Originally Posted by
Bucking Bar
Let me re phrase the question slightly. What if we just let those contracts on 76 seats die as the airplanes expire?
What concerns me about these new contracts, is that we are signing up for long term deals which tap our revenue at the roots. THis harms our future competitiveness and flexibility.
What really concerns me is that we lose control over that capacity. If fuel prices head to $200bbl again the only capacity management can park in a hurry is small jets at mainline. The MD88 is a prime target since its costs per seat mile are higher than other alternatives.
Our junior pilots are the accumulator in the system.
Bar;
I've got to say, I really enjoy reading your case studies of the various subjects that you attack. In this case in particular (and when gas was 140/bbl) I think your analysis is likely correct based on stated CASM.
However, it should be extremely alarming to the rank and file if what you say is true (that ALPA has not done the economic analysis) especially since we recently had pretty expensive gas.
If the analysis was not performed, from what possible framework would our unions be able to make rational decisions? Hip shooting?