Originally Posted by
seafeye
It was just another form of "Pay for Training" but instead of pilots paying $25k for a job it's management at AWAC/Republic paying 25 million for a piece of the pie.
US Airways didn't need the 25million from AWAC last time but what CEO is going to turn it down? Then 5 years later that same CEO is complaining about too many 50 seater RJ's.
First off, Airways would have had a hard time emerging from CH.11 without the
$125Million in exit financing provided by AWAC.
Second, there was no net gain in 50 seaters; AWAC simply replaced MESA on the east coast.
And it has been referred to as 'pay to play' (doesn't make it right).
ID