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Old 07-20-2012 | 07:58 PM
  #595  
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Reggie Dunlop
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Originally Posted by Nevets
Economies of scale...did you not see that in my post. Thats the difference between XJT now and all of them then.



Economies of scale...


The other side of that argument is diminishing marginal return...which unfortunately where the regional segment of the industry finds itself. There are too many widget makers (50 seaters and the pilots that go with them if you will) bumping into each other on the factory floor. It has tipped over the top of the curve and is no longer an efficient means of production from the perspective of those with the capital.

You could grow any subcontractor to infinity and they would only get less efficient and more expensive at this juncture. Behemoth size is not necessarily a strength, and in this particular instance it is not. An increase in cost only furthers to sharpen the curve in the wrong direction from the perspective of labor. It happens over and over yet labor still buys into notion of a very broken pattern bargaining model.