Originally Posted by
acl65pilot
Super,
Ridding themselves of FFD does not mean stopping third part lift. What it means is making these airlines risk sharing partners in the flying. This will happen with what are now pass through costs as well as the profit.
I guess we could determine that they would be JV's because in effect that is how much of it could be set up. The difference is that they would be flying for the DL code alone. Point is that these airlines will be exposed to the profit/loss side of the equation.
The trick come in with routes that these airlines will refuse to fly. Say ATL-CSG. It may not make money for DAL so it will not make money for SKW. How will DAL for them to fly a route that will not make money for them without guaranteeing them a profit.
Thoughts to ponder.
Delta already did this with ExpressJet Airlines for flying out of LAX. It lasted less then 16 months, and was mutually terminated. It's going to be interesting how the regional picture will turn out when these agreements start to replace the fee for departure agreements.