Originally Posted by
B767
Thank you. That did help. However, you said SKW does not use money from DAL to finance UAL flying or aircraft. Do you know this as fact or just assuming? Is it in a contract somewhere? Cause I'm pretty sure SKW paid UAL quite a handsome amount of money to keep them, UAL (if i remember right...$80 mil or was that another airline?) afloat. Was that $80 mil all generated from UAL alone? Dead serious question. Not trying to pick a fight or anything.
You are kind of bluring lines together here yes back in the early 2000's many regionals did give there Legacy partners money and in return they got more flying. I can't remember amounts though, but Republic did this as well with US, that is how we got started in the 170 bussiness. In return for cash US basically gave us Mid Atlantic.
The majors sign a contract and as long as that contract is complied with the Legacy has to pay the regional. Once the regional gets the money it is theirs, they can use it however they like. DL does not care if SKW uses its money to buy new aircraft for UA becasue the contract is in compliance. If DL wanted new aircraft they would renegotiate with SKW and a deal would be hammered out and SKW would go buy airplanes for them.
I'm not sure if I'm getting my point across but it is a bussiness with contracts.
Anyways if you need more PM me were kind of veering off of the thread topic here.