Originally Posted by
Lowlevel
Really, my favorite part of his reply was this:
"In-house costs are still costs, and if outside costs, (including mark-up), are cheaper, then a prudent decision would be to contract the work. This applies not only to the airline industry, but to all industries. Not only to flying, but to maintenance, technology services, etc."
So, if I need my airplane fixed and "Joe Schmo Fix-All" is cheaper than "Super Reliable Aviation", I will go to the cheap guy?
If I need my computer fixed and "Jimmy's Car Wash and Computer Repair" is cheaper than "IBM/MAC Repair Specialist, Inc" , I will go get my car washed and have my computer fixed by Jimmy?
If I have a choice between a regional airline that is a little more expensive, but had a record amount of 100% completion days, provides excellent service to my customers, and is actually a subsidiary of my business or a regional airline that is continuously late or cancels flights on a regular basis, etc. I should go with the cheaper, not so reliable airline to service my customers??
(feel free to add Comair and Freedom into that last example)
It just does not make sense in a service industry to always take the cheaper route.
Good points, but the airlines stopped being a "service industry" in 1978. It simply doesn't matter anymore to these people brother.
Thank the above for the letter to RA, very well written and it sheds some light on our situation.