Originally Posted by
John Carr
^^^^^Agreed. The cost structure at the regionals is now way different than even 5-8 years ago.
Management isn’t going to order 100 or 76 seaters if they can’t be profitable at mainline. They will simply walk away from the table and not order the planes.
The line is crossed once you’ve hit break even and even before that, at barely any profit at all.
RJ pay going up puts management between a rock and a hard place. It does not improve the economics of flying those planes at mainline.
Bargaining power and aircraft economics are two different things.
The real question is, how close to that like are we?