Michael,
I'm not disagreeing with anything posted in this thread, but here is the reply I got in another thread from the gentleman you mentioned - the MEC had no choice.
Since I have no "inside sources", I can only presume one of two things - that the MEC heard something during their "fact finding" mission that put the fear of God (fear of Siegel, fear of unemployment?) into them, or they are convinced that MDA will be what some have called "a profit center" or "instantly profitable" or "the salvation of the company", or that they're drooling over the prospect of the "60 additional mainline aircraft".
As to the first, I honestly don't know what they could have "found" that wasn't already in the media or publicly available documents - we're losing money, we're at high risk of defaulting on the ATSB loan, we're at high risk of losing the RJ financing.
As to the second, I'll admit to being befuddled. Siegel complains about our high "unit costs" - CASM. His solution seems to be to throw RJ's at this problem. While I'd be the first to say that the RJ's have a place, anyone with the sense to come out of the rain knows that they have inherently higher CASM than mainline aircraft. Look at our 737-300 vs -400 or A319 vs 320/321 - the larger airplane has lower CASM. Look at Airbus and the A380 vs B747 - the lower CASM mostly comes from building a bigger airplane with more seats. Finally, look at what one analyst said about the E-190 - that it will have a 3-4% higher CASM than the CRJ900, which is a slightly smaller plane. It certainly seems as though Siegel is adding high cost "units" during a time of declining revenue per "unit" and hoping to make up the difference with employee concessions.
Finally, as to the third - for the life of me I cannot understand how anyone could get too excited about the prospect of new mainline aircraft when management says we may lose the financing for the RJ's. If we can't finance a $30 million RJ, how are we going to finance a $40 million mainline aircraft?
I apologize for getting carried away -
Jim