Originally Posted by
Bucking Bar
Wouldn't it be nice if we had management focused on running the best airline they could instead of running a shell game to undermine their labor, trying to take flying away from Delta pilots and conjure up a way to make Endeavor pilots pay for the cost of moving a certificate? They make their own jobs so much more difficult and we shareholders would have liked the $30 billion or so that they spent on DCI, just to sell most of it for pennies on the dollar and just shutter the rest as employees got longevity.
The April 10-Q changed the landscape. Regional expenses are now less only by moving around some accounting.
Regional Carrier Expense
We previously allocated certain costs (such as landing fees and other rents, salaries and related costs and contracted services) to regional carrier expense in our Condensed Consolidated Statements of Operations and Comprehensive Loss ("income statement") based on relevant statistics (such as passenger counts). Beginning in the March 2021 quarter we are no longer performing this allocation and have reclassified the costs presented in prior periods to align with this presentation. This reclassification better reflects the nature of, and how management views, these regional carrier related expenses. This allocation was approximately $900 million in 2020, including $325 million in the March 2020 quarter, and $1.4 billion in 2019, including $355 million in the March 2019 quarter. The remaining amounts in regional carrier expense represent payments to our regional carriers under capacity purchase agreements and the expenses of our wholly owned regional subsidiary, Endeavor Air, Inc.