Originally Posted by
Airsupport
Pinnacle's nwa contract was signed by the same people who moved from nwa to delta. Pinnacle's delta contract was signed while RA was in office. So there was no error by the previous leaders. This is exactly what he wants. The contracts they want to cut are coming up and wont be renewed. The wholly owneds are going to take the biggest slash. RA doesn't want the regional flying in house. That is the problem. He cant do it in house cheaper than he can by contracting it out.
It was all set up before he left. While he was ceo we got a new contract with nwa good till 2017. He left nwa and went to united health care. Pinnacle then switched to united healthcare for insurance when he became ceo. then he leaves united health care and we drop them as our insurance provider. just a little after he steps into office at delta we get a 900 contract. this stuff is years in the making.
We shall see. I guess we agree to disagree. I find it interesting that you think 9E will be safe from the CRJ200 chopping block. Granted 9E is much cheaper to operate than XJ but the bottom line is DAL does not keep all the profit from 9E operation. XJ has gotten expensive with the very top heavy pilot roster but DAL gets to keep all the profit. Until some DAL beancounter shows us the number breakdown, you can't make such a blanket statement that DAL cannot do it cheaper inhouse. At any case even if contract carriers can do it cheaper, that saving is wiped out if you have to pay them guaranteed profit per contract.
Some of the things may have been in the making for the past few years or so but the next short term tenure of RA is a different ball game. Different dynamics and economic situations makes it for a different strategy.
I just hope I move on before the next big roller coaster ride.