Sounds like the future of the Regionals to change drastically at United?


Pulled From 23 April 1015 Earnings Release,

Fleet Updates
Today, UAL announced refinements to its fleet plan, which will allow the company to achieve longer-term network needs without increasing its outlook for capacity or gross capital expenditures over the next several years. These adjustments will accelerate the company's network initiatives as it transitions flying into the mainline operation from the regional operation, increases average gauge and reduces reliance on 50-seat aircraft. As part of this effort, the company will:

• Complete the removal of more than 130 50-seat aircraft from its schedule by the end of 2015. UAL will remove additional 50-seat aircraft in 2016 and beyond as aircraft come off lease.
• Exchange 10 787 orders with Boeing for 10 777-300ERs for delivery beginning in 2016. The new 777-300ER aircraft will provide attractive upgauge and range opportunities to the company at competitive economics.
• Extend the life of 11 additional 767-300ER aircraft. The company now plans to extend the life of all 21 767-300ER through investments in winglets, reliability improvements and interior modifications, which will improve financial performance and make the aircraft more customer pleasing.
• Reconfigure and transition 10 777-200 aircraft currently used in international markets into the domestic network, and position a number of its trans-Atlantic 757-200 fleet into the domestic and Latin markets, with the extension of the 767-300ER aircraft.
• Acquire additional used narrowbody aircraft. The company is in final negotiations regarding the lease of 10 to 20 used narrowbody aircraft for delivery over the next few years. In addition, the company plans to continue to seek other opportunities to acquire used aircraft to meet its needs as market conditions allow.

These changes will not impact the company's current 2015 capacity guidance, and are consistent with the company's focus on capacity discipline, and will not alter the company's current gross annual capital expenditure guidance of $2.7 billion to $2.9 billion over the next three to four years.

 

They can't staff the flying they have, people don't want to go get paid $20-30k a year after spending $100k+ for flight training or having to be a cfi for years on end with few students in the pipeline. The 1500 hour rule really hurt the regionals being able to get young pilots.

When I was at my regional I was the 2nd highest time in my class with something like 1700 hours. Almost everybody else had 500 and under and barely met the multi minimums of something like 50 hours (if that).

United isn't the only one. They are following in the footsteps of delta who started putting mainline jets on short domestic routes once dominated by rjs. Flights as short as ATL-TYS or VPS. Take 2 50 seat rjs out of service and replace it with a 319 or 717.

As they should, it frees up slots, it frees up airspace, you need less pilots overall (but more at mainline), reduced frequency should mean higher fares, equal or increase in ASMs. More first class service to hopefully bring in higher profits margins per flight.

Overall it is a great thing, more control, more regional guys and gals will get on with mainline, dependence on regionals who struggle with staffing and underpay will be reduced, more airframes at mainline and pilots beneath those on the list already provide a comfort level, especially for the twice furloughed united guys.

All good things. And the 756 not doing fuel stops coming back from Europe will be a nice bonus for the passengers as well. I just wish they would keep all the 757 aircraft and streamline the cockpits like the 764.

 

Scope choke might affect RJ's short term, but long term it will be staffing that hurts the regionals the most.

Long term they could open up the green card floodgates and hire foreigners, but no foreigner is going to take a pay cut to fly for a regional. They would come to a major to get a career here.