Lear70
JAFFO
- Joined
- Oct 17, 2003
- Posts
- 7,487
Unless the cancellation fees and penalties are less than the cost to let them finish their contracts and the loss of revenue from passengers flying on RAH flights, I'm sure they won't try early cancellation. Simple money game.Is Delta or any other airline the currently uses Republic for contract feed actually doing anything about it? Or are they planning to do anything about it? Are they not going to renew connection flying contracts with Republic or cancel them? I would guess they want to cancel contracts, as they are now giving their competitor’s money. In this very competitive industry, I am sure they will put a stop to that ASAP.
However, I'd be extremely shocked to see them renew those contracts. Which is good news for other regionals. I'm expecting to see an interesting hiring trend at those other Regionals as the flying to RAH is yanked at the earliest available opportunity, at the slow expense of RAH jobs.
I think it'll be longer than that. The first renewal contracts come up well after that 2 year mark. I'm guessing 4-5 years before we see a real pinch at RAH, long enough for them to shift their business model. I'm sure their management sees it coming just as obviously as we do.I agree, once on their own (which looks to be the plan), they won’t last 2 years. There is enough capacity in the system already.
What a mess...