Originally Posted by
cybourg10
Are you saying Compass is their to keep the other DCI carriers "honest" with their costs? How many DCI carriers are required to be in the bottom two of costs? (I know ASA is one). If that is true talk about whipsaw......How is Compass the cheapest, is it only because of the junior labor costs or is Delta fudging the numbers to keep the others in line?
Delta won't have to "fudge" anything. The contracts with Skywest and ASA are written in such a way the Delta will have the right to alter the contracts or the carriers will suffer a large penalty. ASA / Skywest cannot compete with the cost structure of Compass or Pinnacle, just as you say, due to cost of employee longevity. It’s not right but it is what it is.
This is the main reason to not make a career of a Regional airline. Regardless of scope or any other issue, in the long run, unless you are willing to work for peanuts you will be replaced by someone who is.
The only way to fix this whipsaw is for mainline pilots to recapture and control the flying.
Last edited by vprMatrix; 08-26-2009 at 11:01 AM.
Reason: Add