Originally Posted by
Scoop
Does anyone besides me think the whole DCI system actually hurts Delta financially in the long run? I am not just talking about labor costs but basically Delta is subsidizing the training costs of our future competitors.
Take Breeze or whatever it’s name is - They will lure away very highly qualified Pilots from DCI who will be willing to work for absurdly low wages. This will enable Breeze to undercut Delta on some routes. I know I know - those aren’t the customers we are chasing. To that I say BS! I guess Valujet/AirTran didn’t impact us at all. I guess Jet Blue doesn’t impact us at all. Even though we are chasing the business traveler it would help all of the legacies if there was not such a downward pressure on ticket prices.
Ticketbprices are high right now you say. Correct says I, but there was a time not to long ago when airlines were flying passengers for cheaper than it costs to provide that seat - who is to say those times will not return.
If all the legacies brought all of their connection Pilots onboard there would be a lot less Pilots willing to work for absurdly low wages. In fact the legacies should proactively recruit Pilots from all of these ultra low paying start ups.
It seems Jet Blue, Allegient, and Spirit have greatly improved their contracts but now here comes Breeze to run the tried and true program of starting everyone on super low first year wages and have an artificial cost advantage for many years. I hope I am wrong - thoughts?
Scoop
i don’t think it hurts them enough to worry that much. I remember seeing DLs budget back in 2016. Only 8% of there fiscal YOY budget went to DCI and that was when there were many more connection carriers. I believe labor cost alone were 35-40% at mainline, so again the gran scheme of things it’s not significant enough for them to care IMHO