Originally Posted by
slowplay
The DCI flights operated by Chatauqua are capacity purchase. DAL does all marketing/pricing/scheduling. If the flight doesn't operate or doesn't operate within DAL parameters, Chatauqua doesn't get paid or has their payment decreased.
For you RAH and RJ haters, this looks full of win. RAH Frontier gets direct competition for their money losing branded service from one of their own and Delta gets the revenue. If they cancel too much or have poor operational performance, they get their CPA penalties applied.
Except -- Until Frontier backs down, Delta pays more for the Chit flight than the revenue it brings in. We lose money.
This is Delta dumping capacity on a route to scare off a competitor that Delta helped create.
Its insane.
I guess Anderson and Moak thought Frontier would stick to Denver and only chip away at United. WRONG.