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Old 11-01-2014, 01:16 PM
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OutsourceNoMo
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Joined APC: Nov 2014
Position: E175, Seat 7A
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2013 financial statements for the new American Airlines show that the cost of operating regional fleet is higher than the revenue it generates. Fee-per-departure structure may mask true operational numbers as legacy carriers are prematurely retiring small RJ airframes to avoid overwhelming maintenance, and inflation cost. Regional aircraft may be near-term cost control solutions that present indirect and unadvertised long-term charges. APA should investigate how regional aircraft drive need for additional gate space, and personnel. Banking hub schedules and frequency outsourcing further push runway, airport, and airspace capacity constraints. “With more than 13,000 regional airline flights every day, regional airlines operate more than 50 percent of the nation’s commercial schedule,” says raa.org. How many millions of minutes worth of delays are suffered system-wide to accommodate the crowding effect of regional aircraft?

American Airlines may benefit from a total delay impact analysis to understand how regional aircraft bring additional congestion that multiply system-wide staffing, fuel burn, and cancellation costs. What other hidden charges can APA identify in partnership with management to motivate gradual shift away from smaller airframes? Such cost control analysis may best be conducted by reputable aviation consultants whose authority is our best means to partner with management. APA should consider the expense of commissioning expert analysis as opportunity cost to expand membership base through Scope thus driving revenue.

Inflation directly raised regional aircraft CASM beyond 50-seat unit RASM in most markets. Many 76-seat aircraft routes may eventually become unprofitable in ten years. Why has American Airlines not ordered mainline Group I aircraft at this time? Will APA then outsource 99-seat E190 or C-Series airframes? Retired ExpressJet Airlines Vice-President Charlie Tutt stated in 2011, "ExpressJet [airlines] will operate 100-seat jets for Delta and United in ten years." Is APA aware that Republic Airlines has ordered 40 single-class 130-Seat C-Series Bombardier jet aircraft? Has APA determined how Republic will deploy these aircraft? Will JCBA allow Republic to codeshare such aircraft with American? Last week, Bombardier VP Ross Mitch publicly stated that the C-Series airframe is a “transcontinental airframe” which perfectly compliments Republic Airlines business plan. Will we one day outsource A319 flight operations? Where does outsourcing stop?

APA inspired professional aviators with its 1997 Scope position that all regional jets should be operated by mainline pilots, but where is this overt resolve today? USAPA President Gary Hummel exercised similar resolve in a September 2014 letter addressed to APA President Captain Keith Wilson. Where is Captain Wilson’s response to this letter? It is time for APA to reaffirm its position regarding who operates jet aircraft for American Airlines with meaningful action. American management may seek to outsource 81-seat aircraft by way of adding five additional seats to current 76-seat regional airframes. However, APA should consider that this request only be accommodated under circumstances that these 81-seat aircraft are added to American mainline operating certificate. Outsourcing additional physical seats risk current and future mainline Group I and Group II aircraft. Transferring regional lift to mainline may not be difficult if a pilot shortage triggers regional airline failure to meet completion factor performance. Insourcing would need to be accomplished over several CBA negotiations to allow DALPA and UALPA to coordinate insourcing.

How can APA partner with management to remedy an alarming absence of Group I aircraft? Industry experts label single-aisle, 99 to 120-seat class airframes between the size of so-called “regional” planes and Airbus/Boeing as the missing niche fleet of US airline industry. Delta is actively joining AirTran B717s into its fleet. Suprisingly, American Airlines has chosen not to order Group I aircraft. Can American Airlines, as “the best airline in the world,” not compete using it’s own product? The absence of AAL Group I orders suggest new American Airlines favors regional lift over Group I operation. Legacy airlines are maintaining status quo numbers of physically outsourced seats on fewer RJ airframes. This is likely to continue as SkyWest Airlines, Trans States Holdings, Republic Airlines, and American International Group Inc. have hundreds of large regional jet orders booked. However, DC-9 equivalent jet orders by third-party companies should have no bearing on how professional pilot associations conduct business.

The cost of operating 99-seat aircraft from point A to point B is not significantly larger than 76-seat costs between the same two points. In May 2014, American President Scott Kirby outlined similar logic at the Wolfe Research airline investor conference regarding up-gauging Airbus 319 aircraft orders to 321 models. Kirby stated that additional costs of larger airframes are justified by extra seat revenue. Should American Airlines not operate 99-seat Group I aircraft on regional routes to allow for this opportunity? There is a market for lesser capacity regional aircraft, but 99-seat mainline aircraft will become increasingly relevant.

