Category Archives: Delta Connection

Delta to start weekly seasonal nonstop Atlanta-Fargo, North Dakota flights on December 21

Delta Air Lines (Atlanta) will add new nonstop seasonal service between Fargo, North Dakota and Atlanta, effective on December 21, 2013. Fargo is a growing market.

The Saturday-only service between Fargo’s Hector International Airport and Hartsfield-Jackson Atlanta International Airport will be operated by Delta Connection carrier ExpressJet Airlines (Atlanta) using a two-class Bombardier CRJ900, equipped with 12 First Class seats, 12 Economy Comfort seats and 52 seats in the main cabin.

Delta’s new nonstop seasonal service between Fargo and Atlanta is scheduled as follows:

Service	Flight	Departs	Arrives	Service Begins	Service Ends
ATL-FAR	5180	7:15 p.m.	9:30 p.m.	Dec. 21, 2013	March 29, 2014
FAR-ATL	5181	6:15 a.m.	10:10 a.m.	Dec. 21, 2013	March 29, 2014

Copyright Photo: Jay Selman/AirlinersGallery.com. CRJ900 (CL-600-2D24) N131EV (msn 15217) prepares to taxi from the gate at the Atlanta hub.

Delta Air Lines:

FAA investigates a near miss in New York between Delta Air Lines and Shuttle America aircraft

The Federal Aviation Administration (Washington) is investigating a near-miss on June 13 between a Delta Air Lines Boeing 747-400 inbound to New York’s JFK International Airport executing a go-around from runway 4L and a Shuttle America Embraer ERJ 170 operating as Delta Connection flight outbound from runway 13 at New York’s LaGuardia Airport. Both aircraft lost the required amount of separation according to the FAA.

Read the full story from CBS News: CLICK HERE

Compass Airlines to operates an hourly Los Angeles-San Francisco shuttle for Delta Air Lines

Delta Air Lines (Atlanta) is planning to turn over the Los Angeles-San Francisco route to subsidiary Compass Airlines (Delta Connection) (Minneapolis/St. Paul). Starting on September 3, 2013, Compass will operate 14 hourly roundtrips with Embraer 175s per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N620CZ (msn 17000214) arrives at Los Angeles International Airport.

Delta Connection-Compass Airlines:

SkyWest reports quarterly income of $3.2 million, will remove 66 CRJ200s from the Delta contract

SkyWest, Inc. (SkyWest Airlines) (St. George) today reported net income of $3.2 million, or $0.06 per diluted share, for the quarter ended March 31, 2013, compared to a net loss of $(0.7) million, or $(0.01) per diluted share, for the same period last year.

Quarter Highlights

SkyWest’s financial results for the quarter ended March 31, 2013 were slightly improved compared to the financial results for the quarter ended March 31, 2012. SkyWest generated a 2.8 percent increase in block hours which resulted in additional revenues of approximately $10.5 million; however, overall revenues decreased by a total of $117.7 million as a result of lower reimbursement payments of $99.7 million for fuel and $19.7 million for engine overhaul expenses, under its contracts with SkyWest’s major partners. The majority of fuel is now purchased directly by SkyWest’s major partners and as a result, SkyWest reports lower operating revenues and expenses. SkyWest’s financial results were also negatively impacted during the quarter ended March 31, 2013 by severe weather which resulted in approximately 1,900 cancelled flights and 4,500 fewer block hours at an estimated impact of $4.5 million (pretax).

Following are some selected highlights for the quarter ended March 31, 2013 compared to the same period last year:

(Unaudited) Dollars in thousands, except per share amounts	Three Months Ended March 31,
	2013	2012	% Change


Total operating revenue	$ 803.5	$ 921.2	(12.8)%
Total operating margin	1.9%	2.2%	(0.3)pts
Pretax income (loss)	$ 5.4	$ (1.2)	NM
Net income (loss)	$ 3.2	$ (0.7)	NM
Fully diluted earnings per share	$ 0.06	$ (0.01)	NM
Block hours	571,991	556,421	2.8%

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO, said “We had planned to achieve improved financial results for the quarter just ended over the same period last year, however our results were negatively impacted primarily by weather and other operational challenges,” He continued, “In spite of the challenges experienced during the quarter, we remain optimistic on our profit improvement objectives as well as improved operating results.”

Financial and Operating Results

Operating revenues totaled $803.5 million for the quarter ended March 31, 2013, compared to $921.2 million for the same period last year or a decrease of $117.7 million, or 12.8%. The decrease was due primarily to the reduction of $128.2 million of fuel and certain engine overhaul amounts which are directly reimbursed by major partners and recorded as operating revenues. Total block hours for the quarter ended March 31, 2013 were 571,991, or an increase of 2.8 percent, compared to 556,421 for the same period last year, which generated approximately $10.5 million in additional revenues.

