Prepare yourselves… 2023 AEs
#2101
Moderator
Joined APC: Dec 2007
Position: DAL 330
Posts: 7,017
Delta tends to need a business case for any decision that costs money. It is possible that one data point in their business case calculation is a projection of how many paid moves a new base would generate. If this is the case, then people that are willing to move is likely on the cost side and people who are already there are not.
just a theory.
just a theory.
I see this as a factor but not a big deal. Open the base with a smallish number and you would not have a lot of moves. A one time expense that would continually save on Hotels and possibly Premium pay (if they don't screw up the staffing that is). How does an average move cost compare with a single 6 day 330/350/765A GS?
Scoop
#2102
Gets Weekends Off
Joined APC: Jun 2015
Posts: 1,779
SLC350? Did he really say that or is that what we all wanted to hear? This rumor doesn’t pass the smell test at all.
#2103
Gets Weekends Off
Joined APC: Feb 2011
Posts: 795
I see this as a factor but not a big deal. Open the base with a smallish number and you would not have a lot of moves. A one time expense that would continually save on Hotels and possibly Premium pay (if they don't screw up the staffing that is). How does an average move cost compare with a single 6 day 330/350/765A GS?
Scoop
Scoop
I do believe that the people with all of the information are making the decision not to open Boston based on the dollars. They might even factor in the cost of a potential base or category closure down the road in their cost equation.
It becomes more difficult to effectively second-guess decisions when we realize we don’t have access to the same information as the decision maker.
#2104
Gets Weekends Off
Joined APC: Apr 2016
Position: Looking left
Posts: 3,418
Delta tends to need a business case for any decision that costs money. It is possible that one data point in their business case calculation is a projection of how many paid moves a new base would generate. If this is the case, then people that are willing to move is likely on the cost side and people who are already there are not.
just a theory.
just a theory.
PB said that right now BOS is cost neutral...the cost to open the base (and cut down on hotels) is about the same as the current model of DH folks up there from NY to cover rotations and paying for all the hotels room...while he didn't say it, he was inferring that it would take some additional growth to tip the cost savings scale toward the open a new base decision.
And the 320 out of BOS serves 13 destinations, which is same as JFK, and one more than LGA (12)
#2105
Line Holder
Joined APC: Sep 2017
Posts: 51
I mean, times have also changed a bit. Many younger-hires/commuters aren’t moving to base because the bases are quite frankly garbage places to live. Sure there are nice things in any city, but as an aggregate I’d say most of the Delta hubs (and the same can be said for every other legacy too in my opinion) are undesirable places to live with high cost of living that negate some of the benefits of living in base. I’ll keep my house at the beach, lower cost of living, and good schools and continue to commute.
#2106
In the case of NYC or LA, if you are in the entertainment industry, you kind of need to live near one.
Financial Services? NYC is a big hub for that (as is Chicago)
Tech? Seattle or SFO.
But some places have very out of whack cost of living with the desirability for people with my lifestyle and desires. When I was in the oil field, Casper Wyoming was expensive as hell, as was Gillette, WY. Local markets driven crazy by influx of oil dollars, but not really that great of a place to live. I was spending $2,000 a month for 1 bedroom apartment in a OK but not super fancy part of town in 2011. Not a lot of people have Casper, WY high on their "lets go here" list. We made the best of it, but when I was out of that industry, the house that we ended up buying was on the market the next day. (it was a weird dynamic where apartments were stupid expensive, but houses were just expensive but not unobtainable)
#2107
High cost of living makes a place undesirable for a pilot with limited resources. I don't get how you can call that ironic. The fact that many of the high cost places are cities in decline further makes the case for undesirability.
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