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Old 07-26-2014 | 06:52 AM
  #1671  
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Originally Posted by tom11011
There is no way to compete with wholly owned carriers cost structures.
Well, staffing is another issue, but that's a discussion for a different time.
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Old 07-26-2014 | 07:41 AM
  #1672  
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Originally Posted by sqwkvfr
You know, I think that Loon is a complete troll, but I actually agree that Bedford has his sights on an arrangement with a foreign carrier or consortium of carriers to operate those C-Series aircraft. Bedford's FFD operation is falling apart at the seams, I think he knows that the regional model in it's current form is unsustainable, and is therefore looking for a post mega-regional era business plan.

I won't be around long enough to care, but RJET's pilots need to have meaningful C-Series rates in the next TA, otherwise they're gonna be flying those things around for regional jet rates for YEARS after the next contract becomes amendable while the company, with the NMB in it's pocket, again drags out negotiations for the better part of a decade.
Of course he's looking. What else is he going to tell investors? However, that still doesn't address the issues I presented earlier. Will these carriers pay for fuel, MX, training, ticketing, reservations, aircraft lease payments, etc? Many costs that are typically covered by the FFD deal will come about. If BB couldn't make it work with Midwest or Frontier, how is he going to make it work from scratch, with shiny new airplanes that have big lease payments?
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Old 07-26-2014 | 08:52 AM
  #1673  
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Originally Posted by johnso29
Will these carriers pay for fuel, MX, training, ticketing, reservations, aircraft lease payments, etc?
Sure, why not? The current regional model might be cost prohibitive with the current scope and pricing structures of our current mainline partners, but 130 seat aircraft being flown by cheap regional crews feeding international routes and perhaps operating other point-to-point routes of @1000NM might very well be exactly what more than one of these foreign carriers are seeking to try to get a larger foothold on the American international market.

Bedford himself has hinted at this and mainline unions are speaking about code sharing as the next threat to their mainline jobs, so this is most certainly not some crackpot notion.
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Old 07-26-2014 | 09:10 AM
  #1674  
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Originally Posted by sqwkvfr
Sure, why not? The current regional model might be cost prohibitive with the current scope and pricing structures of our current mainline partners, but 130 seat aircraft being flown by cheap regional crews feeding international routes and perhaps operating other point-to-point routes of @1000NM might very well be exactly what more than one of these foreign carriers are seeking to try to get a larger foothold on the American international market.

Bedford himself has hinted at this and mainline unions are speaking about code sharing as the next threat to their mainline jobs, so this is most certainly not some crackpot notion.
Do you really think operating as a "international feeder" is as beneficial to them as alliance code sharing?
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Old 07-26-2014 | 09:23 AM
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Originally Posted by CBreezy
Quote:





Originally Posted by sqwkvfr


Sure, why not? The current regional model might be cost prohibitive with the current scope and pricing structures of our current mainline partners, but 130 seat aircraft being flown by cheap regional crews feeding international routes and perhaps operating other point-to-point routes of @1000NM might very well be exactly what more than one of these foreign carriers are seeking to try to get a larger foothold on the American international market.

Bedford himself has hinted at this and mainline unions are speaking about code sharing as the next threat to their mainline jobs, so this is most certainly not some crackpot notion.




Do you really think operating as a "international feeder" is as beneficial to them as alliance code sharing?
I don't know. However I think that Bedford thinks that it is beneficial to the survival of RJET in a post-mega regional era.
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Old 07-26-2014 | 10:18 AM
  #1676  
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Originally Posted by sqwkvfr
Sure, why not? The current regional model might be cost prohibitive with the current scope and pricing structures of our current mainline partners, but 130 seat aircraft being flown by cheap regional crews feeding international routes and perhaps operating other point-to-point routes of @1000NM might very well be exactly what more than one of these foreign carriers are seeking to try to get a larger foothold on the American international market.

Bedford himself has hinted at this and mainline unions are speaking about code sharing as the next threat to their mainline jobs, so this is most certainly not some crackpot notion.
Yes, but as a codeshare partner RAH is not going to get the full fare. What airline today successfully relies on revenue from nothing but a codeshare agreement? Do you honestly think that a portion of fares from code share partners will provide sustainable revenue? Plus, how much access will RAH have to airports? Sure, RAH owns some slots here and there, but how many of the slots that RAH uses are diner by the airline they're dba? If the foreign carrier doesn't have slots to give, where will RAH get them from?

I don't think pure codeshare agreements could sustain an airline's profitability.

Last edited by johnso29; 07-26-2014 at 11:59 AM.
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Old 07-26-2014 | 11:34 AM
  #1677  
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Originally Posted by sqwkvfr
Well, staffing is another issue, but that's a discussion for a different time.
I am sure with HR's continued quest to recover training costs by taking legal action against pilots who left early will help out their recruiting efforts. That and the horrible compensation, quality of life and relationship with management. HR at RAH still thinks it is operating in the 1990's and people would be willing to pay for their training and still work for nothing.
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Old 07-26-2014 | 11:45 AM
  #1678  
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Originally Posted by A320ULCC
I am sure with HR's continued quest to recover training costs by taking legal action against pilots who left early will help out their recruiting efforts. That and the horrible compensation, quality of life and relationship with management. HR at RAH still thinks it is operating in the 1990's and people would be willing to pay for their training and still work for nothing.
Sing it! "Change the culture"...right.
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Old 07-26-2014 | 11:47 AM
  #1679  
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Originally Posted by johnso29
Yes, but as a codeshare partner RAH is not going to get the full fare. What airline today successfully relies on revenue from nothing but a codeshare agreement? Do you honestly think that a portion of fares from code share partners will provide sustainable revenue? Plus, how much access will RAH have to airports? Sure, RAH owns some slots here and there, but how many of the slots that RAH uses are diner by the airline they're dba? If the foreign carrier doesn't have slots to give, where will RAH get them from?

I don't think pure codeshare agreements could sustain nam airline's profitability.
Who's to say that it's gonna be a traditional codeshare agreement? Also, exactly how many airports do you think are slot controlled? That doesn't strike me as much of a problem.
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Old 07-26-2014 | 11:55 AM
  #1680  
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Originally Posted by sqwkvfr
Who's to say that it's gonna be a traditional codeshare agreement? Also, exactly how many airports do you think are slot controlled? That doesn't strike me as much of a problem.
The ones where are those big international carriers fly. Doesn't do much good if you can't get the feed into major international airport unless you can convince Emirates to fly to Cleveland.

Also, what would be an alternative codeshare agreement? Is there something other than I pay you $X to move Y people?
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