Originally Posted by
poorflyer
This! It took me until the PHX base opening to realize the irony that BG used the we can't support such a small base excuse for losing aircraft, but is super happy about opening an arbitrary base that won't even have any airplanes truly "based" there. They truly do lie through their teeth just to keep us calm while they squeeze all the cash they can for Hulas.
I think it’s even scarier then what you state here. Just running some rough numbers here.
Delta firing on all cylinders does about a 13 percent net income margin (AA and UA) even worse.
Given deltas margin at the time of sale to compass where around 7 percent my guess is the max they would have allowed CP of all metrics are met are Cost(at the time plus) 4 percent. Pilot costs alone do to recruiting and pay have gone up substantially higher then 4 percent in that time. In addition MX costs have risen given the age of the fleet.
Result = TSH or CP may no longer in the current environment be profitable. They may want to deliver on all promises or fix the issues in the grievance but the capital may not even be there. Given the private nature of the business there is no real financial transparency but I suspect the balance sheet is no longer viable or sustainable.
I don’t think a CP lifer is even a possibility