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Delta to Terminate Freedom Airlines CRJ-900 Delta Connection Agreement

Posted on: Wednesday, 6 August 2008, 12:00 CDT

The Mesa Air Group has received notification from Delta that it is terminating Freedom Airlines's CRJ-900 Delta Connection agreement, alleging that it failed to maintain specified operational performance, as outlined in the contract.

Mesa disputes these allegations and intends to defend its contractual rights. It believes the cancellation was driven by Delta's stated intention to reduce capacity and its inability to reduce aircraft at its wholly owned Comair subsidiary without incurring significant ongoing expense.

Freedom Airlines currently operates seven CRJ-900 regional jets for Delta Connection, with a further seven aircraft scheduled to enter service by May 2009.

The company subleases the aircraft from Delta for $1 per month per aircraft and these aircraft will be returned to Delta in connection with this termination, with no further financial obligation to the Mesa Air Group.

Jonathan Ornstein, chairman and CEO of the Mesa Air Group, said: "For many years Delta has built a reputation of working closely with its regional airline partners in a spirit of co-operation and good faith. We are disappointed to see that Delta now appears to have chosen a different approach with its regional airline partners."

Source: Datamonitor

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