Originally Posted by
Superpilot92
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.
Please explain to me how a mainline carrier would not be footing the bill at a wholly owned carrier? They would foot ALL of the bill. However I do think a contract at a contacted carrier can be written to at least SHARE some fuel cost. While no regional can foot the entire bill either, they could relieve some of the pressure.
There are a million ways to spin this in favor of either a wholly owned or a contract carrier. We will just have to see what happens. IMO there are operational costs included with a wholly owned that are not at a contracted carrier. One thing is for certain. At a wholly owned mainline is paying 100% of the cost of everything.