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Old 02-26-2010 | 04:35 AM
  #29545  
slowplay
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Originally Posted by scambo1

I disagree for (at least) three reasons:

1. Fee for departure / guaranteed profit. It would be cheaper to fly them at mainline.
It's not cheaper to fly them at mainline. For guidance look at the birth of Compass, a non-fee for departure airline.

Originally Posted by scambo1
2. Economies of scale - dispatch, mx, gate agents, res, etc. The bigger an enterprise, the (relativelely) less expensive the cost per sample size (widget).
This also isn't necessarily true. Economies of scale are only a small part of the larger economic equation. There have been some large regionals with better economies of scale fall on much harder times than upstarts.

Originally Posted by scambo1
3. We are already doing much of the service work for them.
Only in certain hubs. Many outstations they're doing the underwing and other services for us through Regional Elite Staffing services.

Originally Posted by scambo1
Bring 'em to mainline, the cost is not that great. It is the new entry level, but at least we are all rowing in the same direction.
You're correct, it would be a new entry level. There's a lot of change associated with that when you look at the real world economic environment.

Originally Posted by scambo1
Two reasons Comair is getting spanked so hard lately:

1. They were bad and there is no "military school" for DCIs.

2. (subset) Delta doesnt have full control of all of the other DCI's. Comair is the "flex" in the whole DCI system.
While I won't dispute that CMR's PID attempt, pilot strike, and JC Lawson's furlough letter set labor relations back a whole bunch, management got "even" in bankruptcy. Also, Delta has the exact same level of control over Compass and Mesaba, and they aren't currently shrinking as much. You might look at costs as a driving factor. Right now the junior CMR Captain has at least 9 years, while the senior Compass Captain has 3. That's the same across most of the work groups, and gives Comair a "legacy" cost structure among the regionals.

One note, Mesaba has a bunch of contractual "snap-backs" coming late this year. Note that they've decided to shrink the Saab fleet and DCI is abandoning Mesaba service to some smaller airports as their pay/rules are restored to pre-bankruptcy levels. I'm not suggesting that pilot wages alone are responsible for that reduction, but it appears to me that they contributed to that decision.

As an aside, the relationship between the ALPA represented DCI's and mainline has improved significantly over the last 18 months. I think that's good for all parties.

Last edited by slowplay; 02-26-2010 at 05:00 AM. Reason: added the aside...