<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by SEA_Tigger:
Are the UAX airlines losing money? As in *lots* of money?
Even with a higher CASM then United, I would think the UAX airlines must be making money, otherwise they would not still be in business, much less expanding.
If UAX could not justify a route, then UAX would not be flying it. US' affiliates have ended service to many cities in the Northeast because the passangers are not there, even for little planes like J-41s.
On the UAX flights I am on, unless it is really odd hours (first or last flight of the day), they are usually full or nearly full, so if this is a pattern, I imagine would be getting decent revenue from their load factors.
[This message has been edited by SEA_Tigger (edited 02-04-2003).]</font>
Loadfactors don't matter to most of the UAX carriers. They are paid on a fixed fee per departure system by UA. Whether the CRJ has 5 or 50 people, the UAX carrier gets a fixed amount. UA assumes the risk.
The real danger for the UAX carriers is that a BK UAL will demand lower rates and thus reduce revenue.