Originally Posted by
Daniel Larusso
Ignoring the labor issues (company and union) with that, it makes little sense from an equipment standpoint. The 50 seat RJ isn't obsolete, but there are far too many deployed right now. In fact many of the routes probably should be back in turboprops from an economic standpoint. Why would a mainline carrier that doesn't presently share the cost of owning those airplanes outside of the length of their FPD deal want to assume the cost of owning/disposing of those birds. While they're better than the 50's, you have to imagine that the same would be true of many of the 70 seaters. If the regionals were merged into mainline eliminating those scope issues, you'd have to think that the majors would trend towards 100 seat E-Jets and the upcoming C-Series so why take on the cost of getting rid of 70's as well? If a major became interested in doing this, I think they'd just put them on mainline with their pilots. They'd probably try and recoup the cost of breaking any FPD agreement through a combination of getting labor to accept lower payrates/worse workrules on the planes and by getting the manufacturers to agree to significantly lower prices for a large mainline order. The threat of displaced feed going to a competitor and hurting you has been dramatically reduced in recent years.
You are correct in your statement. I said it would be really nice if mainlines merged with their regional partners not necessarily feasible. You also need to consider that many CPA contracts require the mainline to share the financial burden of fleet reduction at the regional if the contract is canceled or not renewed. So depending on the CPA language there is already some shared risk with the mainline. Merging would obviously increase this burden substantially, one of the many reasons this situation would never happen. It would still be nice.