Originally Posted by
ReluctantEskimo
So a big airline pays more for fuel? They have the margins right? No. They are fixed cost commodities. Why are people any different? The difference in scale is already accounted for by the headcount. You're the one being emotional.
Economies of scale play a major role in viability and the sustainability of costs. Scale alone creates synergies and the vastness of the network and mileage plan allows for a significant number of points for those cost pressures to be alleviated and consumed.
Going forward in the current market though, I don’t see Alaska being able keep cost discipline with its pilots as the current market will not allow it. They will have to pay market rates to attract and keep this workgroup.