Still, it is ironic that United gorged itself on regional flying to the point that such flying became a financial liability. At one point roughly 63% of UAL departures were once outsourced, which in part hampered United Airlines’ post-merger profitability. UALPA pilots and other labor groups gorged on temporary contract improvements at the cost of thousands of pilot furloughs. APA, as a long-term stakeholder, must partner with management to guard against short-sighted outsourcing trends. We must not repeat United's history. Guard against permanent actions incentivized by short-sighted rewards. Even notable aviation consultants William Swelbar and Michael Boyd believe that mainline pilot unions will not repeat past outsourcing mistakes. We only have two unions left in the country who control this outcome! Have APA and ALPA learned from past outsourcing mistakes?

APA must broaden conversation regarding Scope to include its effect on traffic congestion, environmental impact, flight safety, pilot professional standards, and pilot shortages. Regional aircraft with high flight frequencies cause air traffic delays. How many additional gallons of fuel do regional jets directly and indirectly cause other aircraft to consume in relation to traffic delays? Much of these delays are avoidable if airlines would "ride share" more ASMs on relatively larger mainline aircraft. APA has an environmental responsibility to halt the unforeseen cost of regional air traffic congestion.

"Regional operators" increasingly operate aircraft beyond 800nm. Many regional airlines such as ExpressJet, Skywest, Republic, and Endeavor airlines resemble national air carriers. It may be more environmentally favorable for legacy passenger flows to connect regionally using local hubs. Connecting passengers thru non-local hubs on outsourced airlines beyond 800nm may not be ecological. Outsourcing these longer routes may offer little advantage when ASMs can be shifted through the historical method of regionally connecting traffic. Otherwise, legacy airlines continue unnecessary CASM and carbon emission serving regional airports from multiple hubs with excessive frequency. Shifting regional airport ASMs into consolidated mainline aircraft using less hubs and/or frequency is our industry’s best answer to controlling capacity and costs in an environmentally responsible manner.

Even Russian Premier Vladimir Putin once told the European Union that banning regional aircraft is a meaningful alternative to EU airline carbon tax schemes! Banning these aircraft would open our skies, lower airline carbon emission, and potentially reduce tax liability. Has APA brought before American Airlines the notion of reducing regional airline operations to offset AAL net carbon footprint? Would establishing lower unit carbon output be a valid alternative to paying proposed EU carbon taxes? Has American public relations considered the marketing value of abandoning regional airline environmental footprints? Could the world’s largest airline one day become the world’s greenest airline?

Regional airline accidents such as the February 12, 2009 Colgan Air or August 26th, 2006 Com Air disasters lead many to question relative safety of regional flight operations. While the FAA and RAA tout "one level of safety," one must ask if there is one level of mentorship, apathy, and financial distress among regional and mainline pilots? How does apathy and financial insecurity induced by whipsawing poverty wages, and lower job security generate stress that inhibits professionalism in an environment devoid of stability? Our recognition of how diminished motivation compromises professional competence is relevant to flight safety. We should not compartmentalize the human condition apart from FAA evaluation standards. How do per capita ratios of single engine taxi compliance, failed check rides, or FOQA stick shaker events at outsourced operations compare to mainline operations? We have a social responsibility to understand how these factors cause shortages of pilots no longer willing to accept employment under these conditions. Third-party airlines new hire pilot initial class “no show” rates are at all time highs.

As good stewards concerned with fuel usage, we should further concern ourselves with a lack of turbo-prop utilization. Turbo-prop aircraft are the only true regional airliners. APA may also partner with aircraft manufacturers ATR and Bombardier to stress merits of the truly regional and environmentally “green” turbo-prop. One must concede that regional aircraft make sense on a limited number of regional routes, but third party airlines should not fly distances exceeding 800nm. Turbo-prop aircraft further reduce congestion and emissions by operating in lower altitude regimes under core mainline jet traffic. APA may investigate the merits of reintroducing turbo-props, but any 99-seat turbo-prop model such as ATR's and Bombardier’s latest proposed airframes should be Group I aircraft.

