Quote:
Delta typically gets Board seats with their investments. Originally Posted by sailingfun
I agree, however if they reorganize yet again what does that leave Delta?
Delta also just picked up a strategic asset in the form of Rick Dominguez to manage these relationships.
The carriers are making operating profits on good revenue growth. I do not have a read on what is getting consolidated into their net losses, but it is often times the case that those long-tail expenses get renegotiated. Revenue and new cash investors always have the catbird seat.
What really matters is the numbers we in the general public will never see. What is the marginal profit increase from GOL and Aeromexico passengers flying on Delta? What are the sales created by the JV footprint? How much are prices increased by a market leadership position?
I ran a report looking at JV's during the European financial crisis. While everyone declined, the JV's declined the least and rebounded the fastest. The market strength has only improved as Delta has gotten better and better at managing these things.