Originally Posted by
Mesabah
No, Endeavor is losing money right now, this is not reported to the shareholders as losses. It's reported as CapEx, which, doesn't affect the bottom line. The more money Endeavor loses, the more money Delta can report as profits. Obviously there are limits to this; You couldn't pay us $1 dollar per flight, how could you pay 9E employees, or buy fuel.
So its just a tax advantage then? Because it still changes nothing in the end regardless of where they put the so called profits. The mother ship still only makes a certain amount at the end of the day/quarter/year and how DL costs itself has no bearing on that (other than tax advantages I guess, but I don't know the rules on that).