Originally Posted by
ghost401
Don't mean to hijack and excuse the post from a non airline guy but there's something that I have wondered and maybe stryker might like taking it in this direction more. Where do you all see the regional industry in years to come? I remember reading this article not too long ago on how the regional business model is not sustainable.
It makes sense. Sometimes being a contract company can be a fruitful success in certain sectors. I think this is mainly true when there is not too much competition and/or there's a variety of services or goods that can be provided within that industry. Look at military contractors, there's food, uniforms, transportation, weapons etc. But with the regional airlines there's one service and no short supply of investment groups ready to throw some money at an airline.
Seems to me that with time the number of regionals will reduce through bankruptcy's, acquisitions, and mergers. And I think the remaining carriers will have to work harder at retaining pilots and the age of the regionals being a stepping stone will be gone. I really don't see as many people getting into this career considering the cost, ability to secure loans, and atp rule.
But I could be wrong and everything remains more or less the same.
I believe the era of the Regional business model has come to an end. It made sense when fuel was cheap, pilots were constantly cycling through keeping costs low and you could send a Dash or CRJ to a small city five times a day becuase the plane cost about $20 a seat. Since fuel is through the roof and especially since 9/11, more people are looking to make a career out of the regionals and thus think the pay should be equivalent the the legacy carriers. Thats not how a Regional works. The model is based on an endless flow of cheap labor and cheap fuel. I think it is time for the Majors to bring the flying back in house, get rid of anything below 76 seats and probably reduce flights to the smaller markets.
I knew what I was getting myself into when I joined a Regional. I knew the pay and the work rules suck, but it was never meant to be my endgame. So, I just bide my time and hope the hiring floodgates open soon. Just my .02.