Originally Posted by
NuGuy
Heyas,
No, a Compass divestiture does not affect the flow. The only way the flow changes is if BOTH parties agree.
I don't think the flow, as it stands, would survive at RAH. Failure to maintain the flow would result in draconian 70 seat cuts, which I don't think mama DAL would be willing to deal with right now.
It's interesting to note, though, that DALs most serious competitors, AMR, CAL, and SWA have little or no 70 seat feed, and I've heard serious talk that the whole 70 seat program is being re-considered along the same lines as the 50 seat program. The are BIG DCI cuts coming, and I've heard that this time next year there will be at least one less wholly owned.
Nu
Yes, Nu and we know how that would be. The 76 seat market is a money looser. All those first class seats to is allow mile upgrades. Not too many people actually pay for the FC seats these days. It is bad business, DCI loses money.
Now what does that mean? In this economy I see it meaning continued pressure from DAL management to give the DCI carriers the 100 seat market. Why? Well they have contracts that they need to fill. We need to hold the line no matter how many they threaten to put on the street.
That said, there is a lot going on. Nu did you talk to the DAL-N contract administrator and see what he inferred by the four possible outcomes of CPS in the LEC 1 meeting?
DCI is going to get cut, and a lot. It was to happen this year, but they decided to wait until we had more lift to augment it. Why? Because we do not want to lose market share.
A lot is going on.
This decision on the cuts was just made, and it might not be the last. Like I said, we are really right on the line of whether or not it is cost advantageous to furlough. If we do I see 200-300.