Horizon adopting all-CPA business model
08-13-2010, 07:13 PM
#21
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Originally Posted by Avroman
Interesting, Mesaba manegement told their people that Skywest and Pinnacle both put in the same bid (Skywest first, you do the math) and Delta CHOSE to sell to Pinnacle.
08-13-2010, 07:37 PM
#22
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Originally Posted by johnso29
ACA/Independence Air, ExpressJet(both as ExpressJet AND Delta Connection), and now Horizon's branded. Do you need more proof? 
Management has said Horizon is unable to win any bids for other CPA flying because our costs are too high and need to be more in line with market... so let's go all CPA now. Only a matter of time now before we see Republic E190's painted Alaska Express on the side.
08-13-2010, 08:23 PM
#24
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Johnso, Horizon is the "original" branded regional, they've been doing it profitably for 30 years largely because there isn't a ton of fare warfare in their niche of the country. Their business model is "failing" insofar it's making a mere 5% profit during the worst recession in 70 years rather than the 10% mandated by AAG. The real story, IMHO, is that the employee groups are very senior and have rightly refused to give concessions to a profitable company. Switching to the CPA business model is, IMHO, a first step towards farming out ALL of Alaska's <=100 seat flying to the lowest bidder. 
08-13-2010, 09:19 PM
#25
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Originally Posted by JungleBus
Johnso, Horizon is the "original" branded regional, they've been doing it profitably for 30 years largely because there isn't a ton of fare warfare in their niche of the country. Their business model is "failing" insofar it's making a mere 5% profit during the worst recession in 70 years rather than the 10% mandated by AAG. The real story, IMHO, is that the employee groups are very senior and have rightly refused to give concessions to a profitable company. Switching to the CPA business model is, IMHO, a first step towards farming out ALL of Alaska's <=100 seat flying to the lowest bidder.
I would love to disagree but I believe that you have hit the nail on the head.
08-13-2010, 09:39 PM
#26
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Originally Posted by JungleBus
Johnso, Horizon is the "original" branded regional, they've been doing it profitably for 30 years largely because there isn't a ton of fare warfare in their niche of the country. Their business model is "failing" insofar it's making a mere 5% profit during the worst recession in 70 years rather than the 10% mandated by AAG. The real story, IMHO, is that the employee groups are very senior and have rightly refused to give concessions to a profitable company. Switching to the CPA business model is, IMHO, a first step towards farming out ALL of Alaska's <=100 seat flying to the lowest bidder.
08-14-2010, 06:36 AM
#27
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Originally Posted by The Dude Abides
I don't have a source, so this is useless, but I was told the branded flying for QX is more profitable than what is performed under CPA for Alaska. Just because branded failed at other regionals means nothing. Horizon started as branded, opposite of your examples. If the branded flying was so unprofitable I don't think they would have waited so long to change it.
Management has said Horizon is unable to win any bids for other CPA flying because our costs are too high and need to be more in line with market... so let's go all CPA now. Only a matter of time now before we see Republic E190's painted Alaska Express on the side.
Management has said Horizon is unable to win any bids for other CPA flying because our costs are too high and need to be more in line with market... so let's go all CPA now. Only a matter of time now before we see Republic E190's painted Alaska Express on the side.
Originally Posted by JungleBus
Johnso, Horizon is the "original" branded regional, they've been doing it profitably for 30 years largely because there isn't a ton of fare warfare in their niche of the country. Their business model is "failing" insofar it's making a mere 5% profit during the worst recession in 70 years rather than the 10% mandated by AAG. The real story, IMHO, is that the employee groups are very senior and have rightly refused to give concessions to a profitable company. Switching to the CPA business model is, IMHO, a first step towards farming out ALL of Alaska's <=100 seat flying to the lowest bidder.
Originally Posted by ArcticDog
Exactly...why else would they switch to the CPA model. The money has always gone to the same place anyways. It's the old shell game...only this time they may and try to add another shell.
Thanks for the schooling guys. It's a shame when a pilot group stands its ground and management just finds another way around it.
08-14-2010, 08:01 AM
#28
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Joined APC: Dec 2007
Posts: 691
Originally Posted by JungleBus
Johnso, Horizon is the "original" branded regional, they've been doing it profitably for 30 years largely because there isn't a ton of fare warfare in their niche of the country. Their business model is "failing" insofar it's making a mere 5% profit during the worst recession in 70 years rather than the 10% mandated by AAG. The real story, IMHO, is that the employee groups are very senior and have rightly refused to give concessions to a profitable company. Switching to the CPA business model is, IMHO, a first step towards farming out ALL of Alaska's <=100 seat flying to the lowest bidder.
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