Originally Posted by
amcnd
1. They (DL) doesn't have to pay for pilot bonuses..
2. Is non wholly owned airline breaks the CPA agreement they can sue them (rember the SkyWest irops deal) don't want to sue your self...
3. Capital expenditures.. buying RJ's hurts big D's credit score.. higher interest on there planes.. Let someone else pay the bill..
4. Corporate insurance goes up...more exposure...
Outdated thinking, all those things had more value 5 years ago and beyond.
1) pilot bonuses- that's what's making it work. Do you feel the non-wholly owned can compete with Delta or the American wholly owned in this regard? They're all locked into contracts that would probably have to be renegotiated to make that possible. Good luck with that.
2) precisely why the trend is going towards wholly owned lift. Gives them more control of their product and more flexibility. 200's for example, Delta needs them right now. So why would they want to enter into a long ASA when their plan is to reduce that fleet? Now, that could be bad if there aren't any replacements.
3) I doubt that's much of a concern to Delta these days. Maybe it was post bankruptcy. But Delta's net worth is improving every day. There would only be two carriers that could finance their own equipment. And I don't think Delta wants to lose that control. That would give Skywest and Republic too much leverage.
4) I'm not sure what the difference is here