Originally Posted by
tonsterboy5
wishfull thinking but the other UAX carriers offer a fee for departure. United could care less about others labor rates as they pay then a set fee. They care about ExpressJet and comutair because they are paying for the losses. United doesn’t care if Air Wisconsin or Skywest loses money on a flight because it’s not United’s money.
EV and C5 also operate under capacity purchase agreements. United owns a portion of both just like they own some RJET stock. The details of those agreements are a closely held secret but the business relationships are similar between all the FFD.
United doesn't pay the payroll at EV or C5. They pay the negotiated block hour rate and expenses like fuel (same as they do for the rest of the regional stable). The block hour rate is what they want lower. Perhaps C5 can accept less without reducing compensation costs. Perhaps EV can as well but Subodh wants his money. Who knows since we don't have access to the financials.