Flying Gets Rough on Regional Airlines

[jayme]

Even if it's true, that has NO bearing on ticket prices. Strickly supply and demand.

 

[flyer172r]

Even if it's true, that has NO bearing on ticket prices. Strickly supply and demand.

Well if lower operating costs don't mean lower ticket prices, then flying airplanes where it's cheaper (which would be mainline according to YPF), at the same ticket prices at before would mean an increased profit margin for the airline. Or, if operating costs do mean lower ticket prices, then flying them at mainline would mean lower fares and most likely increased passenger loads. Either of those scenarios would be good for the airline.

I'm not really disagreeing with you, I just think lowering your operating costs is a good thing no matter if ticket prices change or not (as long as it isn't done by throwing out labor contracts the company agreed to).

I'm still curious what was used to determine that mainline is cheaper than the regionals.

 

[YourPilotFriend]

I'm still curious what was used to determine that mainline is cheaper than the regionals.

Your kidding right......do you have any idea how much overhead there is at a regional. They are also guaranteed a fixed profit margin. Skywest has made $300 million in operational profit last year. So that's - $300 million + $500 million in other overhead(overinflated rental fee's), including management(which is a big one). In other words if the regionals didn't exist, this career wouldn't be in the toilet. Management just redistributed the cash flows into their pockets instead of your's. If you don't believe me, come be a top manager at NWA; your bonus check has pinnacle airlines printed on the top of it.

 

[flyer172r]

Your kidding right......do you have any idea how much overhead there is at a regional. They are also guaranteed a fixed profit margin. Skywest has made $300 million in operational profit last year. So that's - $300 million + $500 million in other overhead(overinflated rental fee's), including management(which is a big one). In other words if the regionals didn't exist, this career wouldn't be in the toilet. Management just redistributed the cash flows into their pockets instead of your's. If you don't believe me, come be a top manager at NWA; your bonus check has pinnacle airlines printed on the top of it.

Yes I know all about guaranteed profit margins and that regionals waste a lot of money. I was just curious where you were getting your numbers from, no need to go biting my head off.

 

[jayme]

And while you're at it, YPF, maybe you can explain why the mainline pilots threw away scope. The regional industry wouldn't exist if mainline pilots of the past had shown a little backbone.

 

[wms]

Not really -- a nonstop flight has intrinsically more value than one that makes a connection. Is your time worth that price difference?

For a businessman closing a deal, absolutely. For an underpaid pilot taking a vacation, no. That $700 is worth a lot more to me than a few hours in Charlotte, so the latter is what I'd book. But it makes perfect sense for a nonstop to be priced higher than a connection.

I know the price for non-stop is more than a connection. My amazment is the cost of getting from ATL to JAN. Yet, you can go to LA or even Europe for less. In fact, we were running late into CLT and his connection was at risk. It's not a better deal if you don't make it.

 

[CA1900]

I know the price for non-stop is more than a connection. My amazment is the cost of getting from ATL to JAN. Yet, you can go to LA or even Europe for less. In fact, we were running late into CLT and his connection was at risk. It's not a better deal if you don't make it.

Don't try to apply normal logic and business practices to airline pricing or scheduling. You'll just drive yourself mad!

As for the flight in question, I think you'd have to pay me $1600 to go to Jackson, Mississippi!

 

[wms]

There was a special about AA on CNBC a while back. A former CEO was explaining how a posted price is the competitive price for that seat on that flight at that time. They gave some real-world examples of flights to illustrate it. Very interesting. Overall prices have been climbing alot, yet the airlines are not profitable enough to pass it on to the employees. The magic of numbers.