Will a carrier folding stabilize things?
#41
I think the 50 seaters going away will stabilize everything.
Unfortunately it could drive down demand for pilots and lower the entry wages. Even during a shortage if there are only a few points of entry then they will collude on wages and not compete.
50 at Endeavor
150 at Skywest
50 at Envoy
50 at Wisconsin
60 at Piedmont
60 at CommutAir
Looks like 50 seaters will cost over 5,000 jobs, that will go away and be absorbed though a softer Covid demand reset.
Unfortunately it could drive down demand for pilots and lower the entry wages. Even during a shortage if there are only a few points of entry then they will collude on wages and not compete.
50 at Endeavor
150 at Skywest
50 at Envoy
50 at Wisconsin
60 at Piedmont
60 at CommutAir
Looks like 50 seaters will cost over 5,000 jobs, that will go away and be absorbed though a softer Covid demand reset.
It has nothing to do with a softer Covid demand reset (not even certain I understand what those words mean).
It is forecast 9,000 regional pilots (out of 20,000 regional pilots total) will be hired by the majors in 2022. A continued strain of hiring will take place, maybe to not quite that extent, year after year for the rest of the decade. They will not be able to find and train sufficient pilots to fill all of those slots. Something will have to give. It will be most of the 50 seaters. (EAS and a few other places will continue to fly a handful of 50 seaters.)
#43
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Joined APC: Jul 2021
Posts: 349
We have two things colliding in the same airspace. Reduction of 50 seaters and a major shortage of regional pilots.
It has nothing to do with a softer Covid demand reset (not even certain I understand what those words mean).
It is forecast 9,000 regional pilots (out of 20,000 regional pilots total) will be hired by the majors in 2022. A continued strain of hiring will take place, maybe to not quite that extent, year after year for the rest of the decade. They will not be able to find and train sufficient pilots to fill all of those slots. Something will have to give. It will be most of the 50 seaters. (EAS and a few other places will continue to fly a handful of 50 seaters.)
It has nothing to do with a softer Covid demand reset (not even certain I understand what those words mean).
It is forecast 9,000 regional pilots (out of 20,000 regional pilots total) will be hired by the majors in 2022. A continued strain of hiring will take place, maybe to not quite that extent, year after year for the rest of the decade. They will not be able to find and train sufficient pilots to fill all of those slots. Something will have to give. It will be most of the 50 seaters. (EAS and a few other places will continue to fly a handful of 50 seaters.)
The demand reset referred to an idea that TSA screenings may achieve pre Covid numbers and all lost departures are never restored.
They simply upguage current frequency to meet demand in lieu of restoring lost RJ frequency.
Difficult to know if RJ departure frequency is truly more profitable, or a carry over from pre mergers when it was the cheapest way to scale the network, and offer more product options with cheap overhead.
#44
I was just referring that my own hometown and many airports don’t have the exact service measured by RJ departures that existed Precovid.
The demand reset referred to an idea that TSA screenings may achieve pre Covid numbers and all lost departures are never restored.
They simply upguage current frequency to meet demand in lieu of restoring lost RJ frequency. That relives pressure, as much or more than a carrier folding.
The demand reset referred to an idea that TSA screenings may achieve pre Covid numbers and all lost departures are never restored.
They simply upguage current frequency to meet demand in lieu of restoring lost RJ frequency. That relives pressure, as much or more than a carrier folding.
Some smaller cities are going to lose air service or at least find it dramatically more expensive. That’s just reality.
#45
More frequency ALWAYS means more customers... in my rural hometown we have a very few local flights, or can drive to two other airports (1-2 hour drive). On the days where they add a flight or two, I'll fly out of the local small airport. But if it's 8-12 hours off my desired schedule, I'll drive to the hub (they even have a bus).
There's obviously a point of diminishing economic returns on added frequency. There is a sweet spot where more frequency (enabled by RJ's in small markets) gives a competitive advantage (convenience) despite higher CASM of smaller planes.
There are variables...
Gucci vacation destinations support schedules which would be uneconomical for Podunk Falls.
The cost to staff an outstation... typically need three flights on most days, although that can be mitigated if one company handles multiple brands on contract.
#46
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Posts: 2,012
On the optimistic side…
I think the network carriers have gotten MUCH better at product differentiation and that’s going to support better service.
the 200/145 is peak bad-old-days. Same crappy product for everyone. Poor pricing for the value conscious, poor service for the business traveler. Nobody’s happy.
But they’ve got a 4 class model pretty well
figu out with the 76 seat and up aircraft. Sell enough paid first class and economy plus, offer basic economy too and maybe some of these smaller Class C markets can support a mix of 737 and 175
(and yes the places that had two 50-seat flights/day will lose service)
I think the network carriers have gotten MUCH better at product differentiation and that’s going to support better service.
the 200/145 is peak bad-old-days. Same crappy product for everyone. Poor pricing for the value conscious, poor service for the business traveler. Nobody’s happy.
But they’ve got a 4 class model pretty well
figu out with the 76 seat and up aircraft. Sell enough paid first class and economy plus, offer basic economy too and maybe some of these smaller Class C markets can support a mix of 737 and 175
(and yes the places that had two 50-seat flights/day will lose service)
#47
Likely a natural consequence of a pilot shortage, but those 50's are close to worn out anyway.
We may see a return of the milk-run in some places... do a loop circuit including several small destinations. I did that only a tiny handful of times in my career.
We may see a return of the milk-run in some places... do a loop circuit including several small destinations. I did that only a tiny handful of times in my career.
#48
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Joined APC: Apr 2020
Posts: 2,189
Plenty of the markets can see a trim without a major disruption. Say LGA-ROC 5x on a 76 seat jet, 380 seats. Can adjust it to 4x 220 (110 seats, or some combination of RJ and 220), 440 seats. Keeps capacity and losing one frequency can be managed by tweaking the times (morning, early afternoon, evening, night).
#49
2. Some places will be so inconvenient that a lot of passengers will discretionarily drive to a larger airport, stay home, etc.
3. Milk runs. Reminds me of Ozark, from St. Louis to Minneapolis. Had 4 intermediate stops. DC-9. Before deregulation. Pick up 2 here and 3 there.
#50
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