Re: What is the benefit of full ownership???
Heavy Set said:
Playing devil's advocate - why should Delta be responsible for all of those regional airplanes and employees when it doesn't have to be? Why shouldn't Delta outsource to lower bidders like Skywest, CHQ and Skyway given that they do provide good and dependable service like ASA and Comair? The LCC environment has changed ALL OF THE RULES and lower cost will be the name of the game.... Never say never. I am sure DAL management is already considering these sobering facts...
You know...you're right. DL really shouldn't own anything....they should just become one big holding company.
Why not spin off the international operations to Air France? Look at the list of benefits.
1) You get cash from the initial offering (considering how profitable the General says international is, DL should easily recoup 1-2 billion)
2) You can maintain the same operational benefits as DL currently gets the codeshare with AF....only more.
3) DL can shift debt to the new "Delta International (operated by Air France)" spinoff
4) Reduce future debt by not having to buy any of those expensive 777s
5) You could force Air France to compete for the work with any other international carriers
6) The French may be a bit rude, but AF's service has to be better than DL's current piss-poor international service.
7) Fewer HR headaches...if AF strikes (and being French you know they will) increase Alitalia feed
Why should DL be in charge of all these complex international operations? Why shouldn't DL outsource all international flying to the lowest bidder (like Air France, Alitalia or Virgin) given they already provide dependable service which is superior to DL's existing service?
You know Heavy Set, if you can't make a living flying, I'm sure there would be room for you in Management. You'd make your big papa, Frank Lorenzo, proud.
I'm sure DL will probably sell Comair or ASA off eventually and it will probably blow up in their face...just like every other move DL management has made.