I.P. Freley said:
>>>Make concessions or the growth will go to Shuttle America.<<<
Are you seriously suggesting that your management used Shuttle America as the threat if you don't take concessions?
Or are we just your whipping boy to make your point?
Think man, that was just a hypothetical. My management (Comair) has no flying to subcontract and can't make deals with anyone. On the other hand Delta does and if you don't think they will use SA against you, you're dreaming. You should consider the following.
1. Delta will now take proposals from anyone that chooses to "bid" on the flying that it doesn't want to give Comair (because we didn't take concessions to get it). Why do you think Delta "gave" a bunch of flying to TSA in New England a few years back? Answer, to depress the value of CMR stock. Then they "gave" some more flying to ACA to further depress the value of CMR stock. Then the bought Comair, saving over $10 a share.
Delta is changing its business plan to emulate other legacy carriers. They are evolving from an airline, to a ticket distribution company. They will buy the seats wherever they can get them for the lowest price, and resell them for a profit, just as the other big "airline companies" are doing. They don't care if they run an airline of if they own airplanes or how many they own. What they sell is seats. It's quite similar to Carl Ichan's "deal" that eventually buried TWA but made him rich.
2. Chautauqua will undoubtedly be "one of the bidders". There is a good chance that Bedford will ask YOU for concessions so that CHQ can make the lowest bid for more Delta seats. If you say no, the games will begin and they will play you just like they are trying to play Comair, except it will be much easier.
3. I know you all think you "got rid of Republic". That's great and I applaud your effort, but you seem to have overlooked something.
Republic is owned by Republic Holdings. Republic Holdings is in turn owned by Wexford. Wexford also owns Shuttle America, Republic and Chautauqua. If you really think your deal at CHQ got rid of the whipsaw problem at Wexford, think again. CHQ and SA are not on the same list and they have different contracts. Just because you have "jets" and SA does not, you think you're home free. Well, it was only yesterday that CHQ didn't have jets either and nobody knew where that name came from or who it was. The same can happen to SA. If they can "low bid" to get 80 jets, where do you think that will leave YOU?
When Delta puts that flying up for bid, there is nothing to prevent Shuttle America from bidding on it. When they under bid CHQ, you will lose the flying you underbid Comair to get. If they get the bid, then they will play CHQ against SA not only for that flying, but for the rest of your flying as well. If you don't concede, the flying will go to them, as the "lowest bidder". Wexford wants the business and they don't care who flys the airplanes. They own all 3 airlines. It's a mini "portfolio", but it's the same game that Delta is playing with its portfolio of DCI carriers, USAG is play with its large group of subcontractors and 4 subsidiaries, AMR is playing by owning Eagle and playing them against CHQ and TSA and for good measure, American too. Northwest is playing PCL against Mesaba and the pilots at PCL are gloating because "they are getting all the RJs, while they kill Mesaba who has now bought Big Sky to play the other end. CAL has spun off COEX and the new XJT is subcontracting with SKYW and Colgan, while CAL pilots (who couldn't care less what happens at XJT) fill their cockpits with furloughed pilots. I could go on and on, but what's the point. If you don't get it by now, you never will.
It is all part of the game, and management will continue to play it as long as we continue to let them. As soon as one group underbids another group for "growth", there will be somebody else to do the same thing to them. Until we ALL stop this trend, you can count on it continuing.
It won't be long after all the "low bidders" get the new "growth" that they will discover the Big Guy wants to lower their "fee for departure" again, and we'll begin round three. Until you bid so low that you go broke and out of business or you try some desperation move like the ACA LCC or Mesa's attempted hostile takeover of ACA.
You can talk all you want about PFT and it will change nothing related to any of this. The only people really affected by PFT are potential new hires that don't have the money to spend on it, not companies. For the companies it's just another revenue stream. Yes it keeps entry wages lower than they might otherwise be but it is based on activity by individuals. The present situation is the result of entire pilot groups, already employed, "feeling good" about trashing their contract in order to take flying from other pilot groups.
There is some logic when bankrupt major airline pilot groups cut their contracts in an effort to survive. In my opinion, there is no logic at all when groups of pilots working for profitable carriers are willing to gut their contracts, which already offer little, to get more of the same but even lower paying flying from other airlines.
It is indeed a "race to the bottom" and regional pilot groups are doing a great job of helping management to win it. If you think that PFT is worse than that, better think again.