I know we like to think that outsourcing is all about us because well it is!

In reality there is a balance sheet reason too. Taking jet leases and or debt off of the balance sheet and making other airlines assume the note makes our balance sheet have less debt and commitments on it. It allows a better debt rating which works well for a corporation. It becomes a cash flow equation which DAL has no issue with. The debt is off the balance sheet and assumed by other operators which allows DAL the scope of a larger route network without the cumbersome debt. It allows us to be bigger that we would be as a stand alone without feed. Code shares and JV's do the same thing, but on a different level.

This type of accounting saves DAL untold billions of dollars in debt service, lower interest on other debt etc. That is what I suggest that when DAL cannot pay for fleet renewal of its narrow body fleet, ALPA's answer is that SKW, etc can finance your debt and you can cash flow it as you have been doing, but we will fly the jet. The difference is SKW becomes a holding company probably making close to the same money as they do now, but they do not have to worry about flying these jets. If DAL still wants to pay for them to maintain them, well that is a topic for a different discussion.

I am willing to give DAL the balance sheet health they want but I am not willing to allow more jets to be flown by non-seniority listed pilots. This is one way DAL and DALPA can have it both ways. If airlines like SKW do not want to play ball, then other companies will be formed that will be happy to take on aircraft debt for a service fee. I hope it is all the rage because we will be flying that metal. DAL has the cash flow to do this and it is really what we are doing now. They get the benefit of diving us in the process.