“For a long time it was a seller’s market for regional carriers — there weren’t enough regional jets for the demand,” Delta Connection Senior Vice President Don Bornhorst told the Atlanta Journal Constitution. “We clearly are on the other side of that growth curve now and I would even argue that there are too many regional jets. We have too much lift in Delta Connection. What we’re getting rid of is bad lift.”
Indeed, an analysis of the two programs shows that Delta is overcommitted to 50-seat jets, thus the reason for its grounding more than 100 aircraft over the last few months. In August, RAN predicted that the expiration of current code-share contracts will impact the entire industry with dramatic declines in payments made to regional partners by their major-carrier counterparts. Related Story However, that is not to say major and regional partners will not renegotiate rates as seen with the recently negotiated contract amendment between Chautauqua and American. (See related story in this issue.)
The fate of Delta Connection partners was covered in a Regional Aviation News article in June. Related Story  Mesa Air Group's Freedom contract has since been terminated and Delta recorded a $14 million charge in the September quarter for contract carrier early termination fees.