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Old 09-06-2014 | 09:44 AM
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Binksy
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Joined: Jul 2014
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Default They don't need us like we think they do

I have a slightly different perspective on the way mainline is treating the regional carriers the past few years. In my opinion, and I don't like saying it, they don't need us nearly as much as we'd like to believe they do. Look at the following numbers. This is a list of all the 50 seat and smaller aircraft that regional carriers currently fly:

Whiskey 71 200s
Commutair 21 Qs
Great Lakes 31 B1900/Emb
PSA 35 200s
Silver 34 Saabs and B1900
Endeavor 100 200s
Mesa 2 200s
Piedmont 43 Dash
Transtates 25 145s
Envoy 177 145s
Republic 70 145s
Expressjet 106 200s
250 145s
Skywest 155 200s
45 120s

Total 1165

10 Pilots per plane = +/-12,000 Pilots

Does anyone believe that nearly 1,200 50 seat and smaller planes will be flying for regional carriers in the next 5-10 years? If not, how many are currently being parked, and how many will be parked in the near future? One of the reasons mainline is more than willing and able to come to regionals for concessions (and threaten a very real shut down) is because they are fully aware of the fact that the regional model as we know it is on its way out.

Sure, they are bringing in larger 76 seat jets to replace these smaller planes, but not at the rate and quantity that they plan on parking the smaller ones. And sure, they need pilots in the short term to fill seats as they transition to larger jets and take the flying back in house to mainline, but they surely don't need 12,000 pilots flying around in 50 seaters, Saabs, and DHC's.

Prime example, look at Endeavor. They are getting 40 900's yes. But they are losing 140+ 200's. Does Delta really want to keep Endeavor around? Does Delta really care that Endeavor can't fill classes and their attrition is sky high? No. Because they know that they only need Endeavor around to provide cheap lift while they get the 717s fully up and running. They don't care if 2 people or 20 people show up to class. They don't care if 10 or 100 people leave this month. They are going to park the 200's regardless. They may feel a small pinch momentarily as they juggle the routes and accommodate for higher attrition, but in the long term they only need 900-1000 pilots there anyway to fly 81 900s.

In order to staff mainline operations, management knows that the regional level has to shrink. We are their largest source of pilots from which to draw, and the only way mainline can keep staffing for the next 10+ years is to pull from the 20,000 pilots at the regional level. So what is their plan to accommodate for this? Let the regionals shrink. Replace 1,200 50 seat and smaller aircraft with a much smaller fleet 76 seat aircraft, and the attrition that occurs at the regional level will be countered by the shrinking need for pilots there due to a smaller number of aircraft needed end state.

Some will say "Hold the line. Stand strong. They need us. The shortage is coming!" Sure, a shortage is coming, but mainline's plan for it is in full swing: consolidate and reduce the regional market to compensate for the shortage. They need us at mainline, not at the regionals. They are more than happy to slowly chip away at the regionals, and the latest rounds of contract negotiations and concessionary deals are just management's way of deciding who to chip at first and fastest.

This is why Pinnacle/Endeavor voted yes (the threat of shutdown was very real). This is why PSA voted yes (same reason). This is why Piedmont will most likely vote yes (same reason). You can see what is happening at Envoy by them voting no (slow wind down, unfortunately). Mainline doesn't need us nearly as bad as we'd like to believe and they are more than willing to let heads roll in the short term because they have a very well thought out long term plan.

Sorry for the lengthy post, but had to offer a different perspective. Take it for what it's worth.
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