Originally Posted by
Cubdriver
Some (SKW) have publicly stated they'll go out of business before they'll raise pilot pay to attract and retain enough pilots. That could just be rhetoric but I suspect they mean it because the problem is quite serious. Their basic business model is predicated on an endless supply of cheap labor to keep things moving. That means they really can't do business without a ton of cheap pilots and the cost of redesigning things is so high that it is not practical in the market segment where they are forced to compete. This dependence on endless cheap labor is common in the regional airline industry and it is a serious problem much like fuel hikes and recessions of the past.
Yes. Cheap labor is the only reason the regional industry exists in it's current form. If pilot labor cost significantly more for regionals, majors would just shut it down, bring the flying in house, and drop the non-profitable routes. Congress might whine about that last, but that's what deregulation is all about...the gubmint might have to pony up for some more EAS to retain service to Podunk Falls.