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Old 01-06-2011 | 09:57 AM
  #56121  
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shiznit
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Joined: Feb 2009
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Originally Posted by sailingfun
This is not quite correct. If you get a chance ask to speak with a station manager at a consolidated station. You will learn that we charge DCI for every single service we provide. Its a huge profit source for the mainline. If the CLT station sprays the frost off the wings of a ASA jet in the morning they are charged 750.00 dollars. They are charged for every departure for the agents time. They are charged for baggage handling and all other services. By consolidating they have reduced the overall head count at many stations. They plug the DCI flights in between mainline flights when workers were watching TV In the lounges and then they charge the DCI airlines for everything we do. This has a substantial positive effect on the bottom line at many stations.
If you bring the flying back to the mainline you lose that revenue stream. If anything the consolidation may have shifted the cost equation more in favor if keeping the flying at DCI.
I'm normally with you but Sailing, come on...

Say DAL pays ASA cost +10%.

ASA already increases "cost" for de-icing, ramp, etc. They are going to keep their 10% margins (minus performance penalties of course).

DAL is just "taking back" the money it had in the first place.
(and in turn the IRS is getting a crack at that money twice, leaving less for us).