SATCFI

You are the one missing the point! If 50 -seaters are not viable without the cross-subsidy by AA (basically, allocating more of fare to AE for the feed from the total AA fare) they won't be viable supplied by another airline bidding the contract unless the regional carrier bidding to supply AA can reduce costs elsewhere--can you say pilot's salary. Either fares have to rise or a more efficient way of delivering the feed must be set up.

Then, AA provides its own feed with A319 or their is relief on 70-90 seat RJs from the APA Pilot working agreement. Seeing as UAL is proposing a 95-seat RJ side letter to ALPA; DL is using lots of them, how do you think it will go?

I see some tense talking between AA, ALPA and APA. Someone is going to have to blink. AA is not too strong in the number three position of majors, squeezed by SW, domestically; by internationally by relative powerhouse DL and UAL (Pacific, especially). There are still concessions to be made, I fear.


GF