Originally Posted by
rickair7777
They don't need QX to play against OO. They did need to OO to keep QX in check, since that camel always had it's nose under the tent.
They can readily get rid of QX since regional costs will be driven by staff shortages and market forces for the time being. So no benefit to whipsaw for a while.
If QX is an expensive nuisance (they are), maybe now's the time to get out of that biz.
Later on if they need somebody to keep OO honest, there's always mesa.
Not saying it's going to happen, but if it is now's as good a time as any.
I can't say I agree.
So what happens when the labor market reaches equilibrium, and the labor shortage is no longer the driving factor in cost? As a wholly owned they can, and have, complete control over QX and the people that sit across the negotiating table with IBT. These new rates can go backwards (and they have). In fact, QX once had the highest 76-jet rates in the industry until 2016 (for a regional). Whereas if they decide to just contract with Mesa or Skywest, or both, the costs there are determined by market rates largely beyond their control. In other words, Delta, UA, and AA can set the going rate for FFD contracts (as they do now). I highly doubt that Minicucci and the board are that short sighted. Moreover, if QX were to be sold off to another CPA carrier the most valuable resources wouldn't likely remain at 00, or wherever. Sure, maybe they'd pick up another 33 aircraft. Now staff them. Out of 750+ pilots at QX perhaps 450 might stick around long enough to cause a training pipeline log jam and then boogie literally anywhere else within 2-3 years.