Quote:
Originally Posted by BoilerUP
Let somebody else bear the financial risk of financing/leasing new airplanes and let the mainline save their own cash & credit?
To answer your question. No.
Just because one company owns another doesn't mean it's liable for all it's debts. Google Bank of America and Countrywide to get an idea of that. Take a look at IBM. AE currently has it's own debt and is liable for it.
They outsource because other companies can have different infrastructure as I wrote earlier. The different contractual language, labor relations, training departments, retirements, etc as well as lower risk from employee actions. With the multiple fleet types, old pilot group, operations and infrastructure I wouldn't be surprised if AE is one of the costliest regionals in the industry. Behind them I'd put Comair. Take a look at the operation cost per ASM for XJT, SKYW, RAH, PNCL, or Mesa and you'll see that each is different.
Do you think UPS is concerned about the financial risk of financing/leasing caravans or do you think they outsource that flying to other companies because it's cheaper in the grand scheme of things?