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Old 02-28-2010 | 09:53 AM
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rickair7777
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From: Engines Turn or People Swim
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Originally Posted by Diver Driver
Maybe there is an element of this that I do not understand, but it makes no sense to me for an airline to directly fund a regional carrier that operates a subsidiary that is in direct competition with that mainline carrier.
I agree, this is not some vast conspiracy with all of the majors colluding with the reverend to move narrow-body flying to the regionals.

The majors don't want RAH as a competitor and they certainly don't want to subsidize the growth of said competitor, but they are stuck with their current contracts.

When the time comes to renew, the majors will evaluate the impact RAH is having on the competitive environment. If it is minimal, they will allow RAH to bid. If RAH is having significant success, they will not be invited to bid on renewal of their contract flying...at that point they will need to be ready to stand alone.
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