Category Archives: Delta Connection

Pinnacle Airlines Corporation prepares to exit Chapter 11 with new agreements, will phase out its 140 CRJ200s in the next 2-3 years

Pinnacle Airline Corporation (Pinnacle Airlines) (Memphis) today issued the following statement:

Pinnacle Airlines Corporation announced today that it and its wholly owned subsidiaries have entered into comprehensive agreements that, among other things, provide a path forward for the Company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. Under Pinnacle’s new business plan, the Company will transition its fleet to operate a fleet of 81 fuel-efficient, two-class regional jets for Delta Air Lines Inc.

The comprehensive agreements among Pinnacle, Delta, the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors’ Committee) in Pinnacle’s Chapter 11 cases include:

An amendment to the Company’s existing debtor-in-possession credit facility, to provide Pinnacle with $30 million of additional liquidity to support its continued operation through emergence from Chapter 11 and an additional $22 million to fund certain required payments to Pinnacle’s pilots under a Bridge Agreement and related employer taxes. The amendment would also extend the maturity date for the credit facility from April 1 to May 15, 2013.
Amendments to the existing operating agreements with Delta that form the basis of the new business plan. Pinnacle will receive Delta Connection’s next 40 Bombardier CRJ900 aircraft awarded, setting Pinnacle’s long-term fleet plan at 81 CRJ900 aircraft. The 40 additional CRJ900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle’s 140 Bombardier CRJ200 aircraft will be removed from operation over the next two to three years.
A Bridge Agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle’s pilots in conjunction with the recently negotiated letter of agreement between Pinnacle and ALPA.
A letter of agreement to amend Pinnacle’s collective bargaining agreement with the ALPA pilots. This letter of agreement and the Bridge Agreement are subject to ratification by the ALPA membership by Jan. 15, 2013.
A restructuring support agreement among Pinnacle, Delta and the Creditors’ Committee setting forth certain principal terms for a plan of reorganization to emerge from Chapter 11. The reorganization plan will provide for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corp. after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by February 15, 2013.

Pinnacle filed motions with the Bankruptcy Court seeking approval of the various components of the comprehensive agreements. All of the components of the comprehensive agreements are interdependent and are subject, among other things, to Court approval.

Copyright Photo: Fernandez Imaging. With the CRJ200s being retired, Pinnacle Airlines will concentrate on the larger CRJ900 in the future with its Delta Connection contract. Bombardier CRJ900 (CL-600-2D24) N176PQ (msn 15176) lands at Houston (Hobby).

Delta Connection-Pinnacle Airlines:

Pinnacle Airlines reaches a tentative agreement with its ALPA pilots, will increase its Delta Connection Bombardier CRJ900 fleet to 81 aircraft

Pinnacle Airlines Corporation (Memphis) wholly owned subsidiary, Pinnacle Airlines Inc. (Memphis), has announced it has reached a tentative agreement with the Air Line Pilots Association (ALPA), the legal representative of the Pinnacle Airlines pilot group on cost reductions that cover pay, retirement, work rules and benefits.

A separate agreement was reached among Pinnacle Airlines, Pinnacle pilots and Delta Air Lines that includes long-term career opportunities and the addition of 40 Bombardier CRJ900s to the Pinnacle fleet. With this agreement, Pinnacle’s long-term fleet plan has been established at 81 CRJ900 aircraft. The CRJ900 deliveries are planned for the fall of 2013 and are planned to be completed by year-end of 2014. Pinnacle will remove its 140 CRJ200 aircraft from the fleet over the next two to three years.

ALPA members will have the opportunity to vote on the tentative agreement in January and, if approved, the changes would become effective when similar changes are implemented for Pinnacle’s other labor groups and non-union employees. The tentative agreement also remains subject to approval and review by the Bankruptcy Court.

Flying as a Delta Connection carrier, Pinnacle Airlines operates 197 regional jets on 1,000 daily flights to 131 cities in the United States and Canada.

Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N181PQ (msn 15181) of Pinnacle Airlines arrives at Delta’s Atlanta hub.

Delta Connection-Pinnacle Airlines:

Delta orders 40 new Bombardier CRJ900 regional jets

Delta Air Lines (Atlanta) has finalized an agreement with Bombardier Aerospace that will allow the airline to continue restructuring its domestic fleet by replacing less efficient single-class 50-seat aircraft with new two-class 76-seat aircraft. As part of the agreement, Delta will acquire 40 new CRJ900 two-class regional jets, with the option to purchase an additional 30 CRJ900 aircraft, and Bombardier will assist Delta in phasing out 60 single-class CRJ200 aircraft.

The addition of the CRJ900 is the latest step in Delta’s domestic fleet optimization plan focused on reducing inefficient flying, implementing strong capacity discipline by matching the right size aircraft to each market and improving the customer experience. The 76-seat CRJ900 will primarily replace less efficient 50-seat aircraft on a capacity-neutral basis. Retiring these aircraft reduces fuel and maintenance expense, improving Delta’s cost structure and environmental profile.

This announcement follows previously announced transactions supporting Delta’s domestic fleet optimization plan, including the addition of 88 Boeing 717-200 aircraft to primarily replace 50-seat aircraft, and acquisition of 100 new Boeing 737-900 ER jets to replace Boeing 757 and 767 aircraft.

Delta will begin taking delivery of CRJ900, 717-200 and 737-900 ER aircraft in the latter half of 2013.

This agreement also supports Delta’s efforts to improve the customer experience. The 40 76-seat CRJ900 aircraft enhance Delta’s efforts to offer customers more first class seats than any other airline. The CRJ900 will be configured with 12 seats in the first class cabin, 12 seats in Delta’s popular Economy Comfort section and 52 seats in economy. The aircraft will feature Delta’s all-leather seating in a two-by-two configuration with window and aisle seats only. Customers flying on Delta’s regional aircraft will continue to have access to the planeside valet program, with the opportunity to drop off larger carry-on baggage at the boarding door and pick it up planeside upon arrival.

Larger two-class regional jets flying for Delta also offer in-flight Wi-Fi access, Delta’s complimentary snacks and beverages, food available for purchase and complimentary first class meals on flights over 900 miles.

Delta’s regional fleet currently features 255 larger two-class regional jets, including 101 CRJ900 aircraft.

It is unclear which airline will operate the new CRJ900 aircraft.

In other Delta Connection news, flight attendants at subsidiary Compass Airlines (Minneapolis/St. Paul) have requested arbitration by the National Mediation Board (NMB) that will allow them to strike if management fails to negotiate a new agreement according to this report by Reuters.

Read the full report: CLICK HERE

Top Copyright Photo: Michael B. Ing. Formerly operated by Comair, Bombardier CRJ900 (CL-600-2D24) N548CA (msn 15159) is now assigned to SkyWest Airlines (St. George).

Delta Air Lines:

Delta Connection-SkyWest Airlines:

Delta Connection-Compass Airlines:

Bottom Copyright Photo: Brian McDonough. Compass Airlines operates a large Embraer fleet for Delta Air Lines. Embraer ERJ 170-200LR (ERJ 175) N608CZ (msn 17000195) arrives at Baltimore/Washington.

Republic Airways Holdings issues a statement concerning subsidiary Chautauqua Airlines

Republic Airways Holdings (Indianapolis) today issued the following statement concerning its subsidiary Chautauqua Airlines (Indianapolis):

Republic Airways Holdings Inc. today (October 31) announced it has reached agreements with several key stakeholders which, combined with other initiatives taken, including placing idled aircraft back into revenue service, will mitigate future negative cash flows at its Chautauqua Airlines subsidiary on average by approximately $45 million annually over the next five years.

