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Originally Posted by minimwage4
(Post 2250808)
Oh come on how do you know that?
https://twitter.com/rschuur_aero/sta...42277750013952 |
Originally Posted by WesternSkies
(Post 2250986)
Skyw could fly all 100 for Alaska right?
Please vote in scope Alaska if true. |
Originally Posted by minimwage4
(Post 2250808)
Oh come on how do you know that?
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Originally Posted by sailingfun
(Post 2251101)
Try google or read a trade publication like avweek.
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Originally Posted by rickair7777
(Post 2250816)
They're not great at saving money, what they do is provide frequency which is important to the kind of habitual flyers we have in the US market. If operated by mainline, they would mostly lose money.
In the past operating RJ's at a loss was accepted and justified as feed for mainline hubs. Lately majors prefer that almost all of their flying turn a profit, but the pendulum could swing back. Hence, majors really view it more as a cost factor that needs to be minimized. |
Originally Posted by N1234
(Post 2251184)
What does making money really mean? Regional feed is supporting the connecting flights. How much revenue you allocate to the regional feed is a pure accounting exercise.
Hence, majors really view it more as a cost factor that needs to be minimized. |
Originally Posted by higney85
(Post 2251193)
When regional feed is roughly half of the domestic brand feed, chopping off the rj kills not only the half of domestic feed, but the majority of intl feed, on a macro level. Few truly fly from JFK-LHR as their trip, it's a layover involving an RJ to complete the journey. You get no pushback on mainline taking flying back, but regionals exist to supply feed at a discount. Thinking otherwise isn't following the money. If 2 mainline flights a day, same seats, cheaper overall costs, worked better than 5-6 RJ's a day, it would have been done in 2009 when things went sideways. Instead of 5-6 a day, the schedule was 4-5 in an effort to ensure profitability, or minimize loss. You can't put mainline (76+ everywhere) and make a profit without frequency and a network to meet demand of both time and cost. Once you kill a station from one carrier, the others simply grow the presence. The same existed with 19 seats, 34 seats, and 50 seats. The population grows and costs come down per seat to allow overall growth, but at the end of the day the frequency is still a need and empty seats are lost revenue. Years down the road a 50 seater 5x a day will likely be replaced with a 76 seater 6x a day. That's 250 seats vs 456 seats. The difference is population growth vs operating costs. More seats filled, lower cost, newer aircraft are cheaper per seat mile, if you fill them. Economics 101. If you can fill 400+ a day at X price, the margin of profit is higher than 250 @ Y.
I do understand the network externalities of a hub and spoke model as well as the need for frequency. My point was regrading profitability accounting and the insinuation that regional feeder routes need to be profitable. Tickets are priced and sold by origin-destination market. So revenue is really accruing at a level of: ROC - LHR SYR - LHR etc. But cost are obviously incurred by route, i.e. ROC - JFK, SYR - JFK and JFK - LHR. To come up with any sorts of profitability metric to speak of you need to allocate revenue from the ROC - LHR OD market between ROC - JFK and JFK - LHR. There are various approaches to do that, e.g. distance in miles and other ways. But they are just artificial accounting practices and generally speaking, the long-haul portion looks more favorable, i.e. more profitable than the feeder portion in all of these approaches as costs are generally not linear with distance flown or whatever other metric they chose. From a mainline partner point of view it really comes down to minimizing the cost in general and optimizing network profitability. But talking about feeder profitability is a little misleading. |
Originally Posted by tom11011
(Post 2250848)
If Delta flies the ERJ-175 and pays DC9/717 wages, they are setting the new industry standard wages higher. So when a company like RAH goes into their next negotiating session and the issue of pay becomes a point where the parties cannot come to an agreement, industry standard pay becomes relevant to binding arbitration or an imposed settlement. What are you guys smokin?
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Originally Posted by tom11011
(Post 2250848)
If Delta flies the ERJ-175 and pays DC9/717 wages, they are setting the new industry standard wages higher. So when a company like RAH goes into their next negotiating session and the issue of pay becomes a point where the parties cannot come to an agreement, industry standard pay becomes relevant to binding arbitration or an imposed settlement. What are you guys smokin?
