Thread: Bankruptcy
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Old 11-03-2021 | 08:28 PM
  #714  
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Excargodog
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Originally Posted by FlyGuy2021
On an internal call at United a few days ago, they were panicking because they think that Delta is buying SkyWest, and will cut the regional feed that they provide to UA. That is a real worry right now.

If you think that there is extra regional feed just laying around, you are clearly out of the loop on what is really happening.

The legacy carriers built this model where 45-50% of passengers are moved on outsourced flights with cheap contractors. Now, that is coming back to bite them in the butt. The proactive legacy airlines are attacking the slower ones by going after their regional feed. Once UA is done, the AA WO will not have enough senior staff around to keep the training department alive. At the same time, one of the legacy carriers taking over SkyWest will destroy the others.

So, no, your assessment is completely incorrect.
What part of
Agree totally, but just pointing out that there are other sources for that. It does not require a wholly owned. Not if subcontracting to other regionals remains viable. They can get feed from many other regionals and likely WILL if that’s cheaper than doing it in house
Did you not get? Clearly if all subcontracting regionals go away, then - duh - subcontracting to other regionals ceases to be viable. But until or unless that happens, it’s still a viable pathway. In fact, Alaska is subcontracting to Skywest right now in competition to their own regional.
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