Originally Posted by
johnso29
Here's the problem. The regional model is broken. Consolidation is occurring at the regional level. But BK is occurring too. In 2007 Pinnacle airlines bought Colgan, & then in 2010(or 2011?) they bought Mesaba. Well Pinnacle went BK, & shutdown Colgan. Now Pinnacle is being cut in half. Comair has been shut down. American Eagle is BK.
My point is this. These regionals have for years relied on gravy train fee for departure contracts where they were paid by the block hour, fuel was paid for, mx was paid for, etc. Well these contracts are no more. And now these regionals fight so hard for the scraps the Legacy management teams offer that they take it at a loss. So they can't make money.
Add to that, they've been struggling to staff themselves for years. In 2010, Pinnacle airlines was hiring FO's with temporary paper commercial certificates to fly 50 seat jets! The ink signature of the DPE was barely dry. So now that a C-172 costs $150 an hour to rent, there are very few people training for an airline job. And when the retirements start & the RJ drivers start going to the Majors, who will replace them?
There leverage exists with the labor. The pendulum is swinging back our way. Management doesn't have BK on their side anymore.
Unfortunately your argument is flawed, Skywest Inc is making money even in the Obama economy. True, you are about the others. Skywest Inc is a monster, something like 7000 pilots and cash on hand. Also a better balance sheet compared to most airlines out there! Alliances, Regionals and Code Shares are the future of this industry, and that's not a good thing but fact!
Like most guys said the genie is out of the bottle. So now guys have a decision to make, stay at the regional or move on? I don't care what you guys say no buddy knows what's gonna happen in the next 10 years...no buddy!
This whole thing smells like a setup and were allowing it for cash and threats of BK.