The Worst has Yet to Come for Regional Airlines
10-31-2006 | 08:06 AM
#32
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From: Bug Smasher Captain, CFI
Ultimately, regionals are still businesses and there will come a time when they will absolutely not be able to offer their services for any less; I think/hope that we are approaching that point.
I think the premise of the original post is that they will not make for good investments for very much longer- I cannot argue with that at all. They have already cut costs/pay so much that very soon (as posted earlier) some of them will not be able to make a profit even if they had no labor costs.
I think the premise of the original post is that they will not make for good investments for very much longer- I cannot argue with that at all. They have already cut costs/pay so much that very soon (as posted earlier) some of them will not be able to make a profit even if they had no labor costs.
It will be interesting to see how the consumer reacts to escalating ticket prices.
10-31-2006 | 08:07 AM
#33
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From: Bug Smasher Captain, CFI
10-31-2006 | 08:40 AM
#35
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From: L Side
C152driver- Ticket prices 'escalating' to more than the cab fare to the airport shouldn't be a huge pill to swallow for most of the travelling public. As you have said, "when price is...."- that mentality has just about reached its limits. You have some people that shop only at Walmart and others, such as myself, that avoid the Walmarts of the world as much as is practical.
10-31-2006 | 08:59 AM
#36
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From: Bug Smasher Captain, CFI
C152driver- Ticket prices 'escalating' to more than the cab fare to the airport shouldn't be a huge pill to swallow for most of the travelling public. As you have said, "when price is...."- that mentality has just about reached its limits. You have some people that shop only at Walmart and others, such as myself, that avoid the Walmarts of the world as much as is practical.
Well, I suppose that depends on how high they go. Price elasticity (did I spell that right?) applies to the discount airlines as well and I have heard that they have been increasing their fares, too. Perhaps the passenger airlines should take a hint from the cargo guys and add a "fuel surcharge" to the ticket.
My home city isnt well served by discounter airlines, so I nearly always choose the "Neiman-Marcus" airline over the "Walmart" airline.
In my comment about "willing to sell themselves for less", I meant to say that there will always be potential regional pilots out there that will be willing to take the short cut to a job.
10-31-2006 | 10:46 AM
#37
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The OPs topic is being played out at Horizon right now. The company keeps attempting to dangle growth opportunities as contract carriers for major airlines, and asserts that we would get them, "if only certain labor costs weren't so high..." This strategy is met with a big shrug by the pilot group. We really aren't interested in grabbing a jersey and joining the race to the bottom. Thanks, anyway.
10-31-2006 | 04:59 PM
#39
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From: FO dhc-6
The OPs topic is being played out at Horizon right now. The company keeps attempting to dangle growth opportunities as contract carriers for major airlines, and asserts that we would get them, "if only certain labor costs weren't so high..." This strategy is met with a big shrug by the pilot group. We really aren't interested in grabbing a jersey and joining the race to the bottom. Thanks, anyway.
11-01-2006 | 04:49 AM
#40
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From: Corporate Pilot
Yea !!
The OPs topic is being played out at Horizon right now. The company keeps attempting to dangle growth opportunities as contract carriers for major airlines, and asserts that we would get them, "if only certain labor costs weren't so high..." This strategy is met with a big shrug by the pilot group. We really aren't interested in grabbing a jersey and joining the race to the bottom. Thanks, anyway.
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