Originally Posted by
gloopy
...Route by route profitability is a great way to buff quarterly numbers but a horrible way to run an airline long term. We will pay dearly for our managers incompetence in the long run, in domestic and international markets alike. While sometimes route reductions and even elimination make sense long term, we are taking this way too far and will be worse off for it.
We are well beyond the point where capacity discipline is driven by financials.
There are strategic objectives that require a smaller capacity footprint in order to pass regulatory muster...
This is where the TA JV protection could help or hurt.
If Delta's future objective is to engage in profit sharing JVs, the TA will hurt us because it sets up a threshold of Delta pilots getting only 75% of Deltas JV revenue share. In a 50/50 JV our negotiating baseline would be for just over 1/3 of the JV flying, whereas the current Transatlantic JV sets our share at half of the JV flying.
If Delta's future objective is to engage in revenue sharing JVs, the TA might help us because it sets up a threshold of Delta pilots getting 75% of Deltas revenue share. In a 50/50 JV our negotiating baseline is for just over 1/3 of the flying, that could be more than 4-flights/week and 175 pax per plane as we have in the PWA right now...We win if the future revenue sharing JV partner has more flights than us, we lose if the future JV partner has fewer flights...
Cheers
George