Originally Posted by
Tsuda
Borenstein says a big part of the reason costs for these airlines are so high is because of labor relations. It's not just about higher wages — it's because of what their contracts say workers are allowed to do.
I was thinking high operating costs may have been because of interest on $26 Billion in debt, no doubt in the last few years AMR must have been paying loanshark rates. I wonder how many pilots were involved in securing those credit facilities?
Labor is a popular scapegoat, and seems to be a common theme in any article that UAL Scab Cordle is mentioned in.
By the way, the article ignored Hawaiian Airlines who is a legacy carrier AND filed for Chapter 11 bankruptcy protection on March 21, 2003.