Originally Posted by
eaglefly
Unfortunately, there's history in embellished promises to new-hires there. Back in the late '90's up until Letter 3 expired, they made similar promises to new-hires then about flowing to AA in X years along with other rosy projections. When Letter 3 was announced in 1997, it was then projected that all Eagle pilots would be at AA in 5 years.
They were just a bit off.
But remember, they are not the same company - even you admitted that
Originally Posted by
chrisreedrules
Flows are more of a retention tool than a good hiring tool it would seem. At least that is what history tells us. Anyway, with PSA and now Envoy having a seemingly difficult time hiring... And other regionals offering far more enticing compensation and contracts, I would think that AAG has to do something if they want to keep their regionals afloat and competitive enough to attract new hires.
AAG likes WO carriers for one simple fact: it allows them to keep the profits in house. All things equal, they would rather have the flying in house at a WO carrier. However, if a non-WO carriers has even the slightest competitive edge such that costContractCarrier < costWOCarrier without the slightest hesitation, the flying will go there. If it comes to the point where the flow does not recruit enough people (where we are now) and the alternative is farm the flying out to non-WO carriers or give increased pay to the WO carriers, the flying WILL go to someone else. They can staff it for cheaper.