Originally Posted by
SmitteyB
Well, you are a notorious flame-baiter, so your opinion and posts don't hold much water.
I don't personally believe that we will see a "catastrophic collapse" of the regional model like many of you suggest. It will shrink as the big 3 add small narrow body airplanes, but the network carriers will not function without a cheap feed system. They can't compete with the likes of SWA without it. It's too important to the NAS. The majors will preserve their cheap feed. They are obsessed with it. Look at how many regionals are now flying for AA. The whipsaw is the tool to keep labor costs at regionals AND mainline in check.
There will absolutely be relaxation of the 1500 hour rule. They will get it. To think otherwise is foolish.
This is just the beginning. RAH will survive.
I'd hate to say it but the writing on the wall is there. Unless RAH pilots get paid significantly more and get a much better contract they are going to fail. The CPA leverage only works when you complete flights. Delta is known for pulling contracts when their regional partner is missing the numbers by a huge mark. Republic stock is down 75% YTD and will be worthless by the end of the year.
With the American regional aviation model broken, consolidation is the answer | CAPA - Centre for Aviation
Republic Airways Holdings Inc - RJET - Stock Quotes