On Your Six
Well-known member
- Joined
- Mar 8, 2004
- Posts
- 4,507
I disagree. Future RJ growth will likely not go to ASA and Comair because they are more expensive alternatives to outside regionals like CHQ and Skyway. Delta could force partners to compete for growth on a cost basis - that will reduce costs at Delta big time - plus, future debt from RJ financings would be reduced considerably. I see no big operational benefit from owning ASA and Comair vs. "renting" them. In fact, Delta could avoid potential HR problems and resulting operational disruptions with Comair (i.e., future pilot strikes) and ASA by spreading out coverage among many regionals who comply with QUALITY STANDARDS developed by Delta.
It worked for Continental - its working relationship with COEX is still strong and it pocketed a lot of cash by spinning it off to the public...
It worked for Continental - its working relationship with COEX is still strong and it pocketed a lot of cash by spinning it off to the public...