Boyd on RJ's 30 April 07

[Speedtape]

Heyas CP,

I think you're right. When the market shrinks enough, the majors will turn the tables on the small jet providers in a HUGE way.

They'll turn it into a franchise like deal where if you want to fly with the widget on the tail, the provider will have to pay a fee to the mothership, same as when you buy a Subway, part of that goes to Joel (or whatever the ex-fat guy's name is).

Nu

That day has already come and gone! Skywest paid $450 million for more franchise territory, and to prop up one of the hands that fed them. They had no choice, for at the the time, 40% of their revenues came from the carrier that was the endangered species. Now, with what amounts to Skywest giving the Widget CPR, the Widget lived on to get what amounts to the quad-druple, bypass that it so desparately needed! Without the Skywest cash infusion, there would be no Bankruptcy Exit; the victim would have been DOA! However the infusion was mutually beneficial, and it was a heck of a deal when all things are considered for both parties. Hopefully, all parties will live happily ever after!

 

[eaglefly]

That idiot has been on an RJ rant for years. Flew in one, wasn't happy and takes every opportunity to declare the obvious unprofitability of the 50-seat RJ.

I think his philosophy is that if he keeps saying the same thing every six months, sooner or later (after 5-8 years), it will come true, so he can say, "WA-LA !, SEE I TOLD YOU SO !"

Smart, he's not.

 

[RJAA]

How can one stand a CRJ from TUS-ATL! That is all I have to say.

 

[YourPilotFriend]

What's the definition of an RJ? You know there are A380's that are planned regional jets.

 

[Occam's Razor]

What's the definition of an RJ? You know there are A380's that are planned regional jets.

Let that be a lesson to you, boys and girls!

Read and follow all medication label instructions...or you could end up like Mr. Rainey here!

 

[DiverDriver]

I love the puddle jumper comment when people get on. Yah, it's a puddle jumper. If you consider the Great Lakes (all of them) puddles.

 

[BoilerUP]

I love the puddle jumper comment when people get on. Yah, it's a puddle jumper. If you consider the Great Lakes (all of them) puddles.

Had a little girl screaming down the jetbridge the other day "I'M GONNA DIE, THAT AIRPLANE IS TOO SMALL, I DON'T WANNA DIE!!!" Her poor father looked so sheepishly at us, all we could do was laugh.

When an RJ is too small for a 6 year old girl of all people, you know there is a problem...

 

[RJAA]

and of course the majority of this country's people would have problems fitting into that forward lav on a CRJ700.

 

[acarpe3448]

Had a little girl screaming down the jetbridge the other day "I'M GONNA DIE, THAT AIRPLANE IS TOO SMALL, I DON'T WANNA DIE!!!" Her poor father looked so sheepishly at us, all we could do was laugh.

When an RJ is too small for a 6 year old girl of all people, you know there is a problem...

Was she getting on a Comair flight?

 

[crjdxr]

Oh that's bad form.

 

[JonnyKnoxville]

Was she getting on a Comair flight?

Very classy...I forgot that your airline has a perfect record doesn't it.

 

[Morning Wood]

A metaphor such as the F terminal at ORD being: The fall of Saigon re-enactment?

Yeah he has used that one a lot, but the first time I heard it I thought it was pretty funny.

 

[Bako Cap]

Actually, pay to play is not a new concept. Sorry Boyd, you're still lacking any insight by rehashing the obvious. The regional industry used to be all code-share not fee-for-departure. The regionals were only paid for the seats that were sold. Jerry Atkin was a pioneer in the fee-for-departure when he inked a deal with Delta to actually make a profit on the CRJ back in '95-'96. Delta wanted the CRJ to fly routes but didn't have the loads to allow SkyWest to break even. Fee-for-departure became an industry standard when every other airline wanted to dump their props for "All jet" service and still turn a profit back when there was not many 50 seat jets in service or being built. Ask anyone who knows about United being a "Black Widow", they used to control the profit margins of their partners on a daily basis to keep a regional in check or destroy them. Competition is going to get fierce in the next couple of years. However, I don't believe that will affect us too much as pilots. With the "qualified" pilot shortage, airlines will buyout competitors, not for physical assets, but for their pilots/mechanics and other trained labor

 

[~~~^~~~]

Good post!

Jerry Atkin was a pioneer in the fee-for-departure when he inked a deal with Delta to actually make a profit on the CRJ back in '95-'96. Delta wanted the CRJ to fly routes but didn't have the loads to allow SkyWest to break even.

Delta is very smart about using the RJ's to get the passengers in their 757's and 767's to make a profit. Delta looks at more than just the DCI part of the customer's trip - they analyze the margins.

Competition is going to get fierce in the next couple of years. However, I don't believe that will affect us too much as pilots. With the "qualified" pilot shortage, airlines will buyout competitors, not for physical assets, but for their pilots/mechanics and other trained labor

I hope you are right, but history tells a different story. In almost every previous buy out management has wanted to re-staff with new hires and usually the incumbant pilots are willing to even sign concessionary "B scales" on flying that they know they will never have to perform. The only reason pilots got integrated in the past was because of ALPA.

Without ALPA - jeesh - welcome to the street.

When the regional consolidation starts I don't think it will be good for anyone except for managers who are adept at making deals and moving on. These days regionals WANT employees to move on so they can operate with low cost new hires. The days where airlines wanted you for a career are over - apparently training expenses are not the consideration they once were.

 

[Bako Cap]

I've got my fingers crossed because I'm a glass half full kind of guy.