Originally Posted by
QCappy
Alaska's operating costs may be too high, by they aren't Horizon. And I don't work for Alaska.
That's funny, last I checked Horizon was wholly owned by Alaska. And as far as making money take a look at ASA and Comair. ASA has been the most profitable regional posting the highest Q earnings. Yes, Alaska isn't in bankruptcy but what do your thinks going to happen when Virgin starts up in less than 230 days and starts to compete with there North American routes. Virgin is supposed to have significantly less operating cost than Alaska. Now don't get me wrong, I like Alaska and I don't want Virgin to even get off the ground but I can't control that.
Alaska will have to reduce total cost and Horizon, being a wholly owned airline of Alaska, will have to as well. It's business 101; if Alaska needs to cut cost then a well paid labor force will be the first place they turn. If you don't believe me then just look at Comair and if you still don't then just wait.
I hope I’m wrong, but the written on the wall. When Alaska needs to cut more cost no part of Alaska is safe.