No vote now gets you a 6% raise
11-20-2016, 09:23 AM
#92
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,463
(their boards and share holders ultimately)
11-20-2016, 09:34 AM
#93
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Joined APC: Feb 2008
Posts: 19,610
What good does that do Delta other then losing revenue. How do you think any clause in our contract could limit that?
11-20-2016, 09:45 AM
#94
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Joined APC: Sep 2014
Posts: 4,999
I'm dizzy. Anyone interested in trying to boil down the discussion or otherwise summarize what one should know about...
AS, VX, SEA as a hub?
FWIW, I'm not SEA based and "never" will be...but I still want to have a clue. At this point, I don't.
Thanks in advance.
AS, VX, SEA as a hub?
FWIW, I'm not SEA based and "never" will be...but I still want to have a clue. At this point, I don't.
Thanks in advance.
11-20-2016, 10:00 AM
#95
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,463
Delta owns 3/4 of the VA JV and soon 3/4 of the AM JV. Connect those networks and we reap 1/2 the revenue and the only cost is the ticket sales, via the websites. No Delta ops required. Do you think they would turn down that return on investment or pure profit? Or do you think they'll expand Delta metal around the globe increasing capacity?
11-20-2016, 10:01 AM
#96
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Joined APC: May 2015
Position: A350 Both
Posts: 7,292
11-20-2016, 10:14 AM
#97
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Joined APC: Feb 2008
Posts: 19,610
Delta owns 3/4 of the VA JV and soon 3/4 of the AM JV. Connect those networks and we reap 1/2 the revenue and the only cost is the ticket sales, via the websites. No Delta ops required. Do you think they would turn down that return on investment or pure profit? Or do you think they'll expand Delta metal around the globe increasing capacity?
11-20-2016, 10:33 AM
#98
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,463
I don't know where you get the ¾ ownership from but regardless I have no idea what this has to do with Alaskan and VA merger. I also don't think that passengers are going to want to connect through Mexico. In the end we still make a lot more money using our own metal if the route is economically and politically viable. Two factors completely overlooked on the forum.
DCI.
This is all about creating a brand portfolio so you can sell the ticket the customer is comfortable and familiar with. A brand people respect in their home country sells seats better than a foreign brand. The metal they eventually ride on is immaterial so long as the experience is good and the connections are seamless.
Again, why doesn't Delta operate the E175s it owns?
Because it doesn't have to, and can get it done cheaper by outsourcing it.
Once the brand portfolio is complete, you could license those brands to non-equity stake partners who need brand recognition. (1E9)
11-20-2016, 01:19 PM
#99
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Joined APC: Jun 2010
Posts: 852
The JVs have helped us get around airport czars who either don't want to give us more access (gates/slots), or want to make them prohibitively expensive. We've used them effectively in LAX and SEA. Gee, no more gates? Our partners at ___ said we can use theirs.
I think JVs have also allowed us to capture revenue in countries and regions where we wouldn't practically have a direct-flight presence.
The risk is erosion of our "get there" flying in situations where the revenue-sharing formula pays Delta a lot of $$ when passengers aren't on our metal.
Maybe a good place to start is for somebody to post the revenue-sharing formulas for each JV so we can assess the level of risk.
Absent that information, I think speculation is of limited value.
I think JVs have also allowed us to capture revenue in countries and regions where we wouldn't practically have a direct-flight presence.
The risk is erosion of our "get there" flying in situations where the revenue-sharing formula pays Delta a lot of $$ when passengers aren't on our metal.
Maybe a good place to start is for somebody to post the revenue-sharing formulas for each JV so we can assess the level of risk.
Absent that information, I think speculation is of limited value.
11-20-2016, 03:42 PM
#100
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Joined APC: Dec 2013
Posts: 217
"50-50 sharing of incremental contribution generated by the JCA above baseline performance, together with 20 percent sharing of incremental beyond and behind revenue"
JCA means Joint Commercial Agreement. There is no comment about cost sharing, which kind of blows up the idea that we're going to have other carriers taking our flying.
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