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Strategies & Market Trends : The picks
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To: Craig Gantner who wrote (5305)2/18/1997 1:36:00 AM
From: p. webster   of 6124
 
Re: Smaller carriers

Yes. But the underlying issue that started this fare war is the contract dispute between pilots and big airlines. Small carriers do not pay their pilots anywhere near what the big guys do (so I hear from public sources), which is one way that the small carriers can keep costs down. The big guys have their heels in to not increase pilots' salaries. What I do not know, and would be interested to find out, is whether small carriers pilots are union. If they are not union, the small carriers would benefit greatly by any forthcoming strike.

Every time I've checked fares (which is not that often) during a price war, the low cost carriers still beat the big guys discounted prices.

I'm really not a specialist in this industry, but these are some of the ideas that I have about the situation. I could be wrong, and would welcome additional information.

P. Webster
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