I work for a company whose customer has, other than a little (very small) bit of extramarital diddling, a monogamous relationship with its regional partner.The regional business is like a brothel.
You're in a brothel full of hookers (regionals) and a new John (mainline) comes in.
If everyone stuck together, the average price of a "trick" is going to be somewhat higher and all will benefit. But there's a new, younger hooker that's in the room that will do the deed for less and it drives the going rate down for everyone. The new one has low costs because she's younger, lives in an apartment with six other hookers and thinks that she's a 'straight-up baller' because $40K is a lot of money at her stage in life and in comparison to her friends at Subway, she's stacking the cheddar -- even though that $40K used to be a $100K-plus job.
Why would the John pay $X for a dirty deed when he could pay $X-Y for the same?
Eventually the new hooker gets a little older, has a home and a family to support, her costs go up... A few more wrinkles and can't figure out why no one wants to pay a premium even though her costs went up.
Then the brothel adds a new hooker and the process starts all over again.
The newest, and somewhat most egregious hooker is GoJets today. It will be someone else tomorrow and so on and so on until people clue in and get a backbone when it comes to professional aviation.
The regional business is like a brothel.
You're in a brothel full of hookers (regionals) and a new John (mainline) comes in.
If everyone stuck together, the average price of a "trick" is going to be somewhat higher and all will benefit. But there's a new, younger hooker that's in the room that will do the deed for less and it drives the going rate down for everyone. The new one has low costs because she's younger, lives in an apartment with six other hookers and thinks that she's a 'straight-up baller' because $40K is a lot of money at her stage in life and in comparison to her friends at Subway, she's stacking the cheddar -- even though that $40K used to be a $100K-plus job.
Why would the John pay $X for a dirty deed when he could pay $X-Y for the same?
Eventually the new hooker gets a little older, has a home and a family to support, her costs go up... A few more wrinkles and can't figure out why no one wants to pay a premium even though her costs went up.
Then the brothel adds a new hooker and the process starts all over again.
The newest, and somewhat most egregious hooker is GoJets today. It will be someone else tomorrow and so on and so on until people clue in and get a backbone when it comes to professional aviation.
Well, that's not quite how it really happens. A more apt analogy would be a Jon (UAL) coming into a room full of hookers (regionals) and telling them that none of them are going to get anymore business unless one of them offers a cut rate to do it. So, one of the hookers decides that she can "get in on the ground floor" of new business by offering a discount rate to this cheap ass Jon. She does, and then the next Jon (DAL) comes in and tells the other hookers that unless they offer a rate even cheaper than the first hooker, then she's going to get their business too. So, another hooker realizes that she's going to starve if she doesn't get some business soon, so she offers a rate that discounts even lower than the first hooker, and the process repeats itself over and over again.
It's not the regional carriers that are creating this problem. It's the mainline managements that pit them against each other.
Capitalism?
Communist liberal America-hating pig.The unfettered form, yes. Which is why I favor capitalism tempered with certain government controls. Mainline carriers should not be able to outsource flying to the lowest bidder and then avoid all legal obligations when something bad happens, such as an airplane crash that kills dozens of people.
