ASA Furloughs Not Prevented By DAL Deal

Jan 12, 2009
By Andrew Compart/Aviation Daily

SkyWest reached an agreement with Delta to have Skywest subsidiary Atlantic Southeast Airlines operate 10 CRJ900 regional jets as Delta Connection, but the additions were not enough to help the regional carrier avoid the first furloughs in its 30-year history.

ASA is furloughing 80 of about 1,700 pilots, effective Feb. 1. An airline spokeswoman, describing the cuts as a “last resort” after the carrier fell short with voluntary leave and early retirements, said the furloughs are “a direct result” of economy-driven reductions in demand and capacity.

“We’re just really working hard on getting through this hard economic time and getting these pilots back to us as quickly as we can,” she added. She said the agreement with Delta regarding the CRJ900 did help lessen the job losses.

The CRJ900 aircraft were previously ordered by Delta, which is scheduled to receive them between February and May. ASA, which flies for Delta out of its Atlanta hub as Delta Connection, eventually will use the 76-seat, two-class CRJ900s to replace 20 of the less efficient ASA-operated 50-seat CRJ200s, but not right away. ASA will take those 20 CRJ200s out of service for Delta between April 2010 and August 2010.

ASA said it will evaluate how to redeploy the CRJ200s “based on market conditions at the time of removal.” But ASA added that its options may include subleasing the aircraft or operating some of them under pro-rate agreements that provide it with a portion of the fare revenue but also some of the financial risk.

ASA currently operates 110 CRJ200s and 39 CRJ700s.

Bradford Rich, SkyWest’s executive VP and CFO, called the deal “a good-faith effort by Skywest, Inc., to help Delta right-size its fleet.” But he noted SkyWest also expects that adding the CRJ900 to its fleet portfolio will “solidify ASA as Delta’s primary regional carrier in Atlanta.”

Photo: Bombardier