Tag Archives: Bombardier CL6002D24

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: AG Slide Show

Estonian Air and its pilots agree to a new contract, adverting a strike

Estonian Air (Tallinn) is moving ahead with its restructuring plan. The airline and its pilots have agreed to a new Collective Agreement. The pilots were threatening to strike the company yesterday and the negotiations and now a new contract adverted the strike. However the flag carrier faces major challenges for survival.

The struggling carrier has not made any money since 2006. The airline is downsizing and will rally around a fleet of just Bombardier CRJ900s for the next summer season operating on its most profitable routes.

The airline issued the following statement:

Estonian Air and Estonian Pilots Trade Association (ELA) signed a Collective Agreement which has been confirmed by the Supervisory Board of Estonian Air which had its regular meeting today. The Collective Agreement is valid up till January 31, 2014.

“The company has signed the Collective Agreement with ELA and from now on the management can carry on the implementation of Estonian Air restructuring,” commented Erkki Raasuke, the Chairman of Estonian Air Supervisory Council.

“After signing the Agreement, Estonian Air is able to focus on its daily operations on passenger servicing,” said Jan Palmér, the CEO of Estonian Air. “Today we can assure to our customers that all Estonian Air flights are operated according to the schedule.“

According to Rauno Menning, the Chairman of the Pilots Trade Association, an agreement has been achieved regarding rest and duty times. “The Collective Agreement will ensure the industrial peace inside the company,” added Menning.

The Collective Agreement is regulating duty and rest time, working conditions and relations between the airline and the Trade Union.

The provisions of the new Collective Agreement signed by the Pilots Trade Association are extended to all pilots of Estonian Air. The Pilots Trade Association is uniting approximately 80 pilots, out of which 70 are working at Estonian Air.
On 13 December 2012, Estonian Air signed a Collective Agreement with Estonian Air Cabin Crew Union which is valid up till the end of 2013. The Estonian Air Cabin Crew Union is uniting approximately 80 crew members.

Read the analysis by Bloomberg: CLICK HERE

Copyright Photo: Stefan Sjogren. The aircraft of the future Estonian Air fleet will now only be the pictured CRJ900 according to Airline Route. The new Embraer E-Jets will apparently be phased out, following the same exit as the Boeings. CRJ900 (CL-600-2D24) ES-ACB (msn 15261) touches down at Stockholm (Arlanda).

Estonian Air: AG Slide Show

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: AG Slide Show

Delta Connection-SkyWest Airlines: AG Slide Show

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: AG Slide Show

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: AG Slide Show

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: AG Slide Show

Delta Connection-SkyWest Airlines: AG Slide Show

Delta Connection-Compass Airlines: AG Slide Show

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.

SAS to start 45 new routes in 2013

Scandinavian Airlines-SAS (Stockholm) has announced it will launch 45 new routes in 2013. In addition, the airline is also increasing the frequency on some current domestic and European routes.

New routes from Sweden:

From Stockholm to Innsbruck, Pula, Palermo, Cagliari, Thessaloniki, Tel Aviv, Pristina and Alanya
From Gothenburg to Nice, Pristina and Östersund

New routes from Norway:

From Oslo to Salzburg, Berlin, Budapest, Santorini, Cagliari, Palermo, Pristina, Valencia, Malta, Lisbon, Athens, Tenerife and Pula
From Bergen to Dubrovnik and Antalya
From Trondheim to Split
From Stavanger to Antalya

New routes from Denmark:

From Copenhagen to San Francisco, Budapest, Prague, Newcastle, Cagliari, Palermo, Alanya, Thessaloniki, Pula and Biarritz

New routes from Finland:

From Helsinki to Paris, Rome, Prague, Geneva and Östersund
From Turku to Kittilä
From Tampere to Kittilä

In other news, on the financial side, SAS has announced the Danish Pilot Union members have approved the new austerity program.

According to the carrier, the new revolving credit facility of SEK 3.5 billion is therefore now only subject to parliamentary approval where required. These propositions in relation to the governments participation in the revolving credit facility will be presented to the parliaments in Sweden and Norway on December 12, 2012.

Copyright Photo: Paul Denton. Bombardier CRJ900 (CL-600-2D24) OY-KFG (msn 15237) climbs away from Geneva.

Scandinavian Airlines-SAS: 

Air France to consolidate Airlinair, Brit Air and Regional into one carrier with a new regional hub

Air France (Paris) as part of it turnaround plan is planning to merge regional carriers Airlinair, Brit Air, Regional and operate from a new strategic regional hub.

This new regional division will operate flights under a new brand.

The new name and flight schedule will be announced in January 2013 for a launch in April 2013. The new consolidated carrier will operate 86 aircraft, down from the current 93. 64 jobs are expected to be lost in the the consolidation.

Copyright Photo: Ton Jochems.Brit Air’s Bombardier CRJ900 F-HDTA (msn 15001) waits for the next flight at Amsterdam.

Air France by Brit Air: 

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: