The future of the industry
07-27-2013 | 11:46 AM
#82
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Gets Weekends Off
Joined: Sep 2012
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From: Babysitter
This would be a great thing...if it would happen....
07-27-2013 | 12:02 PM
#83
Gets Weekends Off
Joined: Oct 2006
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Believe it when I see it.
As an industry, airlines will start to kick and scream when FTDT limits start to bite. Politicians will cave by granting an escape clause.
Orders for new regional aircraft don't portend any kind of collapse.
As an industry, airlines will start to kick and scream when FTDT limits start to bite. Politicians will cave by granting an escape clause.
Orders for new regional aircraft don't portend any kind of collapse.
07-27-2013 | 12:07 PM
#84
Da Hudge
Joined: Oct 2006
Posts: 17,473
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From: Poodle Whisperer
How I see, If regional airlines want retain their current fleet size, and the majors retain the current route structure, the majors will have to increase their regional partners departure fee. The regional airlines will inevitable have to increase their salaries to attract qualified pilots (whether resident/citizens or foreign nationals), OR...Majors reduce regional flying and obtain bigger aircraft while reducing flight frequencies.
07-27-2013 | 12:10 PM
#85
Line Holder
Joined: Mar 2011
Posts: 38
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From: Bus Driver
Living outside of U.S. made me realized just how much we live in a bubble not realizing what's happening outside...
Due to the signifigance shortfall of new pilot entering the career field, the regionals, NOT the majors, will have a problem with hiring. Does that mean the majors will reduce regional capacity? Maybe, BUT maybe not!
Considering the U.S. is not the only country with pilots who may meet the FAA new requirements, other countries have qualified pilots who are also seeking employment globally. Under the H1B visa program, if an U.S. employer is unable to find and hire a professional employee for an unfilled professional position, said company may temporarily hire a foreign national from outside the U.S. under the H1B visa program.
I remember when I use to fly for a 135 freight company in early yr 2000, 30% of its pilots were foreign nationals working under the H1B visa program because the company was unable to attract and hire legal resident/citizens to fill pilot positions due to the hiring wave that was occurring at the regional/major airlines.
Some scenarios may happen if the regional airlines decides to exploit the H1B visa program.
1. If they are able to find and hire qualified foreign national under the H1B visa program, then regional salaries will remain as they are. Majors retain routes and infrastructure. Everything remains status quo.
2. If regional airlines can not attract foreign national pilots, Regional airlines lose flying and majors lose routes to their competition.
So whats the business solution...
How I see, If regional airlines want retain their current fleet size, and the majors retain the current route structure, the majors will have to increase their regional partners departure fee. The regional airlines will inevitable have to increase their salaries to attract qualified pilots (whether resident/citizens or foreign nationals), OR...Majors reduce regional flying and obtain bigger aircraft while reducing flight frequencies.
Now I know there will be some that will say the regionals will not exploit the H1B program, but it was also be said the majors would take back flying from the regional partners. Currently facts do not support this trend. In fact, its the opposite, Approx 50% of Delta domestic routes are flown by regional airlines compared to 30% in 2005 and United just announced increase regional flying.
Something to ponder...
Due to the signifigance shortfall of new pilot entering the career field, the regionals, NOT the majors, will have a problem with hiring. Does that mean the majors will reduce regional capacity? Maybe, BUT maybe not!
Considering the U.S. is not the only country with pilots who may meet the FAA new requirements, other countries have qualified pilots who are also seeking employment globally. Under the H1B visa program, if an U.S. employer is unable to find and hire a professional employee for an unfilled professional position, said company may temporarily hire a foreign national from outside the U.S. under the H1B visa program.
I remember when I use to fly for a 135 freight company in early yr 2000, 30% of its pilots were foreign nationals working under the H1B visa program because the company was unable to attract and hire legal resident/citizens to fill pilot positions due to the hiring wave that was occurring at the regional/major airlines.
Some scenarios may happen if the regional airlines decides to exploit the H1B visa program.
