Originally Posted by
Rightseat Ballast
I like the author's description of how "convincing" Bedford is. How can you dispute his reasoning and thought processes with claims like "we are the only regional operator of E-jets in the U.S." Did he ever hear of Compass?
That little bit aside, it was nice to finally hear some rationale behind the acquisitions. I was unaware of the new 50/50 business/leisure standard for revenue sources.
I still wonder what all of the factors were that made the cost structure of Midwest so debilitating. We all know about the changes in pilot and F/A cost structure, but we all know that our wages are not make or break points. What else was going on in the finances of Midwest? What changes have been made that will honestly contribute to Midwest profitability?
I don't remember the exact number, but CASMs at Midwest were among the lowest in the industry, so I'm not sure in what way Bedford was liberating the cost structure other than pilot pay rates which are a very small percentage of CASM. Bedford also mentions replacing Midwest's 50 MD80s and 717s. In my eight years there, I never counted more than 37 airplanes in the fleet, and when the purchase supposedly happened there were only 9. How does he justify his numbers, and how long has he had his hands in this?