172driver
Well-known member
- Joined
- Apr 4, 2002
- Posts
- 744
At the risk of sounding ignorant, can someone break down for me the difference between the wholly owned regionals (CMR, ASA) and the contract carriers (CHQ, SKYW)?
What are the advantages and disadvantages to Delta, for instance, of allotting flying to a company they own as opposed to one they contract with? More profit, more risk, better writeoffs, ownership of assets? What do they pay a contract carrier and who sees the money from the tickets? Why would a contract carrier ever create more profit than a wholly owned, since there is another hand in the cookie jar?
What are the advantages and disadvantages to Delta, for instance, of allotting flying to a company they own as opposed to one they contract with? More profit, more risk, better writeoffs, ownership of assets? What do they pay a contract carrier and who sees the money from the tickets? Why would a contract carrier ever create more profit than a wholly owned, since there is another hand in the cookie jar?