Go Back   Airline Pilot Central Forums - Find your next job as a Pilot > >

Mergers and Acquisitions Facts, rumors, and conjecture

 

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


Reply
 
Thread Tools Search this Thread Display Modes
Old 01-20-2016, 08:22 AM   #1
On Reserve
Thread Starter
 
Joined APC: Dec 2012
Posts: 21
Default 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.
garrett490 is offline   Reply With Quote
Old 01-20-2016, 08:40 AM   #2
Gets Weekends Off
 
Joined APC: Jun 2011
Posts: 941
Default

Quote:
Originally Posted by garrett490 View Post
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.
Geardownflaps30 is offline   Reply With Quote
Old 01-20-2016, 08:42 AM   #3
Gets Weekends Off
 
FlameNSky's Avatar
 
Joined APC: Aug 2010
Posts: 544
Default

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.
FlameNSky is offline   Reply With Quote
Old 01-20-2016, 08:52 AM   #4
Gets Weekends Off
 
iFlyRC's Avatar
 
Joined APC: Jan 2015
Posts: 1,198
Default

Why merge and have to deal with seniority lists, and integration? Conflicting contracts? I agree, shut the doors, and sell out.
iFlyRC is offline   Reply With Quote
Old 01-20-2016, 09:19 AM   #5
Banned
 
Joined APC: Dec 2007
Position: EMB 145 CPT
Posts: 2,934
Default Regionals Merging / Consolidating

Quote:
Originally Posted by Geardownflaps30 View Post
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.
Nevets is offline   Reply With Quote
Old 01-20-2016, 09:25 AM   #6
Prime Minister
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: RJ
Posts: 18,682
Default

Quote:
Originally Posted by Geardownflaps30 View Post
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.
rickair7777 is offline   Reply With Quote
Old 01-20-2016, 09:42 AM   #7
Banned
 
Joined APC: Jun 2008
Posts: 8,350
Default

Quote:
Originally Posted by Nevets View Post
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 is offline   Reply With Quote
Old 01-20-2016, 09:46 AM   #8
Banned
 
Joined APC: Jun 2008
Posts: 8,350
Default

Quote:
Originally Posted by Geardownflaps30 View Post
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.
eaglefly is offline   Reply With Quote
Old 01-20-2016, 09:53 AM   #9
sharing
 
profit's Avatar
 
Joined APC: Dec 2012
Position: ERB
Posts: 72
Default

Quote:
Originally Posted by FlameNSky View Post
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.
profit is offline   Reply With Quote
Old 01-20-2016, 11:14 AM   #10
Gets Weekends Off
 
Joined APC: Jul 2013
Posts: 3,453
Default

I wouldn't be surprised to see a TSA/GoJet/Compass before the dust settles.
CBreezy is online now   Reply With Quote
 
 
 

 
Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Related Topics
Thread Thread Starter Forum Replies Last Post
Applying at Regionals, Issue or Not? skyshadows74 Regional 6 09-28-2015 07:38 AM
Going to the regionals at ATP minimums? Skyhawk92 Career Questions 6 11-23-2014 06:56 AM
Airlines Merging soldierboy Regional 23 04-16-2008 12:15 PM
Effect on Regionals, DAL/NWA Merger Marty MCfly Regional 72 04-16-2008 07:44 AM
"Fun"@ Regionals, then "settle down" supercell86 Hiring News 14 01-09-2006 01:07 PM


All times are GMT -8. The time now is 07:35 AM.


vBulletin® v3.9.3.0, Copyright ©2000-2017, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
Copyright ©2000 - 2012 Internet Brands, Inc.