Delta's new low cost profitable division

[jetflier]

As NWA becomes DAL new low cost division with $3 billion in cash, it stands to reason as fuel costs continue to rise that new flying would be more profitable if flown at NWA.

With lower costs, Richard can continue to create a better bottom line with the airlines operating as two divisions.

That would solve any SLI problems.

 

[IronCityBlue]

As NWA becomes DAL new low cost division with $3 billion in cash, it stands to reason as fuel costs continue to rise that new flying would be more profitable if flown at NWA.

With lower costs, Richard can continue to create a better bottom line with the airlines operating as two divisions.

That would solve any SLI problems.

I don't see either group winning out in such a scenario, but particularly the NWA pilots. High oil will just accelerate the parking of 9's at a rate most likely faster and definately sooner than the arrival of 787's. In the meantime, pilot cost differential is not great enough to justify 25-30% more fuel burn per ASM compared to MD-80's, let alone the NG at an additional 20-30% savings over that.

But if management's prophecy of win-win-win is true for all, they should have no problem putting no bump/no flush, pay and furlough protections in writing for all pilots. Afterall, this is all about pursuing growth opportunities for the workers, shareholders and customers, isn't it?