Originally Posted by
xjtr
Xjet is in arbitration with CAL because the rates that xjt charges are high. It also creates problems with xjt getting other contracts (from what I hear, if xjt wanted to fly more than 10 planes for another carrier, they would have to charge the same as they do for CAL and nobody will pay it) The extra eight that delta is getting will be on a code share type of agreement.
High compared to what? Its high because thats what CAL agreed to and they get great service for it. Look at what happens when they tried to get someone cheaper. You've seen the stats on that whole circus. The only reason its higher is because everyone is trying to undercut us. We have continually had to lower the rate because of the other carriers keep lowering their profits. CHQ does this by getting a bunch of agreements for lower % which add up. We had just one code share, CAL they were our sole source of income hence keeping the rates up. Now we are diversifying which is good for everyone. The key is to keep the standards high. If we can keep the standards high and lower our costs by diversification then we will be sitting pretty. IMHO