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Originally Posted by higney85
(Post 2251193)
When regional feed is roughly half of the domestic brand feed, chopping off the rj kills not only the half of domestic feed, but the majority of intl feed, on a macro level. Few truly fly from JFK-LHR as their trip, it's a layover involving an RJ to complete the journey. You get no pushback on mainline taking flying back, but regionals exist to supply feed at a discount. Thinking otherwise isn't following the money. If 2 mainline flights a day, same seats, cheaper overall costs, worked better than 5-6 RJ's a day, it would have been done in 2009 when things went sideways. Instead of 5-6 a day, the schedule was 4-5 in an effort to ensure profitability, or minimize loss. You can't put mainline (76+ everywhere) and make a profit without frequency and a network to meet demand of both time and cost. Once you kill a station from one carrier, the others simply grow the presence. The same existed with 19 seats, 34 seats, and 50 seats. The population grows and costs come down per seat to allow overall growth, but at the end of the day the frequency is still a need and empty seats are lost revenue. Years down the road a 50 seater 5x a day will likely be replaced with a 76 seater 6x a day. That's 250 seats vs 456 seats. The difference is population growth vs operating costs. More seats filled, lower cost, newer aircraft are cheaper per seat mile, if you fill them. Economics 101. If you can fill 400+ a day at X price, the margin of profit is higher than 250 @ Y.
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Originally Posted by Mercyful Fate
(Post 2251354)
Good grief, amazes me how many people still just don't get why there is regional model at all, and why majors don't want to dabble in it.
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Ok I have to ask as a non-pilot, why does Delta have sway over SkyWest in terms of what planes it can fly? If SkyWest wants to fly a 87.3k pound plane and Delta limits its regionals to 86k, what business is it of theirs? SkyWest pilots are SkyWest employees, not Delta employees, aren't they?
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Originally Posted by Ordell
(Post 2253452)
Ok I have to ask as a non-pilot, why does Delta have sway over SkyWest in terms of what planes it can fly? If SkyWest wants to fly a 87.3k pound plane and Delta limits its regionals to 86k, what business is it of theirs? SkyWest pilots are SkyWest employees, not Delta employees, aren't they?
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Originally Posted by Ordell
(Post 2253452)
Ok I have to ask as a non-pilot, why does Delta have sway over SkyWest in terms of what planes it can fly? If SkyWest wants to fly a 87.3k pound plane and Delta limits its regionals to 86k, what business is it of theirs? SkyWest pilots are SkyWest employees, not Delta employees, aren't they?
SKYW can fly hourly A380's from their SGU hub to every city in America if they want to. They just can't do it while being a DL partner. SKYW is free to go IndyAir anytime they want to. But as long as they want to do DL (or UAL, etc) flying, they are subject to those agreements and WRT DL, DALPA owns the code and controls what they can do. They do not have, nor will we grant, them permission to go above our current seat and weight limits. Not allowed. Period. |
Originally Posted by gloopy
(Post 2253500)
Because we own the code. Period.
SKYW can fly hourly A380's from their SGU hub to every city in America if they want to. They just can't do it while being a DL partner. SKYW is free to go IndyAir anytime they want to. But as long as they want to do DL (or UAL, etc) flying, they are subject to those agreements and WRT DL, DALPA owns the code and controls what they can do. They do not have, nor will we grant, them permission to go above our current seat and weight limits. Not allowed. Period. |
Originally Posted by gloopy
(Post 2253500)
Because we own the code. Period.
SKYW can fly hourly A380's from their SGU hub to every city in America if they want to. They just can't do it while being a DL partner. SKYW is free to go IndyAir anytime they want to. But as long as they want to do DL (or UAL, etc) flying, they are subject to those agreements and WRT DL, DALPA owns the code and controls what they can do. They do not have, nor will we grant, them permission to go above our current seat and weight limits. Not allowed. Period. |
Originally Posted by Ordell
(Post 2253452)
Ok I have to ask as a non-pilot, why does Delta have sway over SkyWest in terms of what planes it can fly? If SkyWest wants to fly a 87.3k pound plane and Delta limits its regionals to 86k, what business is it of theirs? SkyWest pilots are SkyWest employees, not Delta employees, aren't they?
You own a McDonald's. It's your restaurant, but are you allowed to sell pizza and egg rolls? No. |
Originally Posted by bnkangle
(Post 2253529)
You own a McDonald's. It's your restaurant, but are you allowed to sell pizza and egg rolls? No.
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Originally Posted by bnkangle
(Post 2253529)
You own a McDonald's. It's your restaurant, but are you allowed to sell pizza and egg rolls? No.
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Originally Posted by bnkangle
(Post 2253529)
You own a McDonald's. It's your restaurant, but are you allowed to sell pizza and egg rolls? No.
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Originally Posted by TimetoClimb
(Post 2253549)
Not to nitpick but McDonald's back in hawaii used to have portugese sausage offerings, so I believe there is some wiggle room.
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So basically the majors have SkyWest by the balls and are squeezing hard. And it sounds like SkyWest has no leverage to counter them.
