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...
1. If ExpressJet or SkyWest could compete with what a wholly owned carrier paid mayyyybe. But, the fact of the matter is that EDV's, PSA's, ENY's, and PDT's books are soooooo cooked that it doesn't matter. No one has any idea how much any of these companies make or cost probably. So wholly owned carriers will pay more. If SkyWest could have afforded it, do you think they would have raised their pay more than 1%? I think so. Instead they did it in profit sharing, proportional to company success.
2. Its a good thing then EDV doesn't have a CPA agreement with Delta. They say jump, we say how high. They say NYC, we say yessir how much can we shrink MSP and DTW for you.
3. Most of these airplanes are paid for. In case you were wondering. EV also flys DL owned airplanes. So does GoJet. Republic E170s? Delta owned.
4. No idea how this works but I imagine there isn't a huge different between corporate insurance covering EDV versus EV or SkyWest. You know in their policies that they have language if SkyWest does something dumb with a CRJ, just like if Endeavor does something dumb.