Originally Posted by
Wheels up
The problem is that Eagle has a fleet consisting of a very large percentage of near obsolete and very high cost per seat mile small RJs. Most small jet providers are guaranteed a profit through fee for departure schemes where the mainline pays for every seat on the airplane regardless of whether it's sold or not. In essence, they are subsidized by the mainline jets. Interesting to note that Southwest, the most healthy of the majors, has no very high-cost per seat mile regional jets.
Sothwests model and AA's are completely different (180 degrees apart).
AA's model REQUIRES a feeder system to function (and remain in business), wheras Southwests does not.
Eliminate feed for AA and it either dies or has to change its model to match Southwests. Too late for that, so AA has no choice but a healthy and competitive feeder system. Strangle that and AA will shrivel to a shadow of its former self, taking at least 50% of their pilots with it (most likely more).
Quite a little problem, no ?