Originally Posted by
Scoop
Sailing,
Interesting topic - numbers close to what? Do any of these Regionals fly the RJs profitably without FFD? If essentially the DCI carriers are not actually operating profitably without being subsidized by mainline I don't see how an economic analysis would show anything other than it was not possible.
I agree that 76 seaters being flown at mainline probably cannot compete economically with 76 seaters being flown at a connection carrier. But I also believe that a standalone RJ operator flying 76 seaters cannot compete economically with 76 seaters at DCI.
If this were not true - where are all the standalone RJ operators?
DCI carriers are operating at below a standalone profitability - if you take away mainline support. Comparing 76 seaters at mainline (without mainline subsidies) is not a valid comparison.
Scoop
Yep. IndyAir was one of, if not the, highest funded start ups in airline history with I think over 300M, a robust route map, gates and routes from day one. Oil was under 50/bbl (I think around 35 most of the time) and they got plenty of free start up press. Their biggest competitor, UAL, was gushing blood in BK and pulling down as fast as logistically possible, and the other legacy's were still reeling as well. They started to get A319's and were getting good passenger reviews. They shut down completely and liquidated barely 2 years later. All or predominate RJ airlines are pigs destined for slaughter without the sweet nectar of Daddy Warbucks legacies throwing cash at their ridiculous business models.