Originally Posted by What:1280694
Originally Posted by
Trip7
Bigger doesn't mean better(Mesa), but it seems higher quality, more expensive regionals, are given a larger share of regional feed by mainline partners.
AMR has an RFP out for 255 large regional jets. Just a rumor, but I've heard AMR is not even considering TSA Holdings due to past American Connection issues with TSA
How do you figure AMR has an RFP for 255 large RJ? This was the 1113 SCOPE, the company chose to implement the TA SCOPE and thus it equals a different amount, stop spreading lies. There are likely RFPs out there for a good chunk of large RJ but please don't spread crap when is not true.
Just because AMR doesn't supposedly want to do with business with TSH doesn't mean they won't listen. GoJet and Compass have some of the lowest employee cost out there and you know they will use this to their advantage even if they don't pick them, also if AMR is to work a trade for the ERJs with Embraer for Ejets you want more than RAH to be able to whipsaw.
You're absolutely right about the 255 number. But we can agree that there is an RFP out for a very large amount of AMR large RJ flying that will probably be divided up between a couple regionals.
Low employee costs is a good advantage, but not everything. Economy of scale is also a significant advantage. Companies like Skywest Inc(especially with their credit rating) can get superior deals on aircraft financing better than mainline carriers themselves, let alone TS Holdings. They can get better deals with vendors for parts, office supplies etc. All together it can easily close the gap on a small carrier having low employee costs. I can start a discont store in ATL with all new employees at minimum wage but am I going to topple Wal-mart?