“This is an important milestone in our Chautauqua restructuring effort,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “These agreements take us about three-quarters of the way to our stated need of $60 million in average annual cash flow improvements at Chautauqua in order to stabilize and secure its future. We still have approximately two-thirds of our small jet fleet of 70 aircraft operating under capacity purchase agreements (CPAs) with less than two years remaining, so we are focused on ensuring both our labor productivity and long-term maintenance costs of these aircraft remain competitive.”

The Company also announced it has amended its CPA between Chautauqua Airlines and Delta Air Lines to provide for the operation of an additional seven Embraer ERJ 145 aircraft for a period of one year for each aircraft. All seven aircraft are expected to be placed into service with Delta before the end of 2012. Prior to the amendment, Chautauqua operated a total of twenty-four Embraer ERJ 145 aircraft under a CPA which continues through May 2016.

“The deployment of these seven aircraft, combined with our other recent CPA activity, means we will have placed all remaining idle 50-seat regional jet aircraft back into revenue service by the end of 2012. Ensuring our 50-seat aircraft remain active under agreements with our major airline partners is an important component of our Chautauqua restructuring effort,” said Bedford.

Meanwhile the Teamsters Local 357 issued this statement:

Pilots who fly for one of the nation’s largest regional airline companies say it’s not a lack of qualified pilots, but rather a lack of pay and respect that’s grounding airplanes and could cause a ripple effect in the nation’s air transportation system.

This week, Republic Airways Holdings announced that it would operate 27 fewer airplanes and expects to hire almost half the number of pilots anticipated in 2014 due a lack of candidates who meet new FAA rules mandating 1,500 hours of experience. However, the issues are more complex according to International Brotherhood of Teamsters Local No. 357 which represents the 3000+ pilots who fly for the Indianapolis-based airline.

“Regional carriers as a whole need to offer better pay and work rules to attract new pilots,” said Local 357 President Craig Moffatt. “The lack of a competitive contract here at Republic contributes to poor quality of life with sub-standard pay to boot. This, in turn, leads qualified pilots to look elsewhere.”

The current collective bargaining agreement (CBA) or contract was ratified in 2003 and became amendable in October of 2007. Pilots are covered by the Railway Labor Act, so the contract does not expire. Negotiations began in April 2007 and entered mediation in 2011. Local 357 pilots have been without a contractual raise or an adjustment of work rules to reflect industry and economic changes for over six years—and counting.

Regional carriers are a key link in the nation’s air-transportation system. Approximately half of the nation’s domestic flights are outsourced to regional airlines rather than flown by a larger carrier. Republic Airways Holdings owns and operates Chautauqua Airlines, Republic Airlines and Shuttle America Airlines which in turn fly for American, United, Delta and US Airways.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Embraer ERJ 145LR (EMB-145LR) N272SK (msn 145306) arrives at Baltimore/Washington.

Delta Connection/Chautauqua Airlines:

Pinnacle Airlines reaches a tentative contract agreement with its flight attendants

Pinnacle Airlines Corporation’s (Memphis) wholly owned subsidiary, Pinnacle Airlines Inc. (Memphis), announced it has reached a tentative agreement with the Association of Flight Attendants-CWA (AFA), the legal representative of the Pinnacle Airlines Flight Attendant group. Pinnacle is seeking concessions from all of its employees in order to emerge successfully from Chapter 11 proceedings with a competitive cost structure. The two sides reached a tentative agreement on concessions that cover pay, retirement, work rules and benefits. The concessions would become effective when concessions are implemented for other labor groups and non-union employees. AFA members at the airline will now have the opportunity to vote on the tentative agreement in the coming days and, if ratified, will avoid the Section 1113 litigation process in bankruptcy court.

The tentative agreement also remains subject to required corporate approvals and review by the Bankruptcy Court.

