Notices
Major Legacy, National, and LCC

Scope, Scope, Scope!

Old 03-11-2010, 04:39 PM
  #31  
Gets Weekends Off
 
Joined APC: Jan 2008
Posts: 510
Default

the percentage of flights and the percentage of seats are two different things.
figures lie and liars figure.
mwa1 is offline  
Old 03-12-2010, 03:26 AM
  #32  
SDQ Base Chief
 
Flyby1206's Avatar
 
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,581
Default

Originally Posted by wally24 View Post
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.
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.
Flyby1206 is offline  
Old 03-12-2010, 05:33 AM
  #33  
Gets Weekends Off
 
Phrog Phlyer's Avatar
 
Joined APC: Dec 2008
Posts: 138
Default

Originally Posted by Mason32 View Post
Anybody have any update on the 7300 floor?
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.
Phrog Phlyer is offline  
Old 03-12-2010, 05:35 AM
  #34  
Gets Weekends Off
 
Phrog Phlyer's Avatar
 
Joined APC: Dec 2008
Posts: 138
Default

Originally Posted by mwa1 View Post
the percentage of flights and the percentage of seats are two different things.
figures lie and liars figure.
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.
Phrog Phlyer is offline  
Old 03-12-2010, 06:52 AM
  #35  
SDQ Base Chief
 
Flyby1206's Avatar
 
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,581
Default

deleted...
Flyby1206 is offline  
Old 03-12-2010, 07:58 AM
  #36  
Line Holder
 
Joined APC: Jul 2008
Posts: 66
Default

Originally Posted by Flyby1206 View Post
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.

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....
yancharlie is offline  
Old 03-12-2010, 08:19 AM
  #37  
Gets Weekends Off
 
Joined APC: Jun 2008
Position: Reclined
Posts: 2,168
Default

Originally Posted by Flyby1206 View Post
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.
This is part of the reason that wholly owned regionals are the preffered route. Example. Your flight from ORD to YYZ is delayed for mechanical. There are flights every hour doing the same run. Your return trip from YYZ to ORD is booked for 7 pax. More and more often you are seeing the wholly owned regionals cancel the original MX delayed flight, move the pax to the next YYZ flight... cancel the YYZ-ORD that was so delayed that it was within 10 minutes of another YYZ-ORD that had room for the 7 returning pax. The fuel savings from not running an empty flight, and a second flight with only 7 pax is significant.

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.
Mason32 is offline  
Old 03-12-2010, 09:37 AM
  #38  
Gets Weekends Off
 
Joined APC: Jan 2008
Posts: 510
Default

...and at AA there is a contractual limit of 7% of ASM's. hardly the end of the world.
mwa1 is offline  
Old 03-12-2010, 12:13 PM
  #39  
Gets Weekends Off
 
Beagle Pilot's Avatar
 
Joined APC: Dec 2008
Position: EMB-145
Posts: 427
Default

Originally Posted by mwa1 View Post
...and at AA there is a contractual limit of 7% of ASM's. hardly the end of the world.
We should insert the word "currently" in that phrase somewhere.

A beer says it's at least 10% by 2012.
Beagle Pilot is offline  
Old 03-13-2010, 08:58 AM
  #40  
Gets Weekends Off
 
Joined APC: Jul 2007
Posts: 390
Default

Originally Posted by Phrog Phlyer View Post
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.
The decision by this arbitrator was so bizarre that even the company was shocked. The arbitrator completely disregarded the clear intent of the stipulation and tortured and parsed the word "employed." According to this idiot, the company could furlough every single AA pilot and not trigger the floor. While arbitrators decisions are normally pretty unchangeable, this decision is so crazy that it's being taken to court.

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.
Wheels up is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
yamahas3
Major
27
02-12-2011 06:41 AM
Bucking Bar
Major
143
09-05-2009 04:39 PM
joel payne
Major
26
03-28-2009 07:12 PM
boilerpilot
Major
64
03-24-2009 02:00 PM
Daytripper
Major
4
08-19-2008 06:01 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices