Indy Air, Bos

[SVQLBA]

Yup - the issue with the 328Jet is the wing. It's straight (no sweep) because it was designed as a turboprop even if they had the idea of hanging fans off it early in the program. Straight wings give you great lift but drags rises steeply as speed rises (hence why almost all other jets have swept wings). It's a bit faster than the prop, but not as fast as some of its RJ bretheren that have swept wings.

 

[funguy2]

Delta chose to terminate their Delta Connection agreement with ACA (they had the right to do so at any time with no cause given 6 months' notice), but ACA had a corresponding right to require Delta to assume the 328Jets if Delta were to do so. I had heard the same about Skyway assuming the 328Jet flying for DCI, since they're one of the few (if not only) other operators of that type in this country (Great Plains is defunct).

sfb: I think you have the sequence down better than I did. I believe you may be right about ACAI's "put-back" option to DCI. I recall reading this same clause in Chautauqua's contract info w/ DCI in the information provided as part of the Republic Holdings (who owns CHQ) IPO.

 

[X-U]

These Express agreements just keep getting more interesting. I saw the other day that DL purchased an equity stake in Republic, 12% I think. So when US pays CHQ and REP a profit-guaranteed fee-for departure, some of the bucks go to DL.
Also seems like a defensive move for DL to protect CVG, since REP has plans to operate out of SDF. Unless the major partner owns, or at least has some equity stake in the regional partner, they run the risk of waking up some day and seeing an instant competitor in their hub, a la UA and IAIR.

 

[sfb]

These Express agreements just keep getting more interesting. I saw the other day that DL purchased an equity stake in Republic, 12% I think. So when US pays CHQ and REP a profit-guaranteed fee-for departure, some of the bucks go to DL.
Also seems like a defensive move for DL to protect CVG, since REP has plans to operate out of SDF. Unless the major partner owns, or at least has some equity stake in the regional partner, they run the risk of waking up some day and seeing an instant competitor in their hub, a la UA and IAIR.

I suppose Delta makes a profit indirectly, in that profits at CHQ are good for the value of RJET shares, but I don't know that they're paying out dividends to equity holders at present. Of course, nothing (aside from lack of funds for investment) keeps UAIR from making an equity investment in Republic, either. DAL did manage, as part of its Delta Connection contract with Chautauqua, to get several million warrants to purchase shares at a price which ended up being lower than the IPO price for Republic, but one could argue that was just smart negotiating.

 

[funguy2]

Also seems like a defensive move for DL to protect CVG, since REP has plans to operate out of SDF. Unless the major partner owns, or at least has some equity stake in the regional partner, they run the risk of waking up some day and seeing an instant competitor in their hub, a la UA and IAIR.

Doubt that its a "defensive" measure, as Republic Airways will fly anywhere the contracted major tells them to, just like Chuatauqua, Mesa, SkyWest, and others do.

DAL acquired Comair and ASA to prevent exactly your suggestion... Comair was so big at CVG, folks were beginning to think, "Acquire a few 737's and we have an independent hub..." So DAL acquired them and then got stuck with a 90-Day strike. In this regard, UAIR's complex Express arrangement works well... A strike at Mesa, for example, would be easier handled than the Comair strike as UAIR's Express carriers are more "mixed" than DAL's were... DAL has learned this lesson, and now mixes Express carriers at all its hubs, as opposed to focusing ASA at ATL/DFW, Comair at MCO/CVG, Skywest at SLC, etc... as was the case at the time of the Comair strike.