Old 04-20-2019 | 01:34 PM
  #39  
BMEP100
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From: Tom’s Whipping boy.
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United’s administrative (non operating) costs are higher than Delta. We outsource everything it seems, but yet still have large departments with managing and senior directors to manage the outsourcing. I’ve never seen such a bloated management structure in my life.

Years ago I was present during a civil trial where an industry expert witness was testifying about Delta’s apparent heigher costs. Delta looked bad on paper until you got into the details.

They had more staffing and costs in some departments, but turns out, they built their own aircraft tugs, forged their own compressor blades for their own JT-8 engines, etc....

United on the other hand does very little in-house, but still has higher cost structure. A good example is the Flex spendings accounts for health care. It is outsourced to Hewitt, who in turns outsources most of it to the Phillipines.... which is why it’s such a crappy deal btw. Yet there is an Managing director and staff in Chicago.

And yes, Delta’s BOD was wise to make the merged DL/NW H.Q in Atlanta where everything costs less than MSP.

UC board chose to keep the HQ in one of the highest cost cities, and most politically corrupt, in the nation.

It all adds up. And yes, DL being in Atlanta does afford them less union involvement. Do you really care? Are your yard man, plumber, barber, baker, butcher, house painter.......union members?
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