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Old 04-08-2011, 05:44 AM   #1  
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Default Re: RAH

After reading these silly forums for years, it is safe to say that almost everyone agrees that the outsourcing of "regional" flying has been single most detrimental and destructive action towards the quality of our careers. Most wish that we could go back in time and NOT allow outsourcing. If it's an airplane with a specific brand/paint job, it should be flown by flight crews under one seniority list. No matter the size, number of seats, or distance flown. This provides the most protection to the unionized labor at the company.

Now look at RAH. A low cost major airline has become one with a regional airline. A major airline and regional airline will become one seniority list, represented by the same union, and protected by the same contract. This is a good thing.

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The down side of that is the pilot against pilot, union against union fighting will take years to smooth out. I doubt we will all see eye to eye before the company fails.

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I do think this company will fail. There is little hope that this company will survive more than a few years.

Every day that I go to work, I am amazed that any of us actually work here. It is an incredibly negative work environment, and it is due to our companies inability to run itself effectively and efficiently.

I could go on for pages about how poorly this place is managed, but everyone has read it before. It is turning into a blend of mesa and trans states holdings. From the crews on the line, mx, or the folks on the other end of the phone.....everyone is unhappy and looking to get out. Turnover in every department will be huge, moral will only get worse, and the company will hemorrhage money due to ineffective upper/middle management, training costs, and the mistakes of the under qualified ill and ill trained.

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The next few years should be interesting.
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Old 04-08-2011, 06:58 AM   #2  
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Mod Edit: wrong graph deleted


Looks like their management is doing ok to me. Much to my chagrin...

Last edited by TonyWilliams; 04-08-2011 at 08:48 AM.
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Old 04-08-2011, 07:13 AM   #3  
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Looks like their management is doing ok to me. Much to my chagrin...
I think you are looking at the wrong stock. Try RJET, the chart is exactly opposite to the chart you posted.
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Old 04-08-2011, 07:21 AM   #4  
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Mod Edit: wrong graph deleted

Looks like their management is doing ok to me. Much to my chagrin...
Yeah but most of that graph is cushy guaranteed profits with free fuel. SKYW is flush with cash and their profitibility graph is probably similar. All either means is that they have experienced pant splitting growth in the guaranteed profit free fuel market segment with ever larger airplanes. The question will be is that sustainable. Indy Air tanked pretty quick once truly on their own and even dirt cheap Mesa had trouble in the guaranteed profit free fuel sector.

IMO the only thing that will keep the "Indy Air Group" in question in business for a sustainable timeline is the continued increase of outsourcing quantity and gauge and some kind of domestic code sharing windfall loophole to continue to subsidize their "independant" operation.

Last edited by TonyWilliams; 04-08-2011 at 08:47 AM.
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Old 04-08-2011, 07:36 AM   #5  
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Really, I just need this place to survive for the next few years. By then, EVERYONE will be hiring.

Oh, and here's the stock. Once $24, today $5.88
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Old 04-08-2011, 07:37 AM   #6  
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Really, I just need this place to survive for the next few years. By then, EVERYONE will be hiring.

+1 to that
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Old 04-08-2011, 07:38 AM   #7  
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Yeah but most of that graph is cushy guaranteed profits with free fuel. SKYW is flush with cash and their profitibility graph is probably similar. All either means is that they have experienced pant splitting growth in the guaranteed profit free fuel market segment with ever larger airplanes. The question will be is that sustainable. Indy Air tanked pretty quick once truly on their own and even dirt cheap Mesa had trouble in the guaranteed profit free fuel sector.

IMO the only thing that will keep the "Indy Air Group" in question in business for a sustainable timeline is the continued increase of outsourcing quantity and gauge and some kind of domestic code sharing windfall loophole to continue to subsidize their "independant" operation.
I and some others are afraid that is exactly what he is banking on. I think his strategy is to continue to siphon more and more flying from legacy carriers by undercutting the competition and thus gaining more guaranteed FFD contracts until his independent operation can obtain a feed contract to one of the big alliances. Imagine if Skyteam, Oneworld, or Star signed a contract with Republic holdings for feed and code sharing with their foreign carriers, thus bypassing Delta, American, and UCAL. That would be Armageddon for us.

What if he snags contracts with Emirates et al? Every pilot that has aspirations of every flying for a major and making more than regional wages has a stake in this. Republic must be quashed. This flying across certificates to bypass scope clauses must be quashed.
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Old 04-08-2011, 07:39 AM   #8  
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Looks like their management is doing ok to me. Much to my chagrin...
I think this is the chart you meant. Although many airline stocks have tanked, I'd be a little annoyed as a stockholder if my stock had gone from 20 to 6 in two years.
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Old 04-08-2011, 07:43 AM   #9  
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Really, I just need this place to survive for the next few years. By then, EVERYONE will be hiring.
Not necessarily. Thanks to you, the majors very well could continue to downsize outsourcing flying 100 seat jets to regionals. Better plan RAH being your career destination. That way you won't be disappointed, especially since your willingness to fly for peanuts reinforces management's perception that pilots are cheap.
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Old 04-08-2011, 07:43 AM   #10  
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I think this is the chart you meant. Although many airline stocks have tanked, I'd be a little annoyed as a stockholder if my stock had gone from 20 to 6 in two years.
Yes, I stand corrected. I searched using the wrong code. But if you look at the trend line it was still upward until the middle of 08 when the entire market took a dump. Maybe some technical analysis guy could weigh in.?.
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