Originally Posted by
Sink r8
Actually, I think you have to go back to the original post, and the point being made about Delta "putting a gun to the heads" of the Pinnacle pilots. Delta did this because in this case, it needed to, and because it can.
The relationship between the two airlines is not that of independent and equal partners, but a subservient agreement, whereby the regional exists as a scope exception, and is allowed to defy the laws of economics for a while, because it suits the master. At some point, the master's interest shifts, and it becomes convenient to dump an entire regional, or several, or to squeeze one through CH11. In the process, this master might suddenly drop the benevolent mask, and be revealing as the controlling, and potentially abusive entity they always were. I suppose this might come as a shock to some, who were allowed to frolic a while, under the illusion of freedom (no pun intended, Mesa). Just ask the Independence Air guys when you see one.
This is an ugly industry, and the regionals are to a mainline what an Indian call center is to Dell. If you work for an Indian call center, you make acceptable wages, and you do OK until your call center is cut from the Dell contract, maybe at the exact same time that HP, several airlines, and a bunch if banks cut theirs, and you're still in India.
At that point, if you were interested in a Visa to the States, you'd not argue with Immigration about how you fought the good fight in India. You'd just have to decide whether you want to talk about the visa OR the fight.
That's the nature of it.
$1.6 billion profit for 2012, doubt they needed to. The rest of your post is spot on, unfortunately. Some people will never be able to grasp this. Lifer's want their 120,000+ paychecks for 20 days off. The regional model never supported that. Comair and Pinnacle are living proof. When/if this contracts goes through SkyWest and XJT are next. I don't care how big your "economies of scale" are. Actually, regardless whether this TA goes through, SkyWest and XJT are next. Pinnacle is still a higher cost company than Gojet and Compass, even with the concessionary TA. Eliminate Pinnacle and there is one less company in the average cost formula. For those who think the outcome of this TA will directly effect negotiations are foolish to think they are safe from Daddy D. Comair, Regional Elite, Pinnacle, Delta is just going down the list. If Pinnacle vanishes the average just goes down that much more.