They don't have to be "competitive" with the cut throat DCI outsourcing machine. That is a management fantasy. Our 320's don't have to "be competitive" with VX's pay and benefits. They only have to be competitive in that they can be flown with a cost structure that fits others in the mainline fleet WRT CASM. Same for the 90 seat "RJ's". There is always someone willing to fly a plane cheaper than someone else. Unlike the DCI RFP's you don't have to be the lowest bidder when you own the scope.

Even a substantial dollar/hr increase vs the highest cost DCI carrier is to the right of the decimal on the CASM number. The 90 seaters absolutely can be flown at mainline well within reason of any other mainline AC CASM. Even if its a little bit higher, that cost can easily be amortized over the size of the (second) largest (and continually shrinking to profitability) airline in the world.