Delta Connection-Pinnacle:

Pinnacle Airlines’ pilots react to the company’s motion to void the current contract

Capt. Tom Wychor, Chairman of the Pinnacle Airlines arm of the Air Line Pilots Association, Int’l (ALPA), released the following statement regarding the Section 1113 filing by Pinnacle Corporation.

“Late last night Pinnacle filed a motion in the U.S. Bankruptcy Court for the Southern District of New York to reject the pilots’ collective bargaining agreement. While this filing was expected, we do not think that it was necessary for Pinnacle to take this step so shortly after contract negotiations resumed. We believe the filing is an ill-advised distraction from the real work of negotiating a consensual agreement that maintains industry standard pay, work rules and benefits and can garner pilot support to help Pinnacle move through this difficult period.

“We acknowledge that concessions are necessary to allow Pinnacle to successfully reorganize. The extraordinary level of concessions sought by Pinnacle, however, would set a new floor for pilot contracts within the regional airline industry. The bottom line is this: in the five months since company executives filed for bankruptcy, they have not been able to justify the level of concessions they are seeking. Rather than solving its problems, Pinnacle executives are attempting to use the bankruptcy process to gain an overwhelming and unfair competitive advantage in the industry. We firmly believe that if the bankruptcy court allows Pinnacle to implement steep reductions in our wages, work rules and benefits that it is proposing, the cost of pilot attrition and inability to hire new pilots in the future would vastly outweigh the assumed short-term benefits of the imposed cuts.

“We encourage our management to bring to the bargaining table the same energy they have used to run to the courtroom. We must find enough common ground to form the basis for a new agreement, one that provides a future for both Pinnacle Airlines and its pilots.”

Delta Connection-Pinnacle Airlines:

Delta to drop the New York LaGuardia-Philadelphia route

Delta Air Lines (Atlanta) is planning to drop the New York (LaGuardia)-Philadelphia route on November 3 according to Airline Route. The route is currently operated with Embraer ERJ 135s and ERJ 145s.

Copyright Photo: Brian McDonough. Embraer ERJ 145LR (EMB-145LR) N568RP (msn 145800) in the special 800th (Embraer) logo arrives at Baltimore/Washington.

Delta Connection-Chautauqua:

SkyWest to get 34 Comair aircraft for the Delta Connection operation, will retire 66 CRJ200s

SkyWest, Inc. (SkyWest Airlines) (St. George) has announced that it has reached an understanding with Delta Air Lines, Inc. (Atlanta) on a transaction which provides SkyWest, Inc. 34 additional dual-class regional jet aircraft and for the early termination of 66 Bombardier CRJ200 regional jet aircraft under its existing Delta Connection agreements. The 34 additional aircraft consist of five Bombardier CRJ700 aircraft and 29 Bombardier CRJ900. SkyWest, Inc. anticipates that it will take delivery of the 34 aircraft incrementally between August 2012 and June 2013. Subject to the completion of agreements to be negotiated between SkyWest, Inc. and Delta, SkyWest, Inc. also anticipates that these changes will be incorporated into its existing Delta agreements with a December 2022 termination date for these operating rights.

SkyWest, Inc. intends to remove the 66 CRJ200 aircraft from existing Delta Connection service between August 2012 and December 2015. Of those aircraft, 41 are Delta-financed aircraft which are scheduled to be returned to Delta without obligation to SkyWest, Inc. The remaining 25 aircraft are SkyWest, Inc. financed aircraft and SkyWest is currently working on opportunities to mitigate the financial risk associated with removing those aircraft from Delta service.

Copyright Photo: Michael B. Ing. Bombardier CRJ900 (CL-600-2D24) N802SK (msn 15061) is pictured on final approach into Los Angeles International Airport.

Delta Connection-SkyWest:

Comair to cease all operations on September 29

Delta Air Lines (Atlanta) today announced its subsidiary, Comair, Inc. (Delta Connection) (Cincinnati) will cease all operations after September 29, 2012.

