Old 04-20-2010 | 04:35 AM
  #87  
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acl65pilot
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From: A-320A
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PG, true to a point if you are not on a cost plus contract. With our historical margins over the last decade that means that the mainline balance sheet is net negative plus the profit they are paying for the FFD or Cost Plus Air Service Agreements. It could be argued that under these types of agreements AME-Eagle actually cost AMR less money than DAL's outsourcing scheme.

I had the numbers a few years ago, but the profit that DCi was getting from operating their flights was over 500 million a year. That is a lot of money.

Of course we are going away from this model, but it is going to take something to make these operators willingly give up their profits. What will it be? More jets, jets from other operations? Maybe will will just not renew these contracts when they come due, but that is a long time to be deal with this issue.
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