Originally Posted by
cornerpocket
One could posit that it's easier to shrink a large operator than to grow a smaller one. Growing an airline costs time and money. Two things to be carefully considered especially in an environment where human resources have been significantly scaled back. Contracts, including property leases, can and will be re-negotiated.
I don't think United is secretly conspiring against one company or another. The pilot group is only one piece of the labor puzzle and United will choose the operation that makes the best financial sense and meets the needs of United at the end of the day.
At the end of the day XJT has to be profitable to stay in business. UA wants to pay less for regional feed. If XJT can’t be profitable at the price UA wants to pay, then they won’t stay solvent. XJT’s only potentially controllable expense is payroll. There are ways to get it under control without asking concessions from the staff but they are limited. The letter was frank. I don’t think it was unreasonable given the circumstances. It’s been validated by UA as real and not just a rumor where XJT pilots take concessions and both airlines remain. XJT pilots need to make a decision. They could include language that if they are not the only 145 operator that rates snap back.