Originally Posted by
Lambourne
So they tell DL and UA the rates don't work. DL and UA show them the signed contracts, just like the express carriers did to the majors during their own financial troubles. DL and UA will tell SKYW if they want reduce the flying prior to contract expiration, then they will need to pay the penalties outlined in the agreement. Just so happens DL and UA are trying to reduce the number of 50 seaters so they win with the reduction and they get to hit SKYW for a breach of contract.
The cuts are going to be deep and there will be plenty of pilots in the pipeline when this is over to stave off any shortage for quite some time.
Try to follow along, Pops.
The contracts on these 50 seat jets are almost all expiring between now and 2017. UAL and DAL are trying to get SKW to extend these contracts at the money losing rates. SKW is telling UA/DL to pound sand and good luck getting passengers into your hubs or someone else to feed them. SKW is betting that UA/DL have overplayed their hand by removing feed without replacement, and I will put my money with them any day. Yes, the pro rate flying it making beaucoup bucks. Before long, you will see big airplanes with SkyWest on the tail, operating under the OO code competing with you in your largest hubs. How long are you from retirement, gramps?