Originally Posted by
TenYearsGone
Ohhh Brother,
My questions to the people in the know are: Are we morphing into a ticket broker? Is management getting wealthy by farming out our flying? Wouldn't management become more wealthy growing organically? I am getting a little concerned with the SKYTEAM paint also. Could it be that SKYTEAM is the airline we are going to work for, in the future?
These are my main questions and concerns. Our outsourcing makes no sense to me. If the business is there, why dont we compete and take it away? Please Fire away!
TEN
TEN,
In a word, "yes." Our outsourced flying is more profitable than the work we perform ourselves.* As we further and further decouple from the value of our flying to this airline, I wonder when someone is going to ask the obvious the obvious question; "wait ... you want a raise based on the profits earned by another pilot group?"
It goes without saying that as Delta fails to invest in an efficient 100 to 130 seat jet, the ongoing cost of the inefficient Douglas jets will increase the pressure to outsource. We've got to get the right tools to compete.
* Delta's 10K suggests outsourced flying is responsible for 21% of revenue, but generates 47% of our operating profit. If true, this gives some idea of the cost to "take it back."
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Perhaps Sailing, Slow, or Alpha will share the real numbers that helped reach the decision that was made in the Compass matter. It would be a very productive discussion.
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