proposed delta cuts

[skiddriver]

Medflyer,

What are the differences in pay rates between ASA/Comair and Skywest/CHQ? I bet a pretty good gap - especially when you consider Skywests CRJ-700 rates. What about financing charges on the CRJs, etc.? Delta doesn't cover anything for CHQ and Skywest. I have flown on both Comair and CHQ recently for repositioning, and service levels were identical... If Comair and ASA remain expensive vs. Skywest and CHQ, I'll bet a lot of future growth is outsourced to the cheaper alternatives. There will be a lot of pressure to close that expense gap if you want any growth going forward...

But you're forgetting that the non-wholly owned DCI partners (all of whom are reporting profits) take their profits away from Delta Inc. ASA and CA black ink flows back into the corporate coffers.

And you have yet to demonstrate that ASA and CA cost more to operate a flight than the other DCI carriers. On a superficial level, you might try and say that the pilot's wages at CA are higher, therefore CA is more expensive. But if CHQ or SKW are turning a profit (which they have been) on DCI flights, then Delta is paying for all of their labor, aircraft acquisition, administrative, and fuel costs - PLUS adding a profit margin on top of that. You can't make an accurate comparison of the costs and profits without access to financial info I don't think you are privy to.

If you asserted that Delta would make more money if they paid ASA and CA pilots less, I'd agree. But that assertion works for any airline and pilot group, making it less relevant when you try and compare the efficiencies of the DCI carriers.

 

[FDJ2]

But you're forgetting that the non-wholly owned DCI partners (all of whom are reporting profits) take their profits away from Delta Inc. ASA and CA black ink flows back into the corporate coffers.

ASA and CMR's profits do not come from passenger revenue, it comes from cash DAL pays for the lift ASA and CMR provide, same goes for the non- wholly owned. If DAL were to pay CMR $5000 for a flight, CMR might make a profit on that, but that doesn't mean that DAL received $5000 in revenue from the passengers on that flight.

 

[skiddriver]

ASA and CMR's profits do not come from passenger revenue, it comes from cash DAL pays for the lift ASA and CMR provide, same goes for the non- wholly owned. If DAL were to pay CMR $5000 for a flight, CMR might make a profit on that, but that doesn't mean that DAL received $5000 in revenue from the passengers on that flight.

Nice dodge. Delta can either pay ASA/CA for feed, and keep whatever profit is made on that leg, or pay the non-wholly-owneds and give the profit to them. CHQ and SKW have been reporting corporate profits, which means that Delta and their other employers are giving up bucks they could have kept in house. CMR doesn't make a profit. We pay our expenses, and any profit goes to Delta. CHQ, SKW, etc. take their profit and Delta just gets the feed.

If the non-wholly-owneds were consistently reporting red ink, your argument would hold water. Unfortunately, they are showing profits.

 

[amcnd]

I use the work "TAKE" because Eagle was flying these airplanes and the APA tryied to move them to the AA certificate. Is that not "taking" them? As for ASA/Comair getting 100 seat aircraft in a BK. This was'nt the case at United or all the UX airlines would be flying them.

 

[bvt1151]

This from Aviation Week:

CASM's for Q4 2003

ACA - 16.2
Air Wisconsin - 14.7
American Eagle - 13.5
Sky West - 13.4
Express Jet - 12.9
ASA - 12.0
Comair - 10.9


Comair has lower CASM's (unit cost) than ASA, and yet ASA was awarded aircraft because mother "D" said they had lower costs. General and clan (you know who you are) bought it hook line and sinker that Comair had the highest costs in the industry without even doing the research. And, yes, those costs include all financing, reservations and gate fees. Delta claims that Comair's costs are the highest because their pilots are paid the most, but apparently even AviationWeek disagrees with that. What they didn't mention was that ASA has higher costs than Comair, and that the 25 aircraft would be applied to some of the ATR's leaving.

 

[michael707767]

This from Aviation Week:

CASM's for Q4 2003

ACA - 16.2
Air Wisconsin - 14.7
American Eagle - 13.5
Sky West - 13.4
Express Jet - 12.9
ASA - 12.0
Comair - 10.9


.

Any seperate costs for DAL, ASA and CMR are meaningless. Delta does not break them out for financial reports and any costs you see do not come from Delta. What was AVWeeks source for those costs? I'll bet you it was not from any reported financial date from Delta.

 

[bvt1151]

Any seperate costs for DAL, ASA and CMR are meaningless. Delta does not break them out for financial reports and any costs you see do not come from Delta. What was AVWeeks source for those costs? I'll bet you it was not from any reported financial date from Delta.

I've already explained why these reports are accurate many times. Most notibly that these numbers are not reported by Delta, but rather by ASA and Comair seperately under penalty of large fines should the information be incorrect. Do a search, you'll find it.