Thread: Compass updates
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Old 08-20-2014 | 08:03 AM
  #4134  
gojo
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Originally Posted by HAL39
I'd assume you're referring to the days when Comair had the lion's share of DCI flying? I could understand that, I mean that's why DL currently has their hands in almost every regional airline's pie. Diversifying their regional portfolio gives DL more leverage when it comes time to negotiate CPA rates. However, with regards to Compass and the acquisition of AA lift, your point strengthens mine. We're not getting more lift for DL, hence they don't need to worry about putting all their eggs into one basket. The distribution of eggs to baskets hasn't changed. They get to keep their regional portfolio diversified, meanwhile our costs are decreasing at the expense of their competitor (AA).
Yes, you're spot on. My reply was directed at the guy that said because of economies of scale that would be good for Delta. It may provide lower ASA's, but Delta looses control and gives Skywest more leverage. This lesson Delta learned from Comair