Originally Posted by
rickair7777
I'm not sure the majors will go that route. If they had to pay for their own fuel, regionals are not going to sign a contract that guarantees financial losses...they will raise their prices to cover fuel. Additionally, based on recent events, they will likely add some extra on top of that to account for unforseen fuel price hikes...sort of like hedging.
This means that majors who force their feeders to pay for fuel will have to pay a premium, putting them at a competetive disadavantage. Other majors might decide to just better manage their fuel price situation (hedging, etc), and take advantage of lower-priced feed.
Regionals are not in the business of participating in the marketplace...they are are very effecient (well in some cases) technical specialists. The general contractor worries about all the subs and the price of materiels. The drywall guy just installs the drywall...he doesn't usually provide it, or take economic risk based on it's market price.
Your positive outlook for your job fascinates me. I wish I had the same positive outlook, but unfortunately I am a realist. Do you really think that a major airline will sign a contract with a regional that guarantees the
major financial losses? Why do you think delta is trying to get rid of Mesa, AA is reducing Eagle's flying, Horizon is going to an all TP fleet, Frontier dropped RAH all-together, and CAL is reducing XJT's flying and replacing some of it with TP's.
If the price of the installed drywall is so much that the value of the home is less than the amount invested to build it, then the general contractor would put in some sweet 80's paneling instead. The writing is on the wall (no pun intended).
Flex