Tristar
..one in the wilderness
- Joined
- Mar 25, 2004
- Posts
- 352
Tristar, the problem with your math (other than $17k to $50k is a $33,000 difference not 23,000) is that it doesn't take into account the nature of fee-for-departure contracts.
Major airlines are NOT going to pay their contracted regional carriers one red cent more than their contract stipulates. As such, regional airlines will have to absorb these increased costs with no increase in their revenue. In an industry that already operates on razor-thin margins, this could literally break the finances of many regional airlines.
Dang! You've certainly got me on the math. That's what I get for trying to cipher before I'm awake in the morning.
I understand your point on the fee for departure issue, but I maintain that if the pilot supply is limited, and all the players have to pay more to attract talent, the majors are going to have to pay more.