Originally Posted by
Red97Vette
Well, considering that GoJets underbit other regionals to fly at a loss, just to get in with a mainline,
Where do you get the part about flying being done at a loss?
Any startup airline will have low labor costs because their pilot group is at the bottom of the pay scale. Combine that with a lousy contract and you have the lowest labor costs in the industry. Most other costs such as fuel, certain maintenance costs and aircraft leases are all pass threw expenses that mainline picks up. Your labor costs are mainly the determining factor whether you can bid for flying at a lower rate than your competition.
If GoJet has the lowest costs among CRJ-700 operators, why would they bid for flying at a loss? And if they really did that, it would prove what a bottom feeder they really are.
I do believe SkyWest is the airline you might be thinking of, as far as bidding for flying at a loss.