aflcio,
Don't forget the RASM part of the equation. I agree with you about SJ being expensive a/c to operate. It depends how much I can squeeze out of that capacity. Yes SJ's are expensive, but I stand to lose more money flying a guppy (per departure) with a 60% load vs. flying more SJ flights with 85% loads. It's all in the mix and capacity. The problem is I'm in a cash conservation mode. The company will take a $500 loss per departure on an SJ vs. $2000 loss per departure on a guppy. Take a market that has 4 737 trips. We lose $8000 per day. We convert to 8 SJ's and lose $4000 a day. I still lose money, but I'll at least live a little bit longer, not by much. Given the fact that SJ are on a fee per departure, we (should/have to) get our operating costs for guppies to be lower per departure than an SJ. With lower costs, I can compete against low fare carriers. I will need the extra capacity (737 instead of SJ) in order to do this. We have to get our costs down in order to live and fight another day. Yes, we as the employees are cleaning up certain people’s mess. Can't do much about that now. We have to survive and thrive. This way we'd guarantee ourselves and our customers mainline flying. The fare environment is not going to fix itself in the near future (2 to 3 years), no matter what people say. It's going to suck, but I'd take that over the alternative.