That is $4.5 million more than ALPA sold those Northwest Pilots' jobs to management for in concessionary negotiations. But hey, I got a stock award out of the merger.
Maybe, but... Two points:
* Cancellation penalties. TSA had better be bankrupt if they default on the contract. Pratt will be building engines, gear struts will be forged, the supply chain spins up 12 to 18 months before the thing comes together. They don't work for free.
* What is the history of mainline order cancellations contrasted with those at regional carriers? If past performance is a predictor of future results, I'd place bets with the regional management team. They've been right more often than not.
It appears to me some parties are placing big bets that some version of 100 seat flying gets outsourced. Do not know, what they know. But usually they place bets with inside information. My understanding is that proposals for 100 seat jet operations are the buzz amongst the executive offices of a number of small narrow body jet operators.
Now my question, could these be a replacement for the E170/175's? If so, Delta management was right in stating the airplane had a limited economic life. Also, if these next gen narrow body jets are truly a "Guppy Killer" ... SWA might be a target. They've got a bit of blubber and TSA's always been a poacher.