Originally Posted by
skywatch
Carrier X has higher labor costs, and it costs them $1500 to operate the flight, so Delta pays Carrier X $1500 plus $150 margin or $1650 to operate the flight. Overall, Delta loses $150 to operate that flight. Carrier Y, however, is a "bottom feeder" and Delta only has to pay their costs of $1200 plus $120 margin or a total of $1320 to operate the flight. Now Delta makes $180 to operate the flight.
It is that simple. Either make $180 or lose $120 to operate the flight is a no-brainer. That is why the "keep it in the family" argument does not work.
You are trying to argue "owned vs contract", but you're using "higher pay vs bottom feeder" numbers to prove it. Are you saying contract regionals are bottom feeders and wholly-owned regionals are not?