What Is Going To Happen To The Express Carriers?

[750QS]

Just curious, what is going to happen to the express carriers for US and HP after they merge? Will CHQ still be loaning US the $125m?

 

[BoeingBoy]

Going by media reports and trying to read the tea leaves from the webcast, it seems like Republic (CHQ) has been replaced as an equity investor - the $125 million.

What is still in effect is the agreement for the sale of the Emb-170's & DCA/LGA commuter slots to Republic for $110 million. This is strictly at US' discretion (including Mr. Parker and probably the investors in that "US"), so it's unknown if the sale will go forward or not.

Just in case you're not familiar with US' express network, there is the MDA "division" flying the Emb-170 (on mainline ops certificate - not really a separage division), PSA flying CRJ's (200/700) & Piedmont flying Dash 8's (both wholly owned by US), Mesa (CRJ's / ERJ's) & their Midwest subdivision (Beech 1900's), Chataugua (RJ's), TransStates, & Colgan. Did I miss anybody?

Oh, Air Wisconsin will undoubtedly be moving CRJ's to US as they lose their UA flying. That ability is what their $125 million investment bought.

Some of this may well be simplified thru rejection of contracts in the US bankruptcy - Mesa's Ornstein has already been quoted as saying he expects their US contract to be cancelled.

 

[sand2snow]

In the future could PSA and Piedmont replace Mesa flying not just in the current USAirways but also in Phoenix and Vegas as well?

 

[PropPiedmont]

I hope so. I'm a PHX native working for PDT.

 

[BoeingBoy]

In the future could PSA and Piedmont replace Mesa flying not just in the current USAirways but also in Phoenix and Vegas as well?

[post="271268"][/post]​

Anything's possible, I guess. Mesa has a long term contract with HP, which can't be rejected out of hand like US could since HP's not in bankruptcy. There could be clauses in the contract that would allow the combined HP/US to get out of it.

Jim

 

[FM2436]

I hope so. I'm a PHX native working for PDT.

[post="271306"][/post]​

If you haven't had the chance to listen to the audio playback of the conference call, its worthwide to do so. The audio paly back will only be available through May 21, 2005. The numbers to call for the playback are 719/457-0820 or
888/203-1112 and the replay passcode is 8829743.

There is much discussion about the RJ fleet and how most of the CRJ-900's will be located in the east. The very last question, 59-minutes into the call, asks about the Dash-8's (you can advance the recorded conference call by 30-seconds by following the pre-conference instructions). The reply is the Dash-8 will remain with comments that the Dash-8s are fleet flexible, owned, and profitable.

 

[SpinDoc]

If you haven't had the chance to listen to the audio playback of the conference call, its worthwide to do so. The audio paly back will only be available through May 21, 2005. The numbers to call for the playback are 719/457-0820 or
888/203-1112 and the replay passcode is 8829743.

There is much discussion about the RJ fleet and how most of the CRJ-900's will be located in the east. The very last question, 59-minutes into the call, asks about the Dash-8's (you can advance the recorded conference call by 30-seconds by following the pre-conference instructions). The reply is the Dash-8 will remain with comments that the Dash-8s are fleet flexible, owned, and profitable.

[post="271699"][/post]​

Your comments about the DH8 are correct.
There will always be markets where it is not
profitable or practical to operate an RJ, and
DH8 with cabin class service is a very good
aircraft to serve those markets.

If US rejects Mesa contracts prior to BK exit,
Air Wisconsin will fill the gap. PSA and MDA
will continue to be market builders, starting
with PSA CRJ-200's with 50 seats. The CRJ-700
will be used on routes where demand exceeds
50 seat aircraft, and the EMB170 will be used
as a 319/737 replacement in markets where
the latter cannot support a profitable operation.

As I understand it, Mesa and their subsidiary
Air Midwest are out, as are Chautauqua and
Republic. Trans States may continue to operate
J41's for awhile in current Air Midwest markets,
but Trans States RJ's are on the way out. Colgan
is also out and is working to secure contracts
with Continental to fly thinner routes out of
IAH with the SAAB 340. The MDA EMB170's will
be kept in house.

This will leave US/HP with Air Wisconsin, PSA,
MDA, Trans States turbos, Mesa CRJ-700's
and 900's, and Piedmont DH8's until the Mesa/HP
contract expires.

Much simpler than it is now, and most of the
flying will be profitable.

 

[BoeingBoy]

This will leave US/HP with Air Wisconsin, PSA,
MDA, Trans States turbos, Mesa CRJ-700's
and 900's, and Piedmont DH8's until the Mesa/HP
contract expires.

[post="271823"][/post]​

That'll be 2013, according to Ornstein...

Jim

 

[wings396]

I agree that the DH-8 is better suited for many markets than an RJ. ABE-PHL was served by DH-8's for many years with very few problems. Now they have ERJ-145's and the 170's making an 18 minute trip with an average of 20 passengers OB.