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-   -   Regionals Merging / Consolidating (https://www.airlinepilotforums.com/mergers-acquisitions/92866-regionals-merging-consolidating.html)

atpcliff 08-21-2018 09:26 AM


Originally Posted by SonicFlyer (Post 2612362)
Very insightful post, but one question, devil's advocate....

Why would the majors cannibalize their own WO regionals? Why not reduce the flow to a trickle and hire as much as they can from outside of their WO's in order to hurt their competition's WOs?

If you cut your flow to almost nothing, then ALL your regional pilots will leave for some other mainline. Then you have no regional, and no pilots for your mainline. You won't be able to hire the "other" airline's regional pilots, because they will have a decent, stable flow-thru system, or they will just absorb their own regionals...

4V14T0R 08-21-2018 10:09 AM


Originally Posted by atpcliff (Post 2659177)
If you cut your flow to almost nothing, then ALL your regional pilots will leave for some other mainline. Then you have no regional, and no pilots for your mainline. You won't be able to hire the "other" airline's regional pilots, because they will have a decent, stable flow-thru system, or they will just absorb their own regionals...



You think there’s not a line out the door for each major? If AA dropped flow to a trickle and increased OTS hiring they would do just fine. No one has a true flow except AA WO. So I just don’t see how this is a valid point.

Now I can see if they brought the flow to a trickle how they would have a harder time than ever getting new hires. This is because the flow is just a carrot. A carrot that keep wages low because they assign a quasi-financial benefit to it instead of an actual one.


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fenix1 08-22-2018 11:27 PM

Many thanks for your answers to my questions, especially the first one - I’ve put a lot of effort into figuring out the lay of the land & what’s likely ahead when I need to be handling my business & let the rest fall into place because I handled my business. It’s great to have an ear to the ground and to monitor the industry, but that’ll never replace flat out getting after it - thanks again.


Originally Posted by Funk (Post 2658977)
I think the more accurate description for regionals from a mainline perspective has a number of elements. One is, “moving people cheaper than with mainline pilots and planes.” That’s why you see scope clauses in mainline contracts with pilots’ unions, and a constant push by mainline carriers to get “scope relief.” They need the regionals to scoop up people and deliver them to airports where they can be moved as a larger group on a larger aircraft. Part of that is that customers show a preference for more departures per day, even if it means a smaller aircraft. The trick for a mainline carrier is metering between mainline and regional aircraft to match capacity to traffic from some locations. So in that regard, mainline carriers want to keep regionals cheap, which is a function of both aircraft and labor costs. Teasing flow or interviews is, in my mind, purely a low cost carrot to help stabilize labor at a regional. As you have noted, even a flow has caveats that can allow a mainline carrier to shut off the spigot. Now, to your questions:

1) Unknown, but I don’t think it makes a difference. Biggest factor will be strength of resume so that it gets scored high enough to trigger an interview, and then you need to be fully prepared for the interview. Interview promises are nice, but if you show up with a thin resume and compete against other pilots that got an interview based on a more competitive resume and a lot of work to get it that way, how do you think you are going to compare during that day’s interviews? Much virtual ink has already been spilled on the topic of misleading guidance from companies to pilots before arranged interviews and regarding pilots that showed up poorly prepared. Don’t be that clown is all I can say.

2) If I knew the answer to that detailed and complicated question, I might put in my candidacy to run for the position of the Omnipotent and Almighty.

YMMV


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MilosRex 10-13-2019 01:01 PM

Merging is complicated as a process itself. Part of me is saying it is less likely something like that will happen, but there is the other part that nods to the idea. I mean, we already saw it happen before, right? If it happens there sure wiLl be more consolidation, but the whole process of merging is a complicated thing for pilots to deal with. This is what a merger comes with:
https://dealroom.net/faq/what-is-m-a...u-need-to-know


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