Delta Sells Asa To Skywest

[FA Mikey]

Delta Air Lines, Inc. today announced that it has entered into a definitive agreement to sell its wholly owned regional airline subsidiary Atlantic Southeast Airlines, Inc. (ASA) to SkyWest, Inc. for a purchase price of $425 million in cash. ASA will continue to serve Delta customers under a new 15- year Delta Connection agreement.

Delta sells ASA

 

[WorldTraveler]

No love lost for this flyer on this transaction. DL's excuse of buying ASA years ago to improve its customer service experience obviously hasn't come to fruition. DL and ASA people both should be held accountable for that. I flew them just a couple weeks ago and, when they announced a delay, the cell phones clicked on and people could be heard saying that they were late "again". ASA's reputation is abyssmal and DL has done nothing to fix it. Skywest is a fine operator and I'm sure they will turn it around - if Delta keeps them; Delta could reject the contract with them in bankruptcy although the incentive is definitely there for DL not to reject the Skywest/ASA contract now.

As for the financial aspects, the most amazing part of the transaction is that DL sold assets when it is apparent that a further financial crisis is brewing later in the year. Perhaps DL realized they had to secure a new credit card processor and was willing to sell ASA to secure one; you must have a credit card processor whether in bankruptcy or not.

 

[kiloromeo]

this sale will cover the pilot lump sum payments.. for this year.

 

[luv2fly]

this sale will cover the pilot lump sum payments.. for this year.

[post="288642"][/post]​

This sale has nothing to do with lump payouts in regards to pilot retirements.
In regards to BK, the real danger with pilot retirements will be the company's inability to staff properly. Especially the larger aircraft. The obvious solution would be to increase the rate of recall of furloughed pilots, but for some reason, DL has chosen not to do so.

 

[DalMD88]

Rumor has it there has been a pretty good bypass rate for pilot recalls. I lot of them seem to be taking a wait and see route. I guess I would also if what ever I was doing was pretty good. I think they can bypass upto five years. They do run the risk of there not being a recall or new hiring when they are ready to come back.

 

[maddog]

Question: I have a close friend who flies for ASA out of Atlanta. If he decides to stay with ASA, what happens to him AFTER Delta files for bankruptcy? Does he still fly the regular routes for ASA out of Atlanta, or does Skywest dictate where he goes next? It's definitely a sore spot with him and I have not brought it up to him. I am very concerned.

 

[TheDog2004]

Question: I have a close friend who flies for ASA out of Atlanta. If he decides to stay with ASA, what happens to him AFTER Delta files for bankruptcy? Does he still fly the regular routes for ASA out of Atlanta, or does Skywest dictate where he goes next? It's definitely a sore spot with him and I have not brought it up to him. I am very concerned.

[post="288808"][/post]​

Once ASA is sold he becomes a SkyWest employee. The only way that a Delta BK could have an impact is if SkyWest's contract with Delta is cancelled or Delta goes out of business AND SkyWest doesn't have enough flying to justify that level of staff.

 

[GmanTX]

ASA is a horrible company. I worked for them in Dallas in the late 80's

 

[longing4piedmont]

ASA is a horrible company. I worked for them in Dallas in the late 80's

[post="288979"][/post]​

Yes it is. And flying them every week I can tell you that there has been no improvement. I have not had a flight to HKY that has been on time yet and it has been four months since they started service there. :down: