UAL and Regional Consolidation
#1
Thread Starter
Gets Weekends Off
Joined: Jan 2008
Posts: 400
Likes: 0
Be it a long shot and quite unlikely, the recent landscape shift in the regionals can at least be described as interesting. Correct me please but we've seen a resurgence of Eagle via the BK scope the AA folks approved, Delta's shuttering of ComAir and Pinnacle to raise Endeavour from the ashes and Republic reportedly spinning off Frontier towards former Spirit management/money.
This leaves the hangers-on (Mesa, Go Jet etc) plying their low cost wares as they always have to the highest bidder.
The elephant in the room destined to loose some weight (currently fishing 30% pilot cost concessions from Expressjet to "remain competitive") is Skywest.
So, with this rapidly shifting environment does UAL get pushed into the regional business deeper or just farm it to whomever comes in with the lowest costs?
What if Eagle and Endeavour still come in cheaper after concessions and race to the bottom by the surviving non airline owned regionals?
This leaves the hangers-on (Mesa, Go Jet etc) plying their low cost wares as they always have to the highest bidder.
The elephant in the room destined to loose some weight (currently fishing 30% pilot cost concessions from Expressjet to "remain competitive") is Skywest.
So, with this rapidly shifting environment does UAL get pushed into the regional business deeper or just farm it to whomever comes in with the lowest costs?
What if Eagle and Endeavour still come in cheaper after concessions and race to the bottom by the surviving non airline owned regionals?
#2
Line Holder
Joined: Mar 2009
Posts: 46
Likes: 0
IMO consolidation of our regional feed would be a huge step in the right direction in terms of improving our operational performance. There is going to be regional consolidation naturally as a result of fewer airframes (eventual retiring of 50 seaters and introduction of larger rjs).
Unfortunately our management seems obsessed with cost reductions at the expense of our overall product. So expect more of the same race to the bottom pitting of regional against regional (see current XJT concessions chessmatch).
Unfortunately our management seems obsessed with cost reductions at the expense of our overall product. So expect more of the same race to the bottom pitting of regional against regional (see current XJT concessions chessmatch).
#3
#6
the LCAL union rep said the other week at the ALPA meeting in IAH that because of DAL's new regional cap and increase in 70 seat flying, UAL had no choice but go in DAL's direction. If UAL doesn't, they claim we aren't as competitive, and will loose too much money. I bet more consolidation in 50's (duh) and some sort of overall cap in 70 seaters, however, should UAL hit hard times and shed airframes, there is an equal reduction in regional airframes as well. That way the regional flying doesn't put UAL guys on the street, like last time...
#7
the LCAL union rep said the other week at the ALPA meeting in IAH that because of DAL's new regional cap and increase in 70 seat flying, UAL had no choice but go in DAL's direction. If UAL doesn't, they claim we aren't as competitive, and will loose too much money. I bet more consolidation in 50's (duh) and some sort of overall cap in 70 seaters, however, should UAL hit hard times and shed airframes, there is an equal reduction in regional airframes as well. That way the regional flying doesn't put UAL guys on the street, like last time...
#8
Nobody in this thread is addressing UAX feeder issues in the context of the UPA that was signed last Dec. The report linked above suggesting 90 seat scope was produced in 2009, and guess what, 90 seat scope didn't happen.
UPA section one is a good read.
#9
The United Pilot Agreement capped the number of airframes, and the size, that UAX feeders can operate so actually they've done their part. Regional pilots now need to step-up and stop accepting poverty wages and conditions.
Nobody in this thread is addressing UAX feeder issues in the context of the UPA that was signed last Dec. The report linked above suggesting 90 seat scope was produced in 2009, and guess what, 90 seat scope didn't happen.
UPA section one is a good read.
Nobody in this thread is addressing UAX feeder issues in the context of the UPA that was signed last Dec. The report linked above suggesting 90 seat scope was produced in 2009, and guess what, 90 seat scope didn't happen.
UPA section one is a good read.
What is interesting too is how slow DAL and UAL have signed these new deals. True some 50 seaters are still tied up in flight deals but how many available 70+ seaters are available to be assigned.
Meaning it almost makes me believe that the companies know that finding pilots to fly them (for current wages) might be a challenge. That could be an opportunity for the mainline carriers. What carrier Skywest, Republic or others can actually provide the feed if the pilot pool is shrinking.
#10
That is absolutely incorrect. The person suggesting 90 seats was Jim Parker, an analyst, and was the basis for the counter argument which the study provided. The study argues that mainline pilots will fight to fly 75-100 seat planes, and that is where the growth will come in Regional flying in the coming decade. What you sighted was the first page quote used as a counter point to start the slide show produced by William Swelbar.


Thread
Thread Starter
Forum
Replies
Last Post



