Scope, Scope, Scope!
#32
Another thing: are regionals more economical? I really don’t think so. If you were to compare the pay scales of the pilots (not including other costs, FA’s and maintenance) there is a huge difference, but that cost saving is not being realized because now Delta has to pay a “fee for departure” and I would be willing to bet that that fee for departure more than makes up the difference in labor costs. Now I wish I had the numbers to back it, but I don’t. For an example, look at Republic. Republic’s branded operation is taking a pounding right now, even though they have some of the cheapest labor costs around. Another example would be Expressjet’s branded operation. It took a severe hit as well. If these regionals are so efficient, they are having an awful hard time operating by themselves.
The mainline operators have economies of scale on their side, they need to use this instead of just outsourcing it. Outsourcing was a thing of the 90’s, the latest in Harvard economics. Ask Boeing how that outsourcing thing went on their 787 program.
The mainline operators have economies of scale on their side, they need to use this instead of just outsourcing it. Outsourcing was a thing of the 90’s, the latest in Harvard economics. Ask Boeing how that outsourcing thing went on their 787 program.
I think the branded operations struggle for different reasons besides efficiency, mainly brand recognition and lacking the economies of scale that larger legacy carriers have.
I really hope AA/CAL can hold their ground on scope, but more importantly is to have the rest of the legacy carriers bring back that scope they have sold out. AA/CAL can only hold the line for so long before it becomes a serious competitive disadvantage trying to run MD80/737s against CRJ900s/E190s.
#33
APA lost it. Furloughed pilots were counted toward total employed pilots. Part of the reason they lost, maybe the main reason, was they demanded an answer from the arbitrator within the 30 day window. The arbitrator delivered their answer on schedule.
#34
True. The only really reliable figure is to follow the money. The company loves making money and will do whatever they think will make them the most money. Sometimes they make mistakes, but everything they do is geared towards profit.
#36
Line Holder
Joined APC: Jul 2008
Posts: 66
Fee-For-Departure contracts discourage efficiency. As long as the plane gets from A to B the regional gets the same pay. In the future I am sure regionals will have to take on more risk, to the point where they will be responsible for the majority of costs related to the flying, and will in turn share some of the revenue generated (if any). I believe Skywest has already signed some contracts with Airtran that are to this effect.
I think the branded operations struggle for different reasons besides efficiency, mainly brand recognition and lacking the economies of scale that larger legacy carriers have.
I really hope AA/CAL can hold their ground on scope, but more importantly is to have the rest of the legacy carriers bring back that scope they have sold out. AA/CAL can only hold the line for so long before it becomes a serious competitive disadvantage trying to run MD80/737s against CRJ900s/E190s.
I think the branded operations struggle for different reasons besides efficiency, mainly brand recognition and lacking the economies of scale that larger legacy carriers have.
I really hope AA/CAL can hold their ground on scope, but more importantly is to have the rest of the legacy carriers bring back that scope they have sold out. AA/CAL can only hold the line for so long before it becomes a serious competitive disadvantage trying to run MD80/737s against CRJ900s/E190s.
To solve all this airline dilemma is just to have ONE airline run in the U.S. everybody is merging or looking at merging to stop competing with one another, so us as a pilot group need to be united first, and seek after being one regulated airline, one contract for all, one national seniority list, one national payscale, it would not be perfect but the good will outweight the bad, and pilot will be again look at the job with interest....
#37
Gets Weekends Off
Joined APC: Jun 2008
Position: Reclined
Posts: 2,168
Fee-For-Departure contracts discourage efficiency. As long as the plane gets from A to B the regional gets the same pay. In the future I am sure regionals will have to take on more risk, to the point where they will be responsible for the majority of costs related to the flying, and will in turn share some of the revenue generated (if any). I believe Skywest has already signed some contracts with Airtran that are to this effect.
These types of things are happening more and more with the wholly owned regional carriers, and almost never happen at the subcontractor since they have no dog in the game beyond gettign their fee for departure.
So, while it is true the wholly owned regional is a better deal for the mainline company, they need the subcontractors to avoid being held hostage as Comair did to Delta.
and when you put it all together, it means fewer mainline jobs for everybody.
Last edited by Mason32; 03-13-2010 at 06:57 AM.
#39
#40
Gets Weekends Off
Joined APC: Jul 2007
Posts: 390
With regards to AE, AMR knows that the 50 seaters are essentially obsolete. In their openers to the pilot contract, they're demanding 1 for 1 replacement of 50 seaters with 70 seat class airplanes. Strangely, however, no mention of 100 seat class airplanes at all. AE is economically dead unless they can break the APA, like UAL and DAL have broken ALPA, which is exactly what they're trying to do. As usual, AA so-called management is in deep buffet and out of ideas and altitude. They've got three contracts up right now and all three unions are livid.
Last edited by Wheels up; 03-13-2010 at 09:08 AM.
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