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well, you lost me on that one...can you try explaining again what Mr Fred said??? /ubbthreads/images/graemlins/tongue.gif [/quote}
Sorry, I should have been more clear. DCI carriers operate on a fee-for-departure basis. That is, Delta pays a carrier say $1,000/block hour to operate a flight from CVG-->RDU. Here's how it was explained to us by Fred Buttrell (DCI head cheese).
Delta pays the $1,000 for the hour and then looks at the revenue (tickets, mail, cargo, etc) generated from that hour. If that only adds up to $900, then Big 'D' loses $100. So, in order to turn this around, Delta will simply start paying $850 for that hour to the DCI carrier. This is possible because the carriers' pay rates are reset every year (you guessed it, in Jan-Feb timeframe).
This means that Comair, who was say operating that block hour for an internal cost of $950, showed a $50 profit (internally). Well, now that they are only gonna get $850 for that same flying, they need to trim $100 of costs just to break even. There are/have been a lot of efficiency enhancements and cost savings that are helping our bottom line, but again, management is going to come to the labor (admittedly a huge cost) to bail us out.
The not-so-subtle threat is that if we don't get our costs (read wages) down, we will probably LOSE a bunch our flying to our competitors, such as CHQ, Skywest, and even MESA. That will translate into transferred aircraft and furloughs of some/all of the 600ish non-furlough-protected pilots on property. And of course the associated reduction in pay/QOL for those that do get to stick around.
Doom and gloomy? Absolutely. And it is in management's best interest to paint it as such.