Originally Posted by
WAVIT Inbound
So if it came down to 2 or 3 regionals who's to say it is the wholly owned who survive? Actually it would be much cheaper to just get rid of the wholly owned's because there would be no expensive contract to try and get rid of. Plus if the wave of the future really is to have regionals share more of the fuel costs then that would be possible with contracts at a contract carrier. At a wholly owned the major partner is footing the entire fuel bill no matter what.
Just playing devil's advocate here. I think we all want to think we know will happen. But really none of us do.
The mainline carriers are getting tired of guaranteeing profits and paying the fuel bills for the regionals. I think the reason you are seeing DAL and NWA with the wholly owned regionals is because that way they can keep the money in house and have the freedom to adjust as necessary instead of getting locked in to contracts with outside subcontractors. The days of the mainline carriers footing the fuel bills are going to quickly come to an end and there arent many regionals that can afford to cover the fuel costs now a days. Just an observation.