Originally Posted by
skywatch
Lots and lots of misinformation on how the agreements with the regionals work. Here are the facts.
All of the regionals (WO and contract) work under a cost plus arrangement. They get reimbursed for the costs of operating the flight, plus a set margin, assuming they hit the pre-determined performance targets. Period. As long as regional airline X hits the completion/A14 numbers, regional X makes money. Period.
Not entirely true. Compass is given a budget at the beggining of the year and expected to operate at or under it. No fee for departure.
Compass does not show porfits or losses as a company. We only show up as a line on delta's finacial reports.