Gman5000

Delta Ends Contract with Pinnacle: What's the Impact on Regional Carriers?

As xavier mentioned, Freedom/Mesa got a preliminary injunction against Delta to maintain the status quo on the 50-seat flying until the court hearing. And the Freedom 76-seat flying is not affected. Nothing has been decided there on the 50-seat flying, so it does not in any way portend what will happen with Pinnacle. Pinnacle is also different in that they're flying 76-seat RJ's with First Class seating. Delta wants to rid itself of 50-seat RJ feed, as well as the number of Delta Connection carriers, and it wants to sub out 76-seaters for 50-seaters where it can. So it rids itself of Pinnacle in this situation and gets rid of a Delta Connection carrier. Here's my guess as to what happens. Delta and Pinnacle settle and Delta takes the 76-seaters from Pinnacle and gives them to another Delta Connection carrier. Why will Pinnacle agree? One, all of the default issues cited in the article. Two, and more importantly, Pinnacle is a major Northwest Airlink partner and receives a substantial portion of its income from Northwest. Delta will own Northwest in 6 months. It's better for Pinnacle not to bite the hand that will feed it.

Why will Delta agree to take 76-seaters when they're trying to reduce RJ lift? Remember, Freedom continues to fly for Delta the same 76-seaters as Pinnacle. Might Freedom settle with Delta and agree to reduce the 34 50-seaters that are the subject of the dispute, with Delta dangling a carrot of 16 more 76-seaters to add to the 14 Freedom already flies for Delta? Notice Delta didn't take this action against Pinnacle until after the Freedom injunction. Might this be "Plan B" for reducing 50-seat lift with Freedom while also reducing another Delta Connection carrier by removing Pinnacle?