1) Mainline increase pay to it's regional partners for their feed to hubs
2) Regionals increase FO starting pay to $40-50K & increase min days off to 14
Problem solved.
It only takes an increase of about $3-5 per ticket if you want to pass the cost on to the pax. Heave forbid that it comes out of profits for mainline to retain their regional feed.
There are only 88 717's going to Delta. They came from AirTran so the overall fleet has not increased. I can just see these guys doing ATL-RDU turns all day starting at $68/hr for FO's! Delta's minimum labor cost per hour is $241 on the 717's or $2.06 per seat. If we compare for comparison's sake - say, Compass. If Compass raised starting FO pay to $50/per hour with a guarantee of 75 hours/month. That's $45K. Go up $1 per year and top out at year 4 or 5. Their 1st yr CA & FO labor cost would be $115 or $1.51 per seat for a 76 seater. So, Compass (or any other regional with 76 seats) can raise FO pay and still provide that feed at a 27% savings in wages alone compared to mainline.
We'll see how important the regional feed is to mainline. Regionals, which are basically staffing companies, exist because they provided a cheaper alternative to mainline flying the same feed routes. There has to be a savings for the regional model to exist. But if you can't attract the thousands of currently qualified ATP's out there then the ability to provide the service shrinks. If there are fewer little planes to bring people to the big planes then what? The law of supply and demand would have it that the price goes up for the little planes or find an alternative method. Hmmm.....
Now what?
Somewhere in the framework of supply and demand a business's share/investors will need to feel comfortable making a profit. The airline business is a risky business. The more risk is taken, the larger the reward or why be involve. If the business model isn't working and its clearly not then nothing left to do but cease to exist. Businesses make these types of decisions each and everyday. Airlines are no different!