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Mike

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Aug 20, 2002
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Delta Air Lines, Mesa Air Group Announce Strategic Partnership

Wednesday May 4, 8:00 am ET

Mesa subsidiary Freedom Airlines to operate as Delta Connection carrier

ATLANTA, May 4 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL - News) and Mesa Air Group, Inc. (Nasdaq: MESA - News) have entered into a strategic partnership whereby Mesa subsidiary Freedom Airlines will become a Delta Connection carrier.

The new Delta Connection agreement provides for Freedom Airlines to operate up to 30 CRJ200 aircraft on routes throughout Delta's network for a period of 12 years, with the first aircraft planned to enter Delta Connection service as early as October 2005. The agreement provides Delta with long-term cost savings and efficiencies gained through Mesa's attractive operating costs and its complementary fleet of CRJ aircraft. Delta Connection carriers already operate the world's largest fleet of CRJ aircraft, with nearly 350 in service throughout the U.S. Canada, Mexico and the Caribbean.

In addition, the economics of the agreement allow Delta to place Freedom Airlines' Bombardier CRJ200 regional jets into Delta Connection service in lieu of 30 Fairchild Dornier aircraft previously operated for Delta by Atlantic Coast Airlines (now FLYi, Inc.).

"We are pleased to add another highly cost-effective, customer-focused regional airline to our portfolio of regional carriers," said J.T. Fisher, president, Delta Connection, Inc. "This agreement offers long-term cost savings to Delta and makes it economically attractive to upgrade flying that would have been operated with 32-seat Fairchild Dornier aircraft to 50-seat Bombardier CRJs, an aircraft that is more flexible and effective within our network and existing Delta Connection carrier fleet."

Said Jonathan Ornstein, CEO, Mesa Air Group, "Mesa is delighted to join the industry-leading Delta Connection program and we look forward to providing Delta customers with safe, efficient and reliable service. Delta will be a strong partner and this agreement establishes a strategic relationship that will bring value to Mesa for many years to come."

With the addition of Mesa's Freedom Airlines subsidiary, the Delta Connection program will include Delta's wholly owned subsidiaries Atlantic Southeast Airlines and Comair, regional carriers Chautauqua, Freedom, Republic and SkyWest, and codeshare partner American Eagle (in California). As previously reported, FLYi stopped serving as a Delta Connection carrier in October 2004 in connection with a change in its corporate strategy.

Mesa Air Group, Inc., the 2005 Air Transport World Regional Airline of the Year, is an efficient, high-quality provider of regional airline service through its subsidiaries Mesa Airlines, Freedom Airlines and Air Midwest. Mesa Air Group and its subsidiaries currently operates 179 aircraft with over 1,100 daily system departures to 165 cities, 44 states, the District of Columbia, Canada and Mexico. Mesa operates regional service for several major airline partners and independently as Mesa Airlines. The company, which was founded in New Mexico in 1982, has approximately 5,000 employees.

Delta Air Lines is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 490 destinations in 85 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.
 
Perhaps some of you could help me. I don't understand this move. It seems to me that DL already has a glut of RJs with their wholly-owneds. Now, they're taking on more. Is this a move to prep their own carriers for a spin-off?

This could be in anticipation of a shutdown by US, but if that doesn't happen in the next couple of months doesn't this just place even more of a cash drain on DL's balance sheet while these RJs fly around on less-than-optimum routes?

What's the goal here - short term/long term?
 
this is the operative paragraph:

In addition, the economics of the agreement allow Delta to place Freedom Airlines' Bombardier CRJ200 regional jets into Delta Connection service in lieu of 30 Fairchild Dornier aircraft previously operated for Delta by Atlantic Coast Airlines (now FLYi, Inc.).
 
Comair folks you better gear up for another round negioations from FRED since the new 70 seaters are not guaranteed even though they made us think were getting them if we signed on. I VOTED NO! The thoughts of new E170s were pretty tempting huh?
 
In one sense, Johnny O is very smart. He is diversifying his product. He now gets money from AWA, US, and DL. I think UA and NWA could even get in the mix. Nah, he's not that smart. Just my thoughts............
 
Here it comes.........Delta goes into bankruptcy and nullifies all contracts and uses Mesa's low cost's to whipsaw all their regional carriers into lower worker contracts and fee for departures for contract carriers.
 
PBRmeASAP said:
Here it comes.........Delta goes into bankruptcy and nullifies all contracts and uses Mesa's low cost's to whipsaw all their regional carriers into lower worker contracts and fee for departures for contract carriers.
[post="269630"][/post]​


Whipsaw?????? Or do you mean good business? What's wrong with fee for departure? CMR/ASA should sink or swim on their own. Pull the tube.
 
HGIEFOswitch said:
Whipsaw?????? Or do you mean good business? What's wrong with fee for departure? CMR/ASA should sink or swim on their own. Pull the tube.
[post="269698"][/post]​
Exactly, why guarantee any airline a profit by paying them per departure. Let the contract carriers split the ticket with the mainline and assume all the risk in operating their own airline. If they make it, great. If not, NEXT!
 
HGIEFOswitch said:
Whipsaw?????? Or do you mean good business? What's wrong with fee for departure? CMR/ASA should sink or swim on their own. Pull the tube.
[post="269698"][/post]​
Did I say there was anything wrong with fee for departure?
The scenerio I see....DElta goes into Ch11 and has to reaffirm contracts and uses the low Mesa rates to set the bar for who is going to do the flying.
 
PBRmeASAP said:
Did I say there was anything wrong with fee for departure?
The scenerio I see....DElta goes into Ch11 and has to reaffirm contracts and uses the low Mesa rates to set the bar for who is going to do the flying.
[post="270637"][/post]​

Seems plausible, maybe even likely, to me.
 
HGIEFOswitch said:
Whipsaw?????? Or do you mean good business? What's wrong with fee for departure? CMR/ASA should sink or swim on their own. Pull the tube.
[post="269698"][/post]​


Since when is "good business" the process of undercutting every other airline, putting pilots out of work just for the "priviledge" of flying a jet for pay rates that rival a Wal-Mart employee. Give me a F*U*C*K*I*N*G break. JO is just another Lorenzo. Oh, I'm sorry, are you too young to know who he is. Yeah, you were probably still crapping in your diapers when he was around. Wake up!