Total airline expenses (consisting of total operating and interest expenses) decreased $114.6 million, or 12.5%, during the quarter ended March 31, 2013, compared to the same period in 2012. However, after excluding pass-through costs for fuel and certain engine overhaul expenses, total airline expenses increased $4.8 million or less than 1%.

Under United Express agreements for SkyWest Airlines, Inc. (“SkyWest Airlines”) and ExpressJet Airlines, Inc. (“ExpressJet Airlines”), SkyWest recognizes revenue at fixed hourly rates for mature engine maintenance on regional jet engines and SkyWest recognizes engine maintenance expense on its CRJ200 regional jet engines on an as-incurred basis as maintenance expense. During the quarter ended March 31, 2013, CRJ200 engine expense under these agreements decreased $7.6 million to $10.0 million compared to $17.6 million for the quarter ended March 31, 2012, as a result of decreased engine overhaul expense due to the timing of scheduled engine maintenance events. SkyWest was reimbursed approximately $11.4 million and $9.4 million for engine overhaul expense, under its United Express agreements, in each of the periods ended March 31, 2013 and 2012, respectively.

Liquidity

At March 31, 2013, SkyWest had $631.5 million in cash and marketable securities, compared to $709.4 million as of December 31, 2012. The decrease in cash and marketable securities of $77.9 million was primarily the result of the payment of scheduled semi-annual lease and debt payments. SkyWest’s long-term debt was $1.44 billion as of March 31, 2012, compared to $1.47 billion as of December 31, 2012. The decrease in long-term debt was due primarily to SkyWest’s payment of normal recurring debt obligations. SkyWest has significant long-term lease obligations that are recorded as operating leases and are not reflected as liabilities on SkyWest’s consolidated balance sheets. At a 4.7% discount rate, the present value of these lease obligations was approximately $1.7 billion as of March 31, 2013.

Recent Business Developments

On August 2, 2012, SkyWest announced the award of 34 additional dual-class aircraft and the removal of 66 CRJ200 aircraft with Delta Airlines, Inc. (“Delta”) and has taken delivery of 33 of these dual-class aircraft. SkyWest anticipates removal of the 66 CRJ200 aircraft starting in October of 2013.

On September 11, 2012, SkyWest announced the signing of an agreement with American Airlines, Inc. (“American Airlines”) to operate 23 CRJ200 regional jet aircraft as American Eagle and had integrated 12 of these aircraft into operations by December 31, 2012. The remaining 11 aircraft were introduced into service February 14, 2013.

On July 11, 2012, SkyWest announced the execution of an Aircraft Purchase Agreement with Mitsubishi Aircraft Corporation covering the purchase of 100 Mitsubishi regional jet aircraft. Deliveries are currently expected to begin in 2016.

SkyWest has increased its total fleet to 752 aircraft as of March 31, 2012, compared to 727 aircraft as of March 31, 2012.

Copyright Photo: Michael B. Ing. SkyWest will start the removal of 66 Bombardier CRJ200 aircraft from the Delta Connection contract starting in October 2013. Bombardier CRJ200 (CL-600-2B19) N408SW (msn 7055) completes its final approach into Los Angeles International Airport.

Delta Connection-SkyWest:

Pinnacle Airlines emerges from Chapter 11 bankruptcy reorganization as a Delta subsidiary

Pinnacle Airlines (Pinnacle Airlines Corporation) (Minneapolis/St. Paul) emerged from Chapter 11 bankruptcy protection and reorganization on May 1. The airline is now a subsidiary of Delta Air Lines (Atlanta). As previously reported, Pinnacle is moving to the Minneapolis/St. Paul hub. Delta is investing $52 million in the reorganized carrier.

Pinnacle filed for Chapter 11 on April 1, 2012 in the U.S. Bankruptcy Court for the Southern District of New York.

Read the full story from the Atlanta Journal-Constitution: CLICK HERE

Copyright Photo: Bruce Drum. Pinnacle will operate a large Bombardier CRJ900 fleet for Delta (eventually 92 aircraft). The smaller 50-seat CRJ200 fleet of 140 aircraft is being gradually phased out. Bombardier CRJ900 (CL-600-2D24) N147PQ (msn 15147) arrives at the Atlanta hub.

Delta Connection-Pinnacle:

Delta to expand service to Montana for the summer season

Delta Air Lines (Atlanta) will offer new and expanded summer service from Montana to Atlanta and Los Angeles, effective on June 22, 2013.

The new service changes include:

Atlanta to Bozeman expanded from twice per week to three weekly
Atlanta to Kalispell expanded from once per week to twice weekly
New Saturday service from Atlanta to Missoula
New Saturday service from Los Angeles to Bozeman

Delta’s new service between Atlanta and Bozeman, Kalispell and Missoula, will be operated with Boeing 737-800 aircraft. The fourth flight, between Bozeman and Los Angeles, will be operated by Delta Connection carrier SkyWest Airlines (St. George) using a 76-seat two-class Bombardier CRJ900.

Returning summer seasonal service between Atlanta and Bozeman will operate Wednesdays and Saturdays on a Boeing 757-200, while Atlanta-Kalispell service will operate Saturdays on Boeing 737-800 aircraft.

Delta has served Montana since 1927 and offers more flights statewide than any other airline. During the peak summer travel season, Delta serves eight Montana communities with more than 1,300 monthly departures and offers 54 percent more seats than its largest competitor. In 2012, the airline carried 1.3 million passengers to and from Montana.

Montana markets Delta provides service include: Butte, Billings, Bozeman, Great Falls, Helena, Kalispell, Missoula and West Yellowstone.

Delta’s new and returning summer seasonal flights in Montana are scheduled as follows:

Bozeman/Atlanta Operated on a Boeing 737-800

Departs	Arrives	Service Dates	Frequency
Atlanta – 2:55 p.m.	5:05 p.m.	June 22-Aug. 24	Saturday Only
Bozeman – 8:15 a.m.	2:00 p.m.	June 23-Aug. 25	Sunday Only

Bozeman/Atlanta Operated on a Boeing 757-200

Departs	Arrives	Service Dates	Frequency
Atlanta – 11:00 a.m.	1:10 p.m.	June 22-Aug. 31	Wednesday/Saturday
Bozeman – 2:00 p.m.	7:47 p.m.	June 22-Aug. 31	Wednesday/Saturday

Bozeman/Los Angeles Operated by Delta Connection carrier Skywest on a CRJ900

Departs	Arrives	Service Dates	Frequency
Los Angeles – 9:00 a.m.	12:15 p.m.	June 22-Aug. 24	Saturday Only
Bozeman – 12:50 p.m.	2:05 p.m.	June 22-Aug. 24	Saturday Only

Kalispell/Atlanta Operated on a Boeing 737-800

Departs	Arrives	Service Dates	Frequency
Atlanta – 3:00 p.m.	5:38 p.m.	June 22-Aug. 24	Saturday Only
Kalispell – 8:00 a.m.	2:07 p.m.	June 23-Aug. 25	Sunday Only

Kalispell/Atlanta Operated on a Boeing 737-800

Departs	Arrives	Service Dates	Frequency
Atlanta – 9:50 a.m.	12:28 p.m.	June 22-Aug. 31	Saturday Only
Kalispell – 1:10 p.m.	7:17 p.m.	June 22-Aug. 31	Saturday Only

Missoula/Atlanta Operated on a Boeing 737-800

Departs	Arrives	Service Dates	Frequency
Atlanta – 10:25 a.m.	1:03 p.m.	June 22-Aug. 31	Saturday Only
Missoula – 1:45 p.m.	7:51 p.m.	June 22-Aug. 31	Saturday Only

Copyright Photo: Michael B. Ing. Boeing 757-232 N610FL (msn 22817), formerly the pink Breast Cancer Awareness 757 aircraft, climbs away from Ted Stevens Anchorage International Airport (ANC).

Delta Air Lines:

Delta Connection-SkyWest Airlines:

Delta to connect Dickinson, ND with the Minneapolis/St. Paul hub

Delta Air Lines (Atlanta) will add two daily flights between Dickinson’s Theodore Roosevelt Regional Airport in Dickinson, North Dakota and Minneapolis-St. Paul International Airport, effective on June 10, 2013.

The new service will be operated by Delta Connection carrier SkyWest Airlines (St. George) using 50-seat Bombardier CRJ200 regional jets. Last year, Delta also added service to Williston, N.D., where the Bakken oil reserves were first discovered.

The new market is growing due to the local expanding gas and oil industry.

Delta’s two daily flights between Dickinson and Minneapolis are scheduled as follows:

Dickinson to Minneapolis-St. Paul

Departs	Arrives	Service Begins
7:45 a.m.	10:19 a.m.	June 10, 2013
11:50 a.m.	2:23 p.m.	June 10, 2013

Minneapolis-St. Paul to Dickinson

Departs	Arrives	Service Begins
10:15 a.m.	11:02 a.m.	June 10, 2013
5:30 p.m.	6:16 p.m.	June 10, 2013

Delta Air Lines:

Delta Connection-SkyWest:

The bankruptcy court approves Pinnacle’s path out of bankruptcy, Delta to invest

Pinnacle Airlines Corporation (Memphis) has announced that the comprehensive agreements it reached with Delta Air Lines (Atlanta), the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors’ Committee) in Pinnacle’s Chapter 11 cases have been approved by the Bankruptcy Court overseeing Pinnacle’s cases. The agreements together provide a path 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 to operating a fleet of 81 fuel-efficient, two-class regional jets for Delta.

The comprehensive agreements 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 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 CRJ200 aircraft will be removed from operation over the next two to three years.
A new collective bargaining agreement with Pinnacle’s pilots, as well as a bridge agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle’s pilots.
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 Corporation after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by February 15, 2013.

Delta Connection-Pinnacle Airlines:

Pinnacle Airlines’ pilots ratify the restructuring contract

Pinnacle Airlines’ (Delta Connection) (Memphis) pilots, represented by the Air Line Pilots Association, Int’l (ALPA), today ratified a bankruptcy restructuring contract that was tentatively agreed to in December. With more than 86 percent of eligible pilots casting ballots, 85 percent of Pinnacle pilots voted in favor of the agreement.

The new seven-year agreement includes, among other cuts, a 9 percent reduction in pay for all pilots plus longevity caps to all pay scales which will further cut the pay of more than half of Pinnacle’s pilots by as much as another 16 percent. In addition to almost 25 percent pay cuts, the deal also increases health-care costs for all pilots while reducing pilot retirement benefits by more than 50 percent for Pinnacle’s most senior pilots. In recognition of the magnitude of the pilots’ concessions, the contract also includes a bridge agreement that provides a one-time longevity transition payment and guaranteed hiring for many Pinnacle pilots at Delta Air Lines. Pinnacle Airlines flies exclusively as a Delta Connection carrier and Delta will likely own Pinnacle as a result of having provided the financing that allowed Pinnacle to reorganize.

“Management failures are responsible for Pinnacle’s current financial crisis,” Capt. Wychor added, “but only this sacrifice by the pilots could preserve a future for the airline and its employees. In that future, we will seek out new employment opportunities for our pilots who no longer see a viable career path at Pinnacle while we protect and shore up the restructured contract for those who remain.”

The pilot-ratified contract will now be submitted to the Bankruptcy Court for the Southern District of New York for final approval.

Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N146PQ 9msn 15146) of Pinnacle Airlines arrives at the Atlanta hub.

Delta Connection-Pinnacle Airlines:

Delta to offer nonstop Los Angeles-Seattle/Tacoma service starting on April 8

Delta Air Lines (Atlanta) will add three daily flights between Los Angeles and Seattle/Tacoma, beginning April 8, 2013.

Delta is rapidly growing Seattle as an Asian gateway and recently received approval for new service to Shanghai for summer 2013. The airline currently offers international service to Beijing and Osaka, Japan. Delta also has an extensive codeshare agreement with Alaska Airlines in Seattle, providing customers access to more than 50 domestic markets. From Los Angeles, customers can enjoy nonstop service to destinations including Sydney and Tokyo, as well as codeshare flights with Virgin Australia to Melbourne and Brisbane.

The new service will be operated by Delta Connection carrier SkyWest Airlines (St. George) using 76-seat two-class Bombardier CRJ900 regional jets. In addition to a first class cabin, these aircraft are equipped with onboard WiFi and Delta’s snack, food for purchase and beverage offerings.

Delta currently operates the world’s largest WiFi-equipped fleet, and plans to introduce WiFi onboard international widebody aircraft in 2013.

By summer 2013, all trans-Pacific flights will feature Delta’s full flat-bed product in Business Elite. In addition, Delta is in the process of upgrading its facilities at both Los Angeles International Airport and Seattle-Tacoma International Airport as part of its ongoing $3 billion investment to improve products, services and facilities.

Delta’s three nonstop flights between Los Angeles and Seattle are scheduled as follows:

Los Angeles to Seattle

Flight	Departs	Arrives	Service Begins
4523	8:15 a.m.	11:00 a.m.	April 8, 2013
4591	3:20 p.m.	6:05 p.m.	April 8, 2013
4564	9:30 p.m.	12:15 a.m.	April 8, 2013

Seattle to Los Angeles

Flight	Departs	Arrives	Service Begins
4563	6:45 a.m.	9:25 a.m.	April 9, 2013
4523	11:50 a.m.	2:30 p.m.	April 8, 2013
4591	6:50 p.m.	9:30 p.m.	April 8, 2013

Delta Air Lines serves more than 160 million customers each year.

Copyright Photo: Michael B. Ing. SkyWest Airlines’ Bombardier CRJ900 (CL-600-2D24) N823SK (msn 15205) prepares to land at Los Angeles International Airport.

Delta Air Lines: