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flynavyj · 11-11-2008, 06:40 PM

[quote=Mason32;496704]
and you have eliminated one ENTIRE part 121 airline adminsitration, from CEO down to rampers in the process. You can afford to accept the higher longevity and/or labor costs and still come out ahead. Come on, your not seriously trying to argue that running two administrations, and supporting staffs, for two seperate airlines is cheaper than running one slightly larger adminstration for the same total number of aircraft.

You don't really eliminate the management, you finally actually control the management. I believe what you're saying is that the total costs of operating say United's Management and the Management at Trans Stateswould outweigh simply operating the management at United alone, just expanded to cover the additional flying that would now be done by United Mainline. I'd wonder just how true that actually could be. You have to remember that United isn't paying for the management at Trans States. Also, pay scales go much deeper than pilot/flight attendant contracts, while we're a portion of the payscales, you have to take into account rampers, schedulers, dispatchers, fuelers, caterers, mechanics, executives, training departments, etc. All of which at the contract regional will be less than a comparable cost on the mainline side. So, in order to get the cost savings from labor alone, you'll be negotiating compensation decreases across the full company spectrum. Imagine trying to convince not one or two groups, but many different independent yet related facets to take pay cuts and compensation cuts in order to bring more flying in to house...

Do you really think the operational cost of flying a 50 seat aircraft is any different at one regional than at another? With the exception of pay scales the jet burns the same pounds per hour regardless of who's name is one the side, or in small letters by the door. So, whatever mainline pays a subcontractor has to cover ALL the operational costs, plus leave a profit for the subcontractor... with an in house owned regional you have the exact same scenario, but the profit stays in house going back into the mainlines bottom line, not into some other corporation.

I have a difficult time believing that any mainline management group is "losing" money on regional operations. Some of those profits will still find their way back into the mainline pockets.

11-11-2008, 06:40 PM	#202 (permalink)
flynavyj Gets Weekends Off Joined APC: Jul 2006 Position: Desk Posts: 1,063	[quote=Mason32;496704] and you have eliminated one ENTIRE part 121 airline adminsitration, from CEO down to rampers in the process. You can afford to accept the higher longevity and/or labor costs and still come out ahead. Come on, your not seriously trying to argue that running two administrations, and supporting staffs, for two seperate airlines is cheaper than running one slightly larger adminstration for the same total number of aircraft. You don't really eliminate the management, you finally actually control the management. I believe what you're saying is that the total costs of operating say United's Management and the Management at Trans Stateswould outweigh simply operating the management at United alone, just expanded to cover the additional flying that would now be done by United Mainline. I'd wonder just how true that actually could be. You have to remember that United isn't paying for the management at Trans States. Also, pay scales go much deeper than pilot/flight attendant contracts, while we're a portion of the payscales, you have to take into account rampers, schedulers, dispatchers, fuelers, caterers, mechanics, executives, training departments, etc. All of which at the contract regional will be less than a comparable cost on the mainline side. So, in order to get the cost savings from labor alone, you'll be negotiating compensation decreases across the full company spectrum. Imagine trying to convince not one or two groups, but many different independent yet related facets to take pay cuts and compensation cuts in order to bring more flying in to house... Do you really think the operational cost of flying a 50 seat aircraft is any different at one regional than at another? With the exception of pay scales the jet burns the same pounds per hour regardless of who's name is one the side, or in small letters by the door. So, whatever mainline pays a subcontractor has to cover ALL the operational costs, plus leave a profit for the subcontractor... with an in house owned regional you have the exact same scenario, but the profit stays in house going back into the mainlines bottom line, not into some other corporation. I have a difficult time believing that any mainline management group is "losing" money on regional operations. Some of those profits will still find their way back into the mainline pockets. __________________ -Let's Toast the Rich...With the Cocktail of Our Choice!