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Old 02-26-2010 | 09:28 PM
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Default The Future of Major Airlines

Regional Pilots

Mainline Flight Attendants.

You heard it here first. It will happen. So what's the time line?

(ok... maybe you didn't here it first, but whatever. The internets really cares...)

And to clarify, what I mean is that the major brands exist as brands only a la Frontier and Midwest. So that the pilots are only drivers of a paint scheme and a customer experience. The customer experience is up to those who contact the customer and the operation is up to the driver and the dispatcher and the mechanic.

Thoughts?
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Old 02-27-2010 | 05:00 AM
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Originally Posted by AMND1
Regional Pilots

Mainline Flight Attendants.

You heard it here first. It will happen. So what's the time line?

(ok... maybe you didn't here it first, but whatever. The internets really cares...)

And to clarify, what I mean is that the major brands exist as brands only a la Frontier and Midwest. So that the pilots are only drivers of a paint scheme and a customer experience. The customer experience is up to those who contact the customer and the operation is up to the driver and the dispatcher and the mechanic.

Thoughts?
Not sure what your point is. It has always been as you describe.
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Old 02-27-2010 | 05:24 AM
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Who cares?
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Old 02-27-2010 | 06:49 AM
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Cool

Uh........what?
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Old 02-27-2010 | 07:58 AM
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Here is my theory:

The airline industry as we know (deregulated) is very young, just 32 years old. There are quite a few airlines out there, and lots of seats to be sold. This competition is driving ticket prices down, and causing most airlines to be unprofitable.

In another 10-20 years the airline industry will mature and the competition will decrease as airlines go under or merge. This will reduce the number of seats in the market and raise ticket prices to a level that will allow the industry to be profitable.

If oil prices rise I think it could speed the process up. I don't think airline wages will ever be what they used to be. There are too many pilots and too few jobs.

Just my semi self-educated theory.
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Old 02-27-2010 | 08:24 AM
  #6  
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Originally Posted by FlyingNasaForm
Here is my theory:

The airline industry as we know (deregulated) is very young, just 32 years old. There are quite a few airlines out there, and lots of seats to be sold. This competition is driving ticket prices down, and causing most airlines to be unprofitable.

In another 10-20 years the airline industry will mature and the competition will decrease as airlines go under or merge. This will reduce the number of seats in the market and raise ticket prices to a level that will allow the industry to be profitable.

If oil prices rise I think it could speed the process up. I don't think airline wages will ever be what they used to be. There are too many pilots and too few jobs.

Just my semi self-educated theory.
And when someone goes under, another will come into the market. They'll lowball everyone else, keeping prices the same.
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Old 02-27-2010 | 09:01 AM
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Yeah, my bad... not only was that a drunken post, but a drunken new topic.

Never drink and post.
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Old 02-27-2010 | 09:20 AM
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Exclamation It Might Get Much, Much Worse...

I've been losing sleep over this. Latest rumor around SKW is that INC is contemplating joining Star Alliance as an independent airline...

Why, you might ask?

Obviously the regional business model as it stands today is questionable going forward. Larger regionals with lots of cash are contemplating how to best set themselves up for whatever the future may hold.

RAH is obviously striking out on their own, but with huge associated risks...they may not be able to compete for future feed contracts if they are deemed to be a dangerous competitor.

SKW apparently is also thinking about how to go independent, but with a twist...how do you go indie but avoid creating antagonism with your feed customers? Star Alliance might be the answer...

SKW goes independent, but with the concurrence of UAL.

UA Scope has a major (possibly catastrophic), loophole allowing codeshares. We have already seen this in action with that joint venture thing.

UAL circumvents their scope, and effectively transfers domestic narrowbody flying to SKW vie Star Alliance codeshares. SKW pays 50 seat rates plus 7% BHO

UAL gets cheaper labor and a risk-sharing partner, SKW gets independence without jeopardizing their existing UAX feed.

If this were to happen, it would obviously set the precedent for the industry and force drastically lower domestic/narrowbody payscales.

If this is contractually possible, even the possibility would give UA major leverage in their upcoming negotiations.

Thoughts? Anybody know more details about UA scope as it pertains to code shares?

BTW, this is not just some fantasy scenario that I made up.
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Old 02-27-2010 | 09:47 AM
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Gets Weekends Off
 
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U S A F..............
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Old 02-27-2010 | 10:20 AM
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Originally Posted by AMND1
Yeah, my bad... not only was that a drunken post, but a drunken new topic.

Never drink and post.
So that means you didn't bring a girl home from the bar.
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