Originally Posted by DarkSideMoon (Post 3095483)

You can’t just hand wave away a contract though....

Unless you own/control the regional you’re trying to mothball.

Originally Posted by GA2Jets (Post 3095576)

I think more likely UA would just tell a regional that they are getting the absolute bare minimum block hours allowable per the contract. Because that situation would not be tenable, the regional may choose to close.

Let's say, for example, UA tells GJ that they will only fly 15% of their 2019 block hours indefinitely because that's the minimum in the contract. GJ may not be able to sustain that level of business without any chance for an increase, and may fold as a result. Contract terminated, problem solved for UA.

This would be particularly true for airlines with aircraft on lease wherein the lease must be paid regardless of the aircrafts actual flying activity. The aircraft *must* fly for a chance to break even. That's part of what killed TSA, except it was their own pilot shortage that really limited their capacity to fly, not UA.

Originally Posted by Av8rPHX (Post 3095585)

Compass and TSA would beg to differ


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Originally Posted by Av8rPHX (Post 3095585)

Compass and TSA would beg to differ


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Originally Posted by DarkSideMoon (Post 3095588)

From what I gathered;

Trans states shut down mostly due to an inability to staff their flying and general mismanagement. They went to United and asked for some flexibility and United said no. That’s very different than United unilaterally pulling out of a contract.

Compass’ Delta flying contract expired and they were unable to secure enough flying to be a viable airline. Again, an expiration is much different than pulling out of a contract early.

That’s my take on it anyway. Let me know if I misunderstood something.

Originally Posted by ZeroTT (Post 3095627)

My example was succinct, but it really depends on the (presumably confidential) contract details with each regional. I don’t think United would hesitate for a second to leverage any contractual leverage to conserve cash, even if a court might disagree 8 years later

Originally Posted by DarkSideMoon (Post 3095483)

You can’t just hand wave away a contract though....
Unless you own/control the regional you’re trying to mothball.

Originally Posted by rickair7777 (Post 3095600)

No. Different issues. They were already on the ropes pre-COVID.