The company issued the following statement this morning:

“Ryan Gumm, President of Comair, communicated Delta’s decision this morning to Comair employees in a memo, the full text of which is included below.

The discontinuation of Comair’s operations will not result in any significant changes to Delta’s network, which has enough flexibility to accommodate these changes. Currently, Comair accounts for approximately one percent of Delta’s network capacity. There will be no disruption to customers and no significant adjustments to Delta’s flight schedule or locations served. All customers who travel on the Delta network, whether on Delta Connection flights or mainline aircraft, can continue to make travel plans with Delta as they have in the past.

Cincinnati will continue to be an important market in Delta’s worldwide network. Over the past several years, working with community leaders, Delta has right-sized capacity at Cincinnati to better match service to local passenger demand. Cincinnati is now a profitable market for Delta and the city continues to enjoy over 120 peak daily flights, with non-stop service to 49 destinations. No reductions in the number of Delta flights are planned at Cincinnati as a result of this decision.

To                            All Comair Employees
From                        Ryan Gumm, President
Subject                    Comair to Cease Operations
Date                        July 27, 2012

All,

Today, I am writing to let you know that Delta has made the difficult decision to cease Comair’s operations after September 29, 2012.

Delta recently announced its intent to reduce the overall number of 50-seat regional jets in its network from nearly 350 to 125 or fewer in light of the significant changes in the economic and competitive conditions in the airline industry. We believed this announcement would have a negative impact on Comair because we operate some of the oldest 50-seat aircraft in the Delta Connection fleet, which also have the highest unit cost per flight hour. And, in fact, Delta has decided to remove the remaining 16 Comair 50-seaters from the Delta network, leaving Comair with only 28 aircraft in scheduled service. This further reduction of Comair’s active fleet will only create higher unit costs, which equates to a business model that is no longer sustainable in this competitive regional environment.

I understand that today’s news is very difficult and raises many questions for you and your family. Human Resources is prepared to directly assist you during this time. They will post a memo and other documents on the Human Resources Epic page to keep you informed of the assistance available and to help answer many of your questions. We will also have staff available over the weekend to answer questions if needed. If after reviewing the information on Epic you have any additional questions or concerns, please do not hesitate to reach out to your departmental leadership as well.

The discontinuation of Comair’s operations is in no way a failure or a reflection of your work – it is an unfortunate necessity due to the economic limitations of our aging aircraft, cost structure, the long-term outlook for 50-seat aircraft, and our challenging industry and economy. The quality of our operations has continued to be outstanding during our lengthy restructuring efforts, and I am honored to have had the opportunity to lead such a committed team. I am asking that each of you recognize the importance of remaining focused on safety and the job at hand as we continue operations throughout the wind-down period. Your continued commitment and your dedication to a safe and reliable operation is a testament to the professional team we have built here at Comair.”

Comair started operations in March 1977 and became a Delta Connection carrier on September 1, 1984.

Top Copyright Photo: Ken Petersen. Bombardier CRJ900 (CL-600-2D24) N695CA (msn 15097) taxies at New York (JFK) in the special “30 years” (1977-2007) when it celebrated its 30th Anniversary.

Bottom Copyright Photo: Jay Selman. ComAir started out as an independent carrier. Shorts SD3-30 N2630A (msn SH.3081) is pictured near Cincinnati in August 1982 dressed in the 1977 livery. The airframe was destroyed in a rare tornado at Miami on February 2, 1998.

Delta Connection-Comair:

Delta to drop Newburgh-Atlanta service on September 1

Delta Air Lines (Atlanta) will drop the Newburgh (Stewart International Airport)-Atlanta route on September 1 due to low numbers. The route is operated by ExpressJet Airlines. Atlantic Southwest Airlines (ASA) was merged with ExpressJet on December 31, 2011 and adopted the ExpressJet name.

Read the full story from recordonline.com: CLICK HERE

Delta Connection-Atlantic Southeast Airlines: CLICK HERE