Potential impacts of pending pilot shortages regarding Scope may impact a wide-range of indirectly related subjects. You may know that international pressures lobbied the “Fair Treatment of Experienced Pilots Act” (aka. “Age 65 Law) to allow foreign airline ICAO compliant age 60+ flight crew access to US markets. Could an unresolved pilot shortage potentially lead to relaxed regulations governing foreign pilot entry, foreign ownership, and cabotage? CEOs of major US air carriers act as Airlines for America (Airlines For America |) board members. Contrary to the Regional Airline Association, Airlines for America remains oddly silent regarding pending pilot shortages, but its leadership works in concert to exacerbate a pilot shortage through attempts to further outsource airframes.

Why does the A4A national airline policy initiative nationalairlinepolicy.com call for “more airline frequency?” Further study is needed to understand incentives driving Airlines for America. APA may consider The Hegelian Dialectic also known as the Problem - Reaction - Solution method. Hegelian Dialectic is a means by which corporations may attempt to increase profit through manipulating perception to achieve unpopular goals. These goals become attainable with the creation of perceived, or actual problem(s) management could reasonably anticipate. Management’s creation or allowance of issues relative to pilot staffing may seek to generate overreaching government solution(s) to an otherwise unachievable result. Could a pilot shortage be used to alter FAR 117, or pilot qualification standards? Will foreign airlines and investors lobby a pilot shortage as an opportunity for expanded Cabotage?

Regarding aircraft orders, is American Airlines avoiding C-Series, MRJ, and E195 orders to underscore the importance of an 81-seat scope request? Has APA verified the timeline of order backlogs for B717 type aircraft in production today? How has Republic Airways managed to secure such C300 Series aircraft and not American Airlines? How have regional airlines managed to secure e170/175 orders similar to e190/195 aircraft? Do not accept Problem - Reaction - Solution fear tactics during contract negotiations where management may indicate that JCBA ratification of 81-Seat outsourcing is the only "solution." APA should preemptively identify American’s business needs to head off such tactics. Solutions could involve American Airlines leasing C300 Series Bombardier aircraft from Republic Airways for mainline operation.


“You never let a serious crisis go to waste. And what I mean by that [is] it's an opportunity to do things you think you could not do before,” says Rahm Emanuel. What unachievable solutions can Airlines for America realize through exploiting a pilot shortage and avoiding Group I aircraft orders? Similarly, what can APA do to prepare alternate solutions that may better serve our passengers, environment, and air transportation system? Professional labor unions have more consolidated influence than ever before. Pilot unions as a whole can partner with management to enforce artificial limits similar to existing airline regulation. Artificially limiting outsourcing may bring meaningful opportunity for management to partner with ALPA and APA. Now is the time to fashion holistic mechanisms of influence beyond traditional boundaries. APA and ALPA may best position for international consolidation and cabotage by expanding span of control thru improving the Scope of flying performed by its membership. I challenge APA to partner with American management and transform our air transportation system using never before tried campaigns outside of current paradigm.

A notable and growing percentage of APA members are former regional pilots who are acutely aware that surrendering Scope today weakens our profession tomorrow. Industry standard frequency based competition establishes no relative legacy airline advantage. Net reduction of regional lift is a near-term solution to looming pilot shortages. APA must reaffirm its 1997 position that all regional jets are to be flown by mainline pilots through meaningful action. We must educate membership to observe how inflation and pilot shortages are key methods of control over regional airline industry. Failure to realize this opportunity to protect the Scope of flying performed by mainline pilots may expose current APA leadership. Performance in this regard is a moral obligation. A labor force that empowers membership reduces apathy and enjoys greater unity.

The 1970’s brought regional airlines flying twenty seat turboprop aircraft, but now regional airlines threaten to envelope modern day DC-9 variants. Regional airlines and code-sharing directly threaten the longevity of mainline operations. APA must not accept nor propose any "eleventh hour" JCBA Section 1 Concession(s) Scope, code sharing, or joint business agreement . Preserve the relevancy of professional pilot unions for future generations.

Too many generations of pilots have suffered furlough brought by outsourcing. No pilot demographic has suffered more than furloughed mainline pilots victimized by Scope reductions. “If each pilot makes his or her union decisions based on what’s best for the group [as well as] profession instead of self-interest, we will succeed." I believe we can leave this industry better than we found it. Thank you so much for your consideration.

