Originally Posted by
Mason32
How long do you think it will be before the mainline carriers decide to stop feeding their now direct competition....
Delta tried to dump Mesa/Freedom and was told by a judge that there had been no substantial change in their business relationship to warrant a sanctioned breech/termination of their contract....
since BB aquired these large plane operators, RAH has now become direct competition, and not just a subcontractor feed provider. You may expect that once RAH has aquired the new equipment, several of the mainline companies will sue for contract termination on the basis of change of business relationship... RAH defaults, and everybody splits up the chunks of it they want. Meanwhile, BB rapes the place for all he can, and then sells it off like he did with BizEx to AMR.
Well, the news has been out for some time now, and the lawyers at Delta, United, et al, have had plenty of time to construct a legal case if they wanted to. I see no court filings, so I am going to go under the assumption that no one is going to terminate their contracts with RAH in response to the stand alone operations begun this year.
There has been fierce competition for MKE this year, and SW and AT have made big pushes for market share. Yet the legacy airlines, the ones that contract with RAH, have remained outside of the fray. I think there is more support for RAH among the majors than you think, even if they are just using BB as a leech to suck a little blood/cash from the LCC's.