Originally Posted by
Bucking Bar
Here's the 8K in case anyone questions the math.
EDGAR Pro
Contract Carrier arrangements brought in 21% of our revenues and delivered 47% of our profits. That pretty much explains why we've got DC9's and they've got E195's. That explains why our most prolific widebody is a type certified in 1978. How much more could mainline make if we would invest in a current generation fleet?
For almost my entire life, I've seen mainline managed in a fashion which most resembles a business liquidating it's core assets as they have been used up. We could use (and I do expect) a large airplane order this year.
I totally get what you are saying with bringing the percentage of mainline airframes, seat miles, pilots, etc. way up from wherever it is now.
But what exactly does it mean to say that a contract carrier brought in a certain percentage of revenue or profits?
What I mean is -- a family buys a ticket on Delta.com to go from their home in Charleston, SC to visit relatives in Eastern Europe, Bucharest to be exact. After Pinnacle and Air France get them from CHS to OTP, a revenue and profit can be tallied. But how is that contract carrier's revenue tallied up?
Let's say the family paid $5,000 and their itinerary was:
CHS-JFK Pinnacle
JFK-CDG Air France
CDG-OTP Air France
OTP-AMS KLM
AMS-ATL Delta
ATL-CHS Delta
With only one leg being on a 'contract carrier', three legs being on an international codeshare, and two legs being on actual Delta, how is that one leg on the contract carrier accounted for in terms of revenue and profit?
A percentage of the total $5,000 airfare somehow...in miles? In what?