Originally Posted by
forgot to bid
True. Here's a question,
Step 1 - Today
Step 2 - ?
Step 3 - Regionals limited to <40 seats, < 150 nm, < other stuff.
When it comes to Step 2, how do you overcome two things:
A) A Delta management BOD, et.al., who know outsourcing holds down crew costs, and
B) A lifer on the regional side that would sue ALPA if outsourcing was eliminated.
Let me say this, the only step 2 that I think works is when the true total cost of outsourcing exceeds it's value. Sure the cash cost could exceed income, but when it would be cheaper to have it in house even if it means losing the means to hold down mainline crew costs, then I think they'll do it.
The death of the 50 seater was about to provide that opportunity, then we threw them a lifeline and added 70 more jumbo RJs that are more profitable, lower CASM, better product, etc. Outsourcing got a desperately needed lifeline to continue for a long time.
We screwed up.