A conflict of interest exist if one interest works against another. Just because one subsidizes another, doesn’t automatically make it a conflict of interest.

Mainline pilots have already negotiated their scope clause and either found it unable or not the negotiating capital to scope on RJs. So regional pilots negotiating the best pay for the RJ flying that mainline pilots are not going to fly, does not affect any revenue for the flying they did negotiate to fly. If you negotiate for your car or house, whatever deal you get for the eventual car/house, does not affect the next guy that negotiates for the car or house you passed up on your negotiations.

And because of that, the subsidization is not a conflict of interest. On the contrary, the more expensive they make the RJ flying, the less lucrative it becomes to mainline management.

The fundamental thing to realize is that one party negotiate the size of the pie with the pie maker. Then the pie maker negotiate with others who want a slice of whats left over. The pie maker divides whats leftover to a half dozen others. Then those others negotiate how much it’ll cost to eat that sliver. You are two steps removed and what is negotiated for that sliver has no effect on the original pie maker made with the original party.

I don’t know how many more analogies I can come up with anymore.