Originally Posted by
golfandflows
The coming recession/depression is about to buy the regionals a few more years.
Inflation
Oil price
Russia
FED interest rate policy mismanagement
The hit on American’s discretionary income is about to bring all of the fun to a screeching halt.
How will those things buy time for inefficient regional fleets? Wouldn’t those issues hit smaller markets equally hard, lower demand, and make the decision to park planes already facing retirement that much easier? If a major recession and high fuel prices are on the way, wouldn’t the legacy carriers use their near term deliveries to focus on improving efficiency by replacing older jets, drop low yielding markets, and then use future deliveries for growth when demand returns? Economic forces will definitely affect hiring at all levels, but expensive fuel and lowered passenger demand due to less discretionary income won’t do the regionals any favors. It won’t be good for anyone.