Originally Posted by
BMEP100
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.
When comparing UAL to DAL, don't forget that virtually
ALL of DAL's ground staff (above and below the wing) except for MX is "outsourced" to
DGS (DAL Global Services). DGS employees are non-union and a majority are part-time.
Not only is it a lower actual cost of labor, but it also ends up in a separate entry from labor (pilots, FAs, Mechs) on the financial report. Meanwhile, all the UA hubs and most of the large stations are staffed by mainline employees.
One can compare UAL to DAL, but it's not apples-to-apples without moving some items around on the spreadsheet. But yes, DAL is still lower.