Originally Posted by
Bill Lumberg
After reading the article, it does seem like we are subsidizing Frontier (Republic). They determined themselves that high gas prices weren't allowing their own E170s flying for Frontier to be profitable, so they threw them on the Delta side, to also not be profitable (for Delta). It's profitable for Republic, though, but not for their own brand. Break even with Delta, or lose money on their own. Very smart of Bedford. What does Lee Moak think about this?
Not necessarily true. These are new airplanes and will be subject to different terms that the original CPA. These new agreements are more at risk for the operator. Places like Republic are more willing to sign these now, because they will try to make it up in cheaper labor and leasing costs. RJET specifically, wants this because its branded flying is getting killed. If anything it draws out the process and makes them a bigger target for another airline to acquire them.