Quote:
Originally Posted by Eric Stratton
Does anyone know what United pays out in guaranteed profits to the regionals?
|
UAX operations are fee per departure agreements with fuel pass through. For example; $3500 per departure and UAL pays for the fuel for the segment.
There is no guaranteed profit unless the UAX carrier can carry the a/c lease payment, labor, insurance, and any other direct cost for less than $3500 for that segment. Now you know why pay rates are what they are.
I'd suspect in the very near future that the UAX contracts will become the revenue sharing model where the UAX carrier is exposed to all productions costs and shares revenue on any segment of a ticket that they operate.
I'd imagine few UAX airlines will be able to make it over that hurdle.
Similar Threads
Linear Mode
