Quote:
Originally Posted by johnso29
There's the problem. You are stuck on seeming to think that RAH is 'saving' F9. I think you'll have a hard
time proving so. Just because BB may purchase part of F9 while they are in BK does not mean RAH is saving F9. It's simply a business move.
Once again, I really think your setting yourself up for disappointment.
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WHO is saving WHO...
Regional airlines, under fixed-fee contracts with major airlines, typically pass fuel costs to the big carriers who now are "eating a lot of red ink," said Michael Boyd, principal of Evergreen, Colo., aviation consultancy The Boyd Group.
So the major carriers are reducing use of the 50-and-fewer-seat regional jets. They're terminating contracts with regional carriers almost as fast as they can find an escape clause.
When oil hit $50 a barrel, the [regional jets] were under water. When it got over $50, these became financial submarines," Boyd said.
The trend appears to be partly behind Republic's July 11 announcement that it is cutting 500 jobs, or 10 percent of its work force.
On July 3 - eight days before Republic announced job cuts - United Airlines informed Republic it was exercising its right to terminate a contract with Republic's Chautauqua Airlines, which flies seven, 45-seat Embraer jets for United
IBJ - August 2008