Originally Posted by
grumpycfi
Here's how I'm looking at it:
The first thing RAH is going to try to do is shed its less profitable contracts. That's not going to make DAL, UAL, or AAG (mainly DAL) very happy. The question is, how can RAH justify incurring extra cost to its mainline partners all while touting its industry leading pay? I don't think mainline will stand for that. I'd imagine that at the very least, those generous cash bonuses 1 year after contract ratification are not going to happen. Bedford probably knew that right from the start, too.
As far as needing to still be able to recruit is concerned, only the clinically insane would accept a job at a regional airline that is currently undergoing bankruptcy. Industry leading pay notwithstanding. RAH's ability to recruit for the time being is over.
I hope I'm wrong, though, and I wish my friends at RAH all the best.
Delta is gone period. It doesn't make sense for RAH to continue to service their partners "sh*tty". Dump one of them to service the other two better.
Industry leading pay is what it takes to keep pilots from leaving your airline for another airline with a flow and 1 year upgrade. Industry leading pay is what it takes to stop pilots from doing things that are obviously better for their careers in the long run. Said pilots make a decision to trade future pay and benefits for immediate gratification. This should go without saying, but an extra 5 years at a mainline carrier likely means an extra 2 million dollars in total compensation and benefits. Most pilots can't see beyond 10 feet in front of their noses though but whatever. Industry leading pay is what it takes to recruit at an airline like Republic which has nothing else to offer.
Rah's mainline partners can take it or leave it, its their choice. If they want to keep their contract feed going, they'll have to pay up. There's no other way. What's the alternative? Bring the flying back in house? That would be fine too.
Unless RAH changes their model to competition, RAH is going to fail- not immediately, but they will fail. All contract airlines are doomed, but RAH and skywest will be the first. Wholly owneds will be the last standing, as the ownership can dump an unlimited amount of money into them at will.