New AA Regional Aircraft Order
#51
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From: Taco Rocket Operator
What's not stated in this argument was United was renegotiating the Q400 contract to make it profitable. Delta's DIP financing demands, and they were demands stated they had to exit the United flying. Without that the contract would have been renegotiated and the would probably still be flying at Pinnacle.
#52
Probably not because even though UAL was willing to negotiate a new price, the cost of running the Qs on a seperate certificate under the new contract created enormous training costs and training events that made the operation marginal. The Qs came in under the old Continental scope, and until UAL had new joint scope they could not be on the same certificate as the CRJ 900s. Any way you look at it the Q operation was a financial disaster, and Delta very rightly refused to invest money in an operation that had no prayer of being financially viable.
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#54
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Shy this same Delta management team allowed Comair (while it was wholly owned by Delta) to bid on RFPs for other airlines while they were owned by Delta. I don't know how to make it any plainer than that for you. Eagle at one time operated codeshares for Northwest on the west coast. If it makes money, they'll do it.
You can say the same thing for the entire industry but people still invest in it and buy companies. FFD makes the mainlines more money than revenue sharing. That is why the entire industry went FFD in the late 90s. Any industry analyst worth his salt will tell you there is going to be lot of consolidation of companies and certificates over the next five years.
#55
Six pages and only a couple of posts that have anything to do with the original topic.
APC has become just one big wild west show. No Sheriffs in town from the looks of it. Otherwise the hammer would have come down a long time ago in this thread. It is the same couple of posters who keep drifting it.
APC has become just one big wild west show. No Sheriffs in town from the looks of it. Otherwise the hammer would have come down a long time ago in this thread. It is the same couple of posters who keep drifting it.
#57
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From: Taco Rocket Operator
FFDs in the regional industry is a dying model. The mainline is going to expose the regional to more costs than before. The regionals are no longer what they were meant to be, a cheap labor force that had constant movement. Now everyone at the regionals is basically topped out, 8-12+ year CAs and lots of 6+ year FOs. Long run, this high labor cost and FFD model is not sustainable. Delta is taking the first step at fixing it and the most proactive of the legacies. 5 years from now, regionals will start to disappear and many regional flights will be done by the 717 at Delta. The regionals will also not be able to get ATP rated pilots for only 23 grand a year. The only way to attract an already short pool of regional applicants is to offer more pay, and it will come to a breaking point where a regional just can't do it at a lower cost than a major. There will be more industry consolidation in the next 5 years, but the regionals will shrink in pilot numbers over that time.
Shy you're crazy. Regionals would love to go back to the revenue sharing model. They were raking in the cash under this model in the late 90s. FFD was created because mainlines were unhappy with spending all the money on marketing and allowing regionals to piggyback with little expense. The only routes mainline is interested in revenue sharing are EAS routes that have very low load factors. The last 3 major RFP awards (Republic/Eagle, Trans States/United, and Delta/Pinnacle) were all capacity purchase agreements.
We'll see if the pilot shortage pushes more flying up to mainline. I'm not sold on the shortage yet, but the indications are it may be happening.
#59
Shy this same Delta management team allowed Comair (while it was wholly owned by Delta) to bid on RFPs for other airlines while they were owned by Delta. I don't know how to make it any plainer than that for you. Eagle at one time operated codeshares for Northwest on the west coast. If it makes money, they'll do it.
#60
Not going to come to PSA. Here is why I think that: PSA doesn't have the infrastructure for growth. We have one Sim that runs 24hrs/day to accommodate recurrent, new hire etc. They've been asking airways for another, no luck. The one guy who wanted growth, the VP, just passed away. If we get more 700/900's our pay will actually go up because of the blended rate. Parker is obviously trying to get labor to fly these things cheaper, not actually pay pilots more than now. All that, and I'm very confident in saying that PSA is not going to be considered for this flying.
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