Respectfully,
*redacted*
*redacted*
*redacted*
*redacted*


A Picture of Outsourcing:
425 US Airways East & West post2005 hires were asked to namethe longest routes they had ever flown for so-called regional airlines—these were their answers:

[attachment=1]map.gif[/attachment]

ATL-GGT, ATL-TUS, ATL-GJT, ATL-MTJ, ATL-ELP, ATL-SXM, ORD-NAS, ORD-GEG, ORD-YYC, IAH-NAS, IAH-ROC, ATL-YHZ, ATL-TUS, ATL-STX, ATL-KIN, ATL-ASE, EWR-OMA, EWR-OKC, EWR-YYT, EWR-MSP, DEN-YEG, DEN-MKE, DEN-PIT, DEN-ATL, DEN-MLI, DEN-CMH, DTW-MTY, IAD-COS, JFK-SAT, JFK-AUS, SFO-AUS, SFO-SAT, IAH-ISN, IAH-RSW, KIAH-YYZ, KIAH-YUL, IAH-PSP, IAH-BFL, IAH-BOI, IAH-YEG, IAH-SFO, IAH-ACY, IAH-YYZ, LAX-XNA, KLGA-KXNA, KLGA-KDFW, KLGA-KIAH, KLGA-KOMA, KLGA-KMCI, MEM-DEN, MEM-PHX, MIA-CMH, MIA-PIT, MIA-CLE, MIA-IND, MIA-STX, MSP-LAX, MSP-LAX, ORD-YQR, ORD-ASE, ORD-COS, ORD-LAX, ORD-YHZ, PHL-IAH, SLC-YUL

From To Distance
ATL (33°38'12"N 84°25'40"W) GGT (23°33'45"N 75°52'39"W) 866 mi
ATL (33°38'12"N 84°25'40"W) TUS (32°06'58"N 110°56'28"W) 1541 mi
ATL (33°38'12"N 84°25'40"W) GJT (39°07'21"N 108°31'36"W) 1391 mi
ATL (33°38'12"N 84°25'40"W) MTJ (38°30'35"N 107°53'39"W) 1352 mi
ATL (33°38'12"N 84°25'40"W) ELP (31°48'26"N 106°22'35"W) 1282 mi
ATL (33°38'12"N 84°25'40"W) SXM (18°02'27"N 63°06'32"W) 1701 mi
ORD (41°58'46"N 87°54'27"W) NAS (25°02'20"N 77°27'58"W) 1312 mi
ORD (41°58'46"N 87°54'27"W) GEG (47°37'09"N 117°32'07"W) 1498 mi
ORD (41°58'46"N 87°54'27"W) YYC (51°06'50"N 114°01'13"W) 1385 mi
IAH (29°59'04"N 95°20'29"W) NAS (25°02'20"N 77°27'58"W) 1148 mi
IAH (29°59'04"N 95°20'29"W) ROC (43°07'09"N 77°40'19"W) 1331 mi
ATL (33°38'12"N 84°25'40"W) YHZ (44°52'51"N 63°30'31"W) 1357 mi
ATL (33°38'12"N 84°25'40"W) TUS (32°06'58"N 110°56'28"W) 1541 mi
ATL (33°38'12"N 84°25'40"W) STX (17°42'06"N 64°48'06"W) 1638 mi
ATL (33°38'12"N 84°25'40"W) KIN (17°56'08"N 76°47'15"W) 1180 mi
ATL (33°38'12"N 84°25'40"W) ASE (39°13'19"N 106°52'06"W) 1304 mi
EWR (40°41'33"N 74°10'07"W) OMA (41°18'11"N 95°53'39"W) 1134 mi
EWR (40°41'33"N 74°10'07"W) OKC (35°23'35"N 97°36'03"W) 1325 mi
EWR (40°41'33"N 74°10'07"W) YYT (47°37'07"N 52°45'07"W) 1162 mi
EWR (40°41'33"N 74°10'07"W) MSP (44°52'55"N 93°13'18"W) 1008 mi
DEN (39°51'42"N 104°40'23"W) YEG (53°18'35"N 113°34'47"W) 1019 mi
DEN (39°51'42"N 104°40'23"W) MKE (42°56'49"N 87°53'49"W) 896 mi
DEN (39°51'42"N 104°40'23"W) PIT (40°29'29"N 80°13'58"W) 1290 mi
DEN (39°51'42"N 104°40'23"W) ATL (33°38'12"N 84°25'40"W) 1199 mi
DEN (39°51'42"N 104°40'23"W) MLI (41°26'54"N 90°30'27"W) 752 mi
DEN (39°51'42"N 104°40'23"W) CMH (39°59'49"N 82°53'32"W) 1154 mi
DTW (42°12'45"N 83°21'12"W) MTY (25°46'43"N 100°06'25"W) 1480 mi
IAD (38°56'51"N 77°27'36"W) COS (38°48'21"N 104°42'03"W) 1463 mi
JFK (40°38'23"N 73°46'44"W) SAT (29°32'02"N 98°28'09"W) 1587 mi
JFK (40°38'23"N 73°46'44"W) AUS (30°11'40"N 97°40'12"W) 1521 mi
SFO (37°37'08"N 122°22'32"W) AUS (30°11'40"N 97°40'12"W) 1504 mi
SFO (37°37'08"N 122°22'32"W) SAT (29°32'02"N 98°28'09"W) 1482 mi
IAH (29°59'04"N 95°20'29"W) ISN (48°10'41"N 103°38'32"W) 1330 mi
IAH (29°59'04"N 95°20'29"W) RSW (26°32'10"N 81°45'19"W) 861 mi
KIAH (29°59'04"N 95°20'29"W) YYZ (43°40'38"N 79°37'50"W) 1280 mi
KIAH (29°59'04"N 95°20'29"W) YUL (45°28'14"N 73°44'27"W) 1584 mi
IAH (29°59'04"N 95°20'29"W) PSP (33°49'47"N 116°30'24"W) 1269 mi
IAH (29°59'04"N 95°20'29"W) BFL (35°26'02"N 119°03'28"W) 1428 mi
IAH (29°59'04"N 95°20'29"W) BOI (43°33'52"N 116°13'22"W) 1482 mi
IAH (29°59'04"N 95°20'29"W) YEG (53°18'35"N 113°34'47"W) 1854 mi
IAH (29°59'04"N 95°20'29"W) SFO (37°37'08"N 122°22'32"W) 1635 mi
IAH (29°59'04"N 95°20'29"W) ACY (39°27'27"N 74°34'38"W) 1345 mi
IAH (29°59'04"N 95°20'29"W) YYZ (43°40'38"N 79°37'50"W) 1280 mi
LAX (33°56'33"N 118°24'29"W) XNA (36°16'54"N 94°18'28"W) 1371 mi
KLGA (40°46'38"N 73°52'21"W) KXNA (36°16'54"N 94°18'28"W) 1147 mi
KLGA (40°46'38"N 73°52'21"W) KDFW (32°53'50"N 97°02'16"W) 1389 mi
KLGA (40°46'38"N 73°52'21"W) KIAH (29°59'04"N 95°20'29"W) 1416 mi
KLGA (40°46'38"N 73°52'21"W) KOMA (41°18'11"N 95°53'39"W) 1148 mi
KLGA (40°46'38"N 73°52'21"W) KMCI (39°17'51"N 94°42'50"W) 1107 mi
MEM (35°02'33"N 89°58'36"W) DEN (39°51'42"N 104°40'23"W) 872 mi
MEM (35°02'33"N 89°58'36"W) PHX (33°26'03"N 112°00'42"W) 1264 mi
MIA (25°47'43"N 80°17'24"W) CMH (39°59'49"N 82°53'32"W) 990 mi
MIA (25°47'43"N 80°17'24"W) PIT (40°29'29"N 80°13'58"W) 1013 mi
MIA (25°47'43"N 80°17'24"W) CLE (41°24'34"N 81°51'17"W) 1080 mi
MIA (25°47'43"N 80°17'24"W) IND (39°43'02"N 86°17'41"W) 1020 mi
MIA (25°47'43"N 80°17'24"W) STX (17°42'06"N 64°48'06"W) 1139 mi
MSP (44°52'55"N 93°13'18"W) LAX (33°56'33"N 118°24'29"W) 1535 mi
MSP (44°52'55"N 93°13'18"W) LAX (33°56'33"N 118°24'29"W) 1535 mi
ORD (41°58'46"N 87°54'27"W) YQR (50°25'55"N 104°39'57"W) 990 mi
ORD (41°58'46"N 87°54'27"W) ASE (39°13'19"N 106°52'06"W) 1013 mi
ORD (41°58'46"N 87°54'27"W) COS (38°48'21"N 104°42'03"W) 911 mi
ORD (41°58'46"N 87°54'27"W) LAX (33°56'33"N 118°24'29"W) 1744 mi
ORD (41°58'46"N 87°54'27"W) YHZ (44°52'51"N 63°30'31"W) 1239 mi
PHL (39°52'20"N 75°14'27"W) IAH (29°59'04"N 95°20'29"W) 1325 mi
SLC (40°47'18"N 111°58'40"W) YUL (45°28'14"N 73°44'27"W) 1941 mi
Total: 84344 mi
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