Honestly, does anyone think that if they didn't have a weight clause forced on them they would suddenly start flying 737s/A320s and compete against their partners? |
Originally Posted by Ordell
(Post 2253576)
So basically the majors have SkyWest by the balls and are squeezing hard. And it sounds like SkyWest has no leverage to counter them.
Honestly, does anyone think that if they didn't have a weight clause forced on them they would suddenly start flying 737s/A320s and compete against their partners? |
Originally Posted by GogglesPisano
(Post 2253594)
It's happened before. Didn't end well for the regional involved.
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The Expressjet branded flying didn't work out too well either, timing is everything.
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Originally Posted by JLAMS16
(Post 2253517)
You sound like a fun guy Gloopy.........
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Originally Posted by Mesabah
(Post 2253602)
Indy went solo in the worst aviation economic environment in history. That said, the share holders at SKY would never allow it, as ASA's are basically free money.
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Originally Posted by GrassLandings
(Post 2253561)
That would actually be a Mcd's product. Most chains will vary their menu across the globe to meet local food tastes. Ever been to mcdonalds in asia? Not the same, at all.
Its mutually beneficial to both parties. The franchisee gets to easily sell a well known, viable product without doing much marketing and the corporate parent collects royalites without having to manage the restaraunt. |
Originally Posted by bnkangle
(Post 2253710)
Yes, but the point is, as a franchisee, the original corporate company dictates whats on the menu whether it be Big Macs in the US or Sushi Burgers in Japan.
Its mutually beneficial to both parties. The franchisee gets to easily sell a well known, viable product without doing much marketing and the corporate parent collects royalites without having to manage the restaraunt. |
Originally Posted by gloopy
(Post 2253692)
Thanks! Scope is the most important part of any pilot contract. It is literally career and profession defining. This profession wouldn't be any fun if airline managements had unlimited ability to shop every plane around to the lowest bidder constantly. Scope = stability = earnings = fun. :cool:
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Originally Posted by Mercyful Fate
(Post 2253772)
Pilots own what code? Oh yea, they have a vote on their own code.
How about this: The pilots' collective bargaining agent has a contract with the airline that includes a restriction that specifies all aircraft above a certain weight or with more than a certain number of seats must be flown by those pilots if the flying is done under the code/marketing of the airline for which they fly. Further (in Delta's case) if any regional affiliate exceeds those restrictions, even under another code/fee-for-departure agreement, they may no longer fly under a regional affiliate/codeshare/fee for departure with that airline. Not ownership of a "code." More than a vote. A contractual restriction. |
Originally Posted by Ordell
(Post 2253452)
Ok I have to ask as a non-pilot, why does Delta have sway over SkyWest in terms of what planes it can fly? If SkyWest wants to fly a 87.3k pound plane and Delta limits its regionals to 86k, what business is it of theirs? SkyWest pilots are SkyWest employees, not Delta employees, aren't they?
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Originally Posted by BeatNavy
(Post 2253718)
How'd you guys do holding the line on WB scope in TA16? I know you think it's just 48.5 to 46.5 and may not be a problem at all (i read your DL forum post and have lots of DL friends), but if the company didn't want it and didn't see upside to it (for them, not you), they wouldn't have stuck it in there. At least there won't be more jumbo RJs flying for DCI. That's a plus. Thanks (honestly) for raising the bar for the rest of us with pay. I just wish scope, touted by you as the most important part of any pilot contract, wasn't sold...not even one Atlantic crossing a day.
So to say it was a simple "selling" of 2% in that one JV isn't what happened at all. Now that said, I still think our scope, pre TA and post TA, is lacking in that area. I'm not against international JV's, and honestly you'd have to be an idiot to think a US airline could fly the globe like its 1960 with no foreign partners. Not going to happen, not now not ever again. JV's are vital. But they need to be structured to protect our side of them. The TA scope makes more improvements in that area than it gives up. But we still have way more work to do. The jumbo RJ growth was smacked down, and SEA was at least protected from future non Alaska poaching. That was more a tying up of a loose end so it couldn't bite us later than it was a current scope improvement, but every little bit helps. |
Originally Posted by Mercyful Fate
(Post 2253772)
Pilots own what code? Oh yea, they have a vote on their own code.
You wanna fly DL code? You have to be in compliance with the DALPA PWA. End of story. |
Originally Posted by Mercyful Fate
(Post 2253847)
I'm not the one you need to explain this to. You got the wrong person.
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Originally Posted by Mercyful Fate
(Post 2253886)
Talk to GP. He can explain it to you.
You want to fly DL code, you must do it IAW the DALPA pilot agreement. Period. We do allow some of it to be outsourced, and IMO too much. But that is our choice. |
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