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-   -   Trans States acknowledges MRJ scope issues (https://www.airlinepilotforums.com/trans-states-airlines/86631-trans-states-acknowledges-mrj-scope-issues.html)

TurbineTime 02-24-2015 03:06 PM


Originally Posted by tom11011 (Post 1830907)
This was on the ALPA daily email.
Trans States expects first MRJ in 2017; awaits scope clause relief | Airframes content from ATWOnline
Trans States Holdings said it begin taking delivery of “its order for 50 Mitsubishi Regional Jets” in 2017. Speaking “on the sidelines of the delivery ceremony for American Airlines’ first Embraer E-175 in” Brazil, Trans States president Richard Leach conceded that the MRJ90s the company “has on order will have a maximum takeoff weight (MTOW) that is higher than is allowed by scope clauses in US mainline airlines’ pilot labor contracts.” Trans States, the parent of US-based regionals Trans States Airlines, Compass Airlines and GoJet Airlines, has not decided “which major airline Trans States will operate the MRJ90s for.”

Also of note, the Cseries 300 is scheduled for its first flight in 2 days and is supposed to start deliveries within the next year. Who is republic supposed to operate it for??

galaxy flyer 02-24-2015 03:07 PM


Originally Posted by TurbineTime (Post 1831376)
Also of note, the Cseries 300 is scheduled for its first flight in 2 days and is supposed to start deliveries within the next year. Who is republic supposed to operate it for??

It'd be ideal on lots of Alaska routes out of SEA and no scope issues?

GF

pete2800 02-24-2015 03:11 PM


Originally Posted by Mercyful Fate (Post 1831362)
Sure there is something preventing them, and it is cost of operating those aircraft compared to what regionals can do it for. Besides, major "mainline" carriers don't want to be bothered with that kind of flying anyway. They know where the gravy is, and it is bigger planes with more seats, flying longer hauls.

There is definitely as cost advantage to the regional model, but I'm left wondering how much of an advantage it really is.

For example: SkyWest in 2013 had $59 million in profit on revenue of $3.3 billion. There's a 1.78% return. For this privilege, their mainline partners are willing to pay for all of the associated costs of having a management team and administration teams in place to run this company. So essentially, if you were to remove the senior and middle management and erroneous admin personnel, and push the aircraft over to the mainline certificate, you'd be saving quite a bit of money. You'd lose out on the hourly rate for the crews, but considering it would most likely go very junior, once a pilot had adequate seniority, they'd bid over to an existing airframe... so the years on the payscale past the first few would likely be unused.

There's a definite break-even point, and the margin is pretty close as it is. If the staffing at regionals gets bad enough, we might see someone try to find out exactly how much it costs...

CBreezy 02-24-2015 03:25 PM


Originally Posted by pete2800 (Post 1831380)
There is definitely as cost advantage to the regional model, but I'm left wondering how much of an advantage it really is.

For example: SkyWest in 2013 had $59 million in profit on revenue of $3.3 billion. There's a 1.78% return. For this privilege, their mainline partners are willing to pay for all of the associated costs of having a management team and administration teams in place to run this company. So essentially, if you were to remove the senior and middle management and erroneous admin personnel, and push the aircraft over to the mainline certificate, you'd be saving quite a bit of money. You'd lose out on the hourly rate for the crews, but considering it would most likely go very junior, once a pilot had adequate seniority, they'd bid over to an existing airframe... so the years on the payscale past the first few would likely be unused.

There's a definite break-even point, and the margin is pretty close as it is. If the staffing at regionals gets bad enough, we might see someone try to find out exactly how much it costs...

Delta's net income for 2014 was only 1.7% of total Revenue. So, does that mean they should close those doors too?

pete2800 02-24-2015 03:26 PM


Originally Posted by Mercyful Fate (Post 1831389)
If there were more money to be made by the majors flying these airplanes, you can bet your life they would be doing it. Majors flying these airplanes is a regional pilots wet dream, as it would be a quicker route to getting hired by a major.

I absolutely agree. Given an endless supply of cheap labor, they have no reason to change. In an environment where entry-level people are looking for incentives beyond "They offered me a job!" to pick a regional to work for, a little creativity might be in order.


Originally Posted by CBreezy (Post 1831395)
Delta's net income for 2014 was only 1.7% of total Revenue. So, does that mean they should close those doors too?

You've missed the entire point. The point was regarding low profit margins as they're correlated to how much revenue a smaller aircraft can generate, when compared against the costs of erroneous management teams at companies that don't really need to exist.... not about the low profit margin of the airline industry in general.

Swedish Blender 02-24-2015 03:36 PM


Originally Posted by pete2800 (Post 1831380)
You'd lose out on the hourly rate for the crews, but considering it would most likely go very junior, once a pilot had adequate seniority, they'd bid over to an existing airframe... so the years on the payscale past the first few would likely be unused.

You left out quite a bit.

Mainline benefits
Mainline FAs
Mainline mechanics
Mainline tampers
Mainline ground support

Many years ago, AMR offered the APA the CRJ-700s that were going to Eagle if they could make it cost neutral. The pilots could, but they couldn't get the rest of he above mentioned groups to.

FloridaLarry 02-24-2015 03:37 PM

Scope is a mouthwash.

Legacy execs take a swig, gargle, rinse and spit it out.

It then contains germs.

horrido27 02-24-2015 04:08 PM


Originally Posted by EV120 (Post 1831062)
E-170 was a mainline plane(Mid-Atlantic)before Airways sold them off.

Mainline pilots have a bad history of selling scope for preservation

The "New American" just got their contract. Looks like the MRJ is outside the scope.. Thank God!
But now comes Delta.
Will Delta Management want something to keep Profit Sharing for the pilots?
Will they ask/demand for the MRj to be flown with 88 seats total (giving it a Business First/EconPlus/Economy seating) at the regionals?

Time will tell. Delta is the next showdown~
BUT
Don't rule out the "other" players. Virgin America? JetBlue? Alaska?

On a side note-
That plane was built by Asians for Asians. Can't wait to see how Americans and The West fits into it!

Motch

NineGturn 02-24-2015 04:22 PM


Originally Posted by pete2800 (Post 1831359)
...A mainline aircraft is just that. An aircraft operated by mainline. At present, the smallest of which seems to be the 737/319/E190/MD80 types. The moment a mainline carrier buys a new type, it's a mainline aircraft. What we have at present is a bunch of mainline routes being flown by regional pilots in aircraft operated by regionals. There's nothing preventing a mainline carrier from purchasing some E175's or CRJ's and operating them with mainline pilots.

You do know who's actually buying these planes right? They are mainline planes being flown by regional pilots.

The regional airline system is a massive B scale for the mainlines. The more they can get away with it the more they will push it.


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