RAH drops Midwest name in favor of Frontier
04-13-2010 | 06:48 PM
#11
Gets Weekends Off
Joined: Dec 2007
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From: A320 CA
Of course UA loves the deal, now they have somebody to take the heat off of them from Southwest. Contracts with UA, Delta, US Airways are all solid till they expire some time in the next 5-10 years or so. The regional lift is changing folks and you either adapt like BB did or end up taking on new risks for fee for departure. Mainline is starting to impose risks to regionals such as fuel, cxld flights, etc for future contracts. BB knew that and is taking the first step in a new established branding. It's like chess, you need to make the first move in an ever changing game called aviation.
04-13-2010 | 07:03 PM
#12
Gets Weekends Off
Joined: Jan 2008
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From: blueJet
04-14-2010 | 06:09 AM
#14
Gets Weekends Off
Joined: Jan 2009
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Codeshare is not revenue sharing or fee for departure. If codeshare is the "future of the regionals" then the past is repeating itself. Codeshare was how the regionals used to operate. Codesharing with a major and getting the revenue from the flights it operated. The problem was that mainline was only getting feed, not direct revenue from the regional flight. Thats why fee for departure came into being. With ffd, a major can get feed AND revenue from a regional flight. Codesharing is nice to fill some extra seats, but it will not allow you to farm out your airline. You will starve while your codeshare partner gets rich. Make no mistake, the majors (UAL in particular) want fee for departure, "joint ventures", and "revenue sharing". That way they can get the revenue without the operating expense.
04-14-2010 | 06:39 AM
#17
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From: B757/767
You don't understand the whole codeshare thing, do you? RAH will not be able to just codeshare to profitability. Skywest can not just buy big jets and codeshare to profitability. There are so many more expenses when you start paying for your own gas, reservation systems, ticketing, landing fees, taxes, etc. The fee for departure contracts will begin drying up, and it's becoming a whole new ballgame.
It willeasier for RAH since they aquired F9 and have many of these things in place already.
04-14-2010 | 06:41 AM
#18
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You don't understand the whole codeshare thing, do you? RAH will not be able to just codeshare to profitability. Skywest can not just buy big jets and codeshare to profitability. There are so many more expenses when you start paying for your own gas, reservation systems, ticketing, landing fees, taxes, etc. The fee for departure contracts will begin drying up, and it's becoming a whole new ballgame.
04-14-2010 | 06:43 AM
#19
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Joined: Oct 2006
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From: B757/767
Ummmmmm....ok. I don't see any codeshares with RAH anywhere. Trust me when I say they are burning through a lot of cash right now. Not saying they are going under, but what BB is doing is not cheap.
04-14-2010 | 10:27 AM
#20
Che Guevara
Joined: Aug 2005
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I don't think this next quarter will be profitable but they have been so far. They haven't had to dig into the savings yet so luckily a large chunk of cost associated with these moves has been absorbed already. Still a lot left out there but I don't think it's as bad as most think.
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