It's the high payroll.

When AMR was going to divest Eagle, all they really had was a staffing company. They couldn't do it because to the any shareholder they'd be worth $0 without airplanes since AMR was going to keep the planes. DL figured it out first that it was better to own the planes and lease them back to its regional partners. It's super control over your contracts.

IMO AMR wanted to sell Eagle, hence the push for a contract. When the pilots said no, well, here Eagle is dragged into BK. Same thing happened to OH. Even though the pilot costs were the highest, OH was still making money. DL just made it look like they were losing money. Look at the results. No one wanted to buy OH and now their ship is slowly sinking. Eagle's in the same boat. DL trimmed the fat off of their books by parking a ton of their 50 seaters and getting rid of their ATRs. Results? Pilots on the street.

How many 50 seaters or <, including the ATRs, will be trimmed? How many of the ones that don't get trimmed get leased out to the highest bidder, which includes a AA FFD contract? How can AE compete when other regionals will pick up the flying for a loss just to have the contract? AE only has AA for flying. Good luck trying to pick up other flying at AA or anywhere else in the US. It's a cut throat business. Ask the YV pilots about PSA trying to undercut them to take their 900 flying and they're both ALPA carriers. Overseas? Maybe, but the US regionals attempting overseas flying hasn't been too successful. Speculation at its best, which one can only do at this point.

Just my .02!