Do you understand how the whole regional, fee for departure thing works? Skywest, or any other regional for that matter, doesn't sell its own tickets. They get paid only by the mainline carrier(s) they have contracts with, and their profitability is based on the quality of those contracts. Where they fly to and from doesn't affect their bottom line.

 

I still don't think Spirit is going to displace those regardless, because I'm not convinced Spirit can fly a c-series cheaply enough to displace everyone else servicing those markets. The regionals have been flying small planes on small profit margins for quite a while so trying to out-small the smaller operators doesn't seem to be an attractive business strategy no matter who's selling the tickets. Just because Spirit is super-efficient with the A320 doesn't make me assume that they'll be so efficient with a smaller plane that they can create a new market at the low end or displace existing smaller plane operators.

Spirit lists their payscale and "juniority" as a CASM "tailwind" in their investor presentation. How much below regional payscales do they think they can go, and are they planning on flying them with crews somehow "more junior" than other small operators, to maintain that CASM competitive advantage? I don't see maneuvering airspace down on that end of the costs equation, so where's the compelling business advantage to justify adding an airframe type to either open up a new market or capture an existing one?

Of course, my MBA was mail order so I'm probably full of crap. I just don't see the business model where it makes sense for spirit to buy a new type of smaller planes, thats all. I could be wrong, I'm totally the new guy, and this is just bar talk for discussion...

 

Man just stick to flying. This stuff is way above your pay grade.

It's better to keep your mouth shut and appear stupid than open it and remove all doubt - Mark Twain

 

Sometimes it's just fun to speculate and play CEO. No harm in it.

One thing to keep in mind, as we start have an AirTran-like revival in the near future, they ran with a two type operation and did quite well at it. People return to what worked for them in the past, what they're familiar with and good at. It wouldn't surprise me if Mr. Fornaro convinced the Board that it worked at AirTran, it can work here at Spirit. Not saying it's right, not saying it's wrong, or even this is in the plan, but it wouldn't surprise me.

With fuel prices being so low, it doesn't make sense to me, but who knows, I'm just a dumb pilot who's Master's Degree was from mail order too.

 

Fume event MCO. News all over it. NK says it was bad freon in the packs. Are you f'n kidding me?!?!

 

Dammit, the jig is up; that freon is a crucial ingredient in mixing chemtrails.... Damn our spokesman for outing us!

 

I couldn't give two shoots where we fly as long as we are compensated properly.

Small markets are actually very lucrative. Regional airlines don't make money because the mainline "partner" keeps all the profits and pays the regional a set rate per hour no matter where they go or how many folks are on the plane.

Try buying a ticket from BFE to BFE. It's super expensive. It's just a matter of identifying which markets can be connected point to point and fill a jet. Allegiant does it and it's the southwest bread and butter. People love not having to connect in a hub city

That said, where the fukc is my quid and my RATIFIABLE contract?!

 

Those routes aren't profitable on their own for the regionals or the mainline that subsidizes them. They recoup the losses on the connections. So homey flies Dayton to philly to Miami.
They make the money over the entire leg but if divided up by segment they lose on the regional leg


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Although I prefer to not see a new plane on property..
And
Personally
Don't want to or plan to leave the bus... I think if it's a too good of a deal they might decide to go that route. Airbus is pretty back logged with orders. Could they deliver another 100 in next 8 years? Maybe but just take a look at their outstanding orders. Maybe not.
Bombardier has one big suitor (delta). My guess is bombardier would basically seel them to us at
Cost along with some free sim time and maintenance parts for a period of time to get the publicity and ink another large order. Not to mention they can deliver them much quicker. (Assuming). Bringing another type on property would have headaches but if the cost benefit analysis shows that they are 1/3 the price of the Airbus I think they would seriously consider it... And they prolly have

 

No real benefit either.