Originally Posted by
Scoop
Does anyone besides me think the whole DCI system actually hurts Delta financially in the long run?
Yes.
The purchases of ASA & Comair, upgrades to facilities and fleets, strikes and spinning them off were at least $25bn. The company has always struggled to allocate costs across various operators. Conservatively, outsourcing adds 7% to 9% on a CASM basis for overhead and maintaining a redundant operational structure. It would be much cheaper to integrate these operations into a seamless product.