Originally Posted by
jayray2
Maybe it is just a matter of semantics but by default since Delta owns Mesaba aren't the employees essentially employees of Delta? Mesaba's bottom line is Delta's bottom line in the end. If tomorrow Delta absorbed Mesaba, the profit/loss Mesaba made would be that of Delta's. Mesaba exists only for the benefit (and the detriment) of Delta. It is a blurry line but in a way, yes Mesaba employees are employees of Delta. The check might not say it but that is where the money comes from and that is who calls all the shots.
Actually, this argument has been made about Comair and before that, ASA. In the end, no, they are not employees of Delta. As much as some people want to believe it, according to the FAA and IRS, they are not employees.
Mesaba's losses, and those of all the DCI carriers, (pass through costs,) are already shown on Delta's bottom line. Their income however, is not. This does help Delta Inc. as they can use the loss to a tax advantage.
While I empathize with those looking at the loss of a job, you need to remember that this how the industry works nowadays. Regardless of where the money comes from, or who calls the shots, we are all digits to be manipulated to get the maximum output with the minimum cost. The heyday of the industry is long past and anyone who jumped in without realizing the potential for this to happen didn't do their due diligence.
Besides, wasn't there talk of the Saab's going away earlier in the year? Unfortunately the writing was on the wall for all the DCIs as to what they could expect, regardless of who owned them. Shrinkage and consolidation are the words of the day, and the price to be paid for the rapid growth of the early '00s. The problem is that like a Ponzi scheme, it's the late comers who pay the price, not those who benefited the most.