Airline Pilot Central Forums - Why It Is What It Is

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Quote:

Originally Posted by 757upspilot (Post 641707)

Could they turn a profit if they where a stand alone entity? Do they compensate well or do they compensate poorly? do the airlines that pay for there services pay based on what each flight could generate or do they pay cost plus?

I just said there is a regional that somehow manages to make piles of money when others are in the crapper.

But to try to answer your questions -
I doubt it. Slightly below average but hair gel is cheap. Cost Plus.

Quote:

Originally Posted by AirWillie (Post 641669)

Well yes. You don't have 20 Fedex and UPS carriers as well as about 20 Fedex and UPS Connection carriers like the airlines do.

You should look at Ameriflight and the FEDEX and UPS small aircraft subcontractors, it is an issue for freight also. It would appear that freight just doesn't over pay for the feed or accepts the loss on the short segment or turns to ground movement.
The cost of building the distribution network is almost cost prohibitive for new entries.

Quote:

Originally Posted by Boomer (Post 641715)

So it would appear that if they didn't have another airlines management making poor business decisions they wouldn't be profitable and make piles of money.
Below average for a regional is pretty sad and one of the points of this discussion is compensation .

Quote:

Originally Posted by AirWillie (Post 641594)

The toilet has already been flushed. For what you are saying should happen, it would mean thousands of job losses as you consolidate and raise fares. Even if it were to happen, it would mean a setback of about a decade for pilots. We are just going to have to come to terms that free market economy and the airlines just do not mix unless there is heavy gov regulation. You can't make profits by selling a 2 dollar product for 5 cents.

I have to respectfully disagree with that statement. Airlines can and do exist in the free market economy successfully without government regulation. The free market simply dictates who survives and how many carriers exist.

The industry of the present is just too big for the market it is trying to serve - i.e., overcapacity. The sad but harsh truth is that the industry must shrink in order to be profitable. It's a choice of many carriers operating just barely above cost, or fewer carriers that are strong and profitable.

I don't believe government regulation would make the matter any better. It would exist to subsidize carriers at the expense of the taxpayer. And with government intervention comes the inevitable game of political favorites. If the government is footing the bill, they are going to determine the who, what, where, and how often pieces of the pie. It is entirely plausible that many carriers would cease operating due to the fact the government may choose to subsidize certain carriers only.