1. If they are able to find and hire qualified foreign national under the H1B visa program, then regional salaries will remain as they are. Majors retain routes and infrastructure. Everything remains status quo.
2. If regional airlines can not attract foreign national pilots, Regional airlines lose flying and majors lose routes to their competition.
So whats the business solution...
How I see, If regional airlines want retain their current fleet size, and the majors retain the current route structure, the majors will have to increase their regional partners departure fee. The regional airlines will inevitable have to increase their salaries to attract qualified pilots (whether resident/citizens or foreign nationals), OR...Majors reduce regional flying and obtain bigger aircraft while reducing flight frequencies.
Now I know there will be some that will say the regionals will not exploit the H1B program, but it was also be said the majors would take back flying from the regional partners. Currently facts do not support this trend. In fact, its the opposite, Approx 50% of Delta domestic routes are flown by regional airlines compared to 30% in 2005 and United just announced increase regional flying.
Something to ponder...
07-27-2013 | 12:12 PM
#86
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Joined: Oct 2006
Posts: 13,088
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From: B757/767
Now I know there will be some that will say the regionals will not exploit the H1B program, but it was also be said the majors would take back flying from the regional partners. Currently facts do not support this trend. In fact, its the opposite, Approx 50% of Delta domestic routes are flown by regional airlines compared to 30% in 2005 and United just announced increase regional flying.
Something to ponder...
Something to ponder...
No longer true. And the regional flying for Delta will continue to decrease as the B717s come online, & the 50 sweaters are further reduced.
07-27-2013 | 12:19 PM
#87
Gets Weekends Off
Joined: Feb 2008
Posts: 111
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Regional salaries are abysmal to U.S. wage standards for professionals, but to other people in less fortunate countries, its a step up in their living and wage standards. Especially if jobs are not plentiful in their country! Plus its a lottery ticket to live in the U.S. I've often wonder why people would want to relocate to the middle east. Yes the money in the middle east is good for professionals, but what about the labor workers making 300-500 USD/mo in conditions that westerners would consider unhealthy work standards. And living conditions definitely is not for the faint of heart either! OSHA would have a field day here!
Well...the reason they relocate, it is a step up in their living standards and although 300-500USD is well below poverty standard to us Americans, its actually enough money to pay what little they here and send money back home to their families. Of course they find extra work washing cars, babysitting, private taxi, etc to bring in extra cash. Seems awefully familiar...hmmm (....Mexicans?!?)
So you see, its not a far stretch to the imagination that it may come to fruition.
07-27-2013 | 12:30 PM
#88
Gets Weekends Off
Joined: Feb 2008
Posts: 111
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50 seat flying is a thing of the far distant past. I'm sure you must be aware of that fact by now with all the CRJ 700/900 & EMB170/175 Delta has flying for them...lol. Yes..Delta has B717, but if DL can't make the profit margin they want with B717 flying certain routes, regional airlines would happily slug it out with each to do the flying. Also, frequency will be limited considering they don't operate their aircraft like SW. An airplane on the ground is airplane that is not makin money.
07-27-2013 | 12:38 PM
#89
Gets Weekends Off
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Secondly, the only pilots leaving the regional airlines are....FO's & junior CA's who are leaving for greener pastures. Majority of the senior regional CA's are financially force to stay because they would be financially ruined if they moved on.
07-27-2013 | 12:40 PM
#90
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Joined: Oct 2006
Posts: 13,088
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From: B757/767
50 seat flying is a thing of the far distant past. I'm sure you must be aware of that fact by now with all the CRJ 700/900 & EMB170/175 Delta has flying for them...lol. Yes..Delta has B717, but if DL can't make the profit margin they want with B717 flying certain routes, regional airlines would happily slug it out with each to do the flying. Also, frequency will be limited considering they don't operate their aircraft like SW. An airplane on the ground is airplane that is not makin money.
I'm not sure why you think SW operates the B717 any different then Delta will. I jump seated on a AirTran B717 just a few months ago, & it wasn't a quick turn at all.
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