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Old 07-30-2013 | 12:56 PM
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From: French-Canadian
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Originally Posted by SebastianDesoto
I talked to a Delta rep at a career expo that was targeted to flight students. She said that Delta is not concerned about attracting to people to Delta but if it came down to it, underwriting loans was on the table...

I cringed a little.
Absolutely, they are not worried about getting folks to Delta. The issue will be getting folks to their regionals, specially the ones with very bad contracts, Pinnacle. If they weren't concerned they wouldn't be considering loans. They will want a certain service time at the regional and for them to compete with what AA or United might offer they must offer more than just an interview.

The regionals won't have the capital or resources to fund new hire loans, specially since they will want them on property earning money asap and this will require a 4 year degree. Mainlines will have to step up and they will want some type of ROI specially since these loans will approach the cost of a mortgage and these guys won't be able to make more than minimum payments for a considerable amount of time. The mainlines like fast ROI as airline management focuses mainly on what is happening today and tomorrow rather than the future. They often don't last long enough, sort of like sport coaches. Investors care for what have you done for me lately, everyone knows airlines aren't long term investments.
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