Originally Posted by
shiznit
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).
Thats not how for the most part it has worked. Delta takes on the underwing for DCI. They don't generally hire additional people to handle that. Their head count remains static at the station. DCI gets to unload a bunch of employees and reduce their costs. They pay Delta. Overall the entire operation is much more efficient. DCI does not charge more on the cost plus because Delta is billing them for the services. They are already paying Delta less for those services then it cost them originally.
As far as why not pilots the answer is simply. There is no reduction in headcount. In fact under mainline work rules your pilot headcount goes up quite a bit.