Originally Posted by Rightseat Ballast

And before someone starts ragging on CHQ for undercutting Eagle, please re-read the situation. CHQ is flying for AA because CHQ flew for TWA, and the contract carried over after the purchase. CHQ never underbid Eagle for flying. CHQ did reduce it's compensation rates with AA, but that also coincided with a reduction in planes flying for AA. CHQ did not increase it's flying for AA through reducing costs, and pilots did not take any pay cuts as a result of the lower reimbursement rates from AA.