Originally Posted by
Bond
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First of all, in an operating environment of gas above $120 a barrel, most legacy carriers will not make any money on anything smaller than a 757...that's just basic math based on CASM as taken from multiple quarterly reports from DAL to UAL to CAL......
737s are the most efficient and have the best CASM. United wanted to dump them for one common type and has sense started changing their mind.
On a side note RAH gave both those companies the "infusion of cash" you spoke of at a much lower rate than what they were getting allowing them to continue operations. F9 is saving TONS and who knows if Midex would have been able to secure any loans in today's market place. If RAH hadn't stepped in Midex could already be belly up with twice as many pilots on the street. Just another way to look at it.
To the other post who said this is a bad deal for RAH if they go belly up they need to look at how the US Air deal was formed in the first place.