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

garrett490 01-20-2016 09:22 AM

Regionals Merging / Consolidating
 
When do you guys think the regionals will begin to buy each other out/merge/consolidate in some form? To me it seems obvious that the regional airlines are going to have to consolidate in order to have a consistent supply of pilots. Why pay for them one by one (sign on bonuses) when you could buy a few thousand at a time (with financing I might add) by merging with or buying out another regional? Once they merge they can utilize us however they see fit and furlough the excess or take on as much flying as American/Delta/United can through at them.

Geardownflaps30 01-20-2016 09:40 AM

Quote:

Originally Posted by garrett490 (Post 2051364)
When do you guys think the regionals will begin to buy each other out/merge/consolidate in some form? To me it seems obvious that the regional airlines are going to have to consolidate in order to have a consistent supply of pilots. Why pay for them one by one (sign on bonuses) when you could buy a few thousand at a time (with financing I might add) by merging with or buying out another regional? Once they merge they can utilize us however they see fit and furlough the excess or take on as much flying as American/Delta/United can through at them.

There will be no more regional mergers. The "Pinacolaba" fiasco and the mess that Skywest/ASA/Expressjet are have shown (along with the shut down of Comair) that is is FAR more cost effective to close shop, transfer aircraft and rehire furloughees to the bottom of the list.

You've already seen it the past year or so with transfers of 145's and 700's from one carrier to the next, both amongst privately held and wholly owned subsidiaries.

There won't be mergers. Just shrinking and shut downs. Mergers are a pipe dream of pilots.

FlameNSky 01-20-2016 09:42 AM

I think we have already seen this happen with the whole Pinnacle/Mesaba/Colgan --> Endeavor merger. As is usually the case, Delta was thinking ahead of the game.

I would think that we will see more consolidation as the current "regional" pilot supply situation plays itself out. I hope it doesn't but I fear that we are likely to see more TSA/Go Jet and SkyWest/ExpressJet kind of scenarios play out.

iFlyRC 01-20-2016 09:52 AM

Why merge and have to deal with seniority lists, and integration? Conflicting contracts? I agree, shut the doors, and sell out.

Nevets 01-20-2016 10:19 AM

Regionals Merging / Consolidating
 
Quote:

Originally Posted by Geardownflaps30 (Post 2051379)
Mergers are a pipe dream of pilots.


Many pilots are vehemently against any type of merger involving them. Even if it means better future prospects. Pilots fear the seniority list integration and would rather deal with the devil they know.

rickair7777 01-20-2016 10:25 AM

Quote:

Originally Posted by Geardownflaps30 (Post 2051379)
There will be no more regional mergers. The "Pinacolaba" fiasco and the mess that Skywest/ASA/Expressjet are have shown (along with the shut down of Comair) that is is FAR more cost effective to close shop, transfer aircraft and rehire furloughees to the bottom of the list.

You've already seen it the past year or so with transfers of 145's and 700's from one carrier to the next, both amongst privately held and wholly owned subsidiaries.

There won't be mergers. Just shrinking and shut downs. Mergers are a pipe dream of pilots.

This is the facts, Jack.

Possible exception if somebody needed the pilots more than the planes, and badly enough to buy an intact seniority list.

eaglefly 01-20-2016 10:42 AM

Quote:

Originally Posted by Nevets (Post 2051405)
Many pilots are vehemently against any type of merger involving them. Even if it means better future prospects. Pilots fear the seniority list integration and would rather deal with the devil they know.

Unfortunately, no regional pilot group will be able to thwart a merger involving their carrier. They will become bystanders to their future, the only issue being arguing an SLI in arbitration. Contractual items can (and likely will) be obtained via agreement in certain situations, the fate of the AA wholly-owneds being one of them in such a situation with a consolidation among some or all of them or with an outside carrier.

eaglefly 01-20-2016 10:46 AM

Quote:

Originally Posted by Geardownflaps30 (Post 2051379)
There will be no more regional mergers. The "Pinacolaba" fiasco and the mess that Skywest/ASA/Expressjet are have shown (along with the shut down of Comair) that is is FAR more cost effective to close shop, transfer aircraft and rehire furloughees to the bottom of the list.

You've already seen it the past year or so with transfers of 145's and 700's from one carrier to the next, both amongst privately held and wholly owned subsidiaries.

There won't be mergers. Just shrinking and shut downs. Mergers are a pipe dream of pilots.

A few very well may become defunct, but uninterrupted market share is crucial and thus more "seamless" transitions are more likely for most. As long as the execs and shareholders are taken care of, pilots can be batted around like a cat playing with a toy, especially regional pilots. Regional "merger-mania" similar to the past major airline sector has likely not yet occurred.

One thing is certain and that is ALPA national will bend over backward to facilitate whatever consolidation occurs among the regional pilots they represent.

profit 01-20-2016 10:53 AM

Quote:

Originally Posted by FlameNSky (Post 2051383)
I think we have already seen this happen with the whole Pinnacle/Mesaba/Colgan --> Endeavor merger. As is usually the case, Delta was thinking ahead of the game.

I would think that we will see more consolidation as the current "regional" pilot supply situation plays itself out. I hope it doesn't but I fear that we are likely to see more TSA/Go Jet and SkyWest/ExpressJet kind of scenarios play out.

Delta will eliminate its Republic feed via lawsuit.

CBreezy 01-20-2016 12:14 PM

I wouldn't be surprised to see a TSA/GoJet/Compass before the dust settles.


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