma hub with Orange County

Delta Air Lines (Atlanta) will added Embraer 175 Delta Connection service (operated by Compass Airlines) between its Seattle/Tacoma hub and Orange County (John Wayne) starting on May 1, 2016.

The airline made this announcement:

Delta logo

Delta Air Lines’ hub at Seattle-Tacoma International Airport will continue to grow next spring with the launch of four daily flights to Orange County’s John Wayne Airport beginning May 1, 2016.

In all, Delta will launch service to ten destinations from Seattle/Tacoma between November 2015 and May 2016: Billings, Montana.; Boston; Cancun, Mexico; Edmonton, Alberta; Kona on Hawaii’s Big Island; Missoula, Montana; Orange County; Orlando; Pasco, Washington; and Victoria, British Columbia. Some service may be operated by Delta Connection carriers SkyWest Airlines and Compass Airlines.

Delta’s Seattle/Tacoma to Orange County flights will be operated by Delta Connection carrier Compass Airlines using Embraer 175 aircraft.

In other news, Delta will operate weekly Boeing 737-800 Cuban charters from Atlanta to Havana starting on April 2, 2016.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Compass Airlines’ Embraer ERJ 170-200LR (ERJ 175) N612CZ (msn 17000201) taxies to the runway at Seattle-Tacoma International Airport.

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Republic Airways Holdings disputes Delta’s complaint

Republic Airways Holdings (Shuttle America) (Indianapolis) has issued this statement disputing a reported lawsuit by Delta Air Lines (Atlanta) claiming the carrier failed to fly its full contracted schedule according to the Indianapolis Business Journal:

Republic Airways Holdings logo

Republic Airways Holdings Inc. has been made aware of a complaint filed by Delta. The Company has not been served and has not received the full complaint and therefore cannot comment further on the matter at this time. Republic can confirm that the Company is not in breach of any of its capacity purchase agreements with any of its mainline partners, including both Delta Connection Agreements.

Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines and Shuttle America, collectively called “the airlines.” The airlines operate a combined fleet of about 240 aircraft and offer scheduled passenger service with approximately 1,250 flights daily to about 100 cities in the U.S., Canada and the Caribbean through fixed-fee flights operated under our major airline partner brands of American Eagle, Delta Connection, United Express and US Airways Express. The airlines currently employ about 6,500 aviation professionals.

Copyright Photo: Keith Burton/AirlinersGallery.com. Shuttle America Embraer ERJ 170-200LR (ERJ 175) N202JQ (msn 17000240) in Delta Connection colors climbs away from Boston’s Logan International Airport.

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