Originally Posted by
Longhornmaniac8
It's a sunk cost. I'm not saying they will or they won't, but far too many people use evidence of a past financial commitment (stake in airline, cabin refurbishment, etc) as a justification for why X will continue to be around.
That's not how business works. What's done is done. The only thing that matters now is what happens going forward.
^^^^^^^^^This^^^^^^^^^^^
XJT has no assets to sell other than a list of qualified employees. United already owns all of the equipment that XJT operates. The previous money was spent at a time when XJT needed propping up to provide reliable feed to United. It wasn’t an investment to be sold or kept, it was money spent in the past to keep feed when demand was at record highs. If going forward they decide that that the equipment will not be around, neither will XJT. It won’t cost them any money. Park the jets or transfer them to another regional, and XJT is just a list of employees with no work. They could easily decide that XJT handles what is left of the 50 seat flying, or they could consolidate flying and transfer those planes to another regional. That decision will be based solely on what is best going forward, not money spent before the virus.