Originally Posted by
iFlyRC
You can't possibly convince me that Envoy can operate cheaper than Mesa, and as soon as it suites mainline, you'll see them try to spin off the wholly owns, and give the flying to the cheapest bidder. It would not surprise me one day if Mesa was operating Envoy's E-jets.
Perhaps in the short term, Mesa may get pushed around, but Mesa will never die.
If it was 2007, maybe I'd agree but it's 2016 and times have changed. Decreasing labor supply is driving regional labor costs up. It wouldn't surprise me if Mesa doesn't survive the next five years do to low margins resulting in their inability to raise wages to a competitive level. The fact that Mesa is locked into long term contracts is a huge economic disadvantage if labor costs go up with their current small margins. The Fee-For-Departure industry model is changing and the wholly-owns currently offer more value to their parent company.