Originally Posted by
baseball
One of the top 3 reasons for the UAL-CAL merger was to find a way to defeat CAL scope language.
Not true. CAL was only feeding two hubs, and didn’t need a large feed, just like JB and other smaller airlines don’t need a large feed. CAL scope was limited to 50 seat jets, but there was no limit, including Q-400 planes which could be configured to 78 seats.
Since CAL was actually experiencing a liquidity shortfall due to failed short term investments, anticipated run on the bank for higher paid pilots retirements, and lack of high yield PRASMs it was only a matter of time til they had to find a dance "merger" partner.
This is the reason CAL needed to be bought by someone. They were going to be out of cash in short order and the 3rd and final BK was on the horizon.
There was not some grand scheme to wipe out CAL’s “industry leading” scope LOL.