Re: What am I missing???
prodigal said:
Comair is owned by Delta. Comair is profitable. Comair's profits thus benefit Delta. Comair grows and becomes more profitable. Delta benefits more. . .
Please, surplus1 or someone, what am I missing here?
Comair isn't really profitable, that's what you are missing. Comair is only "profitable" because DL carries a large part of the costs associated with running an airline.
How many reservation agents does Comair employ? None.
How much money does Comair spend on advertising? None.
How much money does Comair spend to maintain a frequent flyer program? None.
Hou much debt has Comair taken on financing planes? None.
How much money does Comair spend on gate leases in places like SAV, CHS or SHV? None.
The list goes on and on. The regional airline business is a great racket....why do think sleazeballs like JO are attracted to it?
However, let me note that regional pilot costs are not the problem. The problem is that the current business model behind the regionals is fundamentally broken. When times were better, DL and the other majors didn't care how much money they dumped into their regionals and how much they lost funding the regionals operations. Now, times have changed and the majors can no longer accept the costs of carrying the regionals. But instead of trying to fix the broken model, the majors will try to cut costs by pitting regionals against each other and trying to squeeze concessions out of pilots and all other employees.