How do you think these domestic cutbacks will affect the regionals?

[Eric]

UAL Corp. (UAUA 8.70, +0.17), parent of United Airlines, said that it will remove a total of 100 aircraft from its mainline fleet, including the 30 previously announced Boeing 737s, and reduce its mainline domestic capacity in the fourth quarter 2008 by 14 percent year-over-year. The moves come in response to rising fuel costs.
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As United reduces the size of its operation, it is further reducing staff. United expects to reduce the number of salaried and management employees and contractors by 1,400-1,600, including the previously announced 500 employee reduction by year-end, and the company will determine the number of front-line employee furloughs as it finalizes the schedule over the next month.
Additionally, United indicated it would eliminate Ted, its domestic leisure product, and reconfigure that fleet's coach class planes to include first class seats.
Airlines have been hit hard by rising fuel prices and a slowing U.S. economy. Recently, AMR Corp. (AMR 7.30, -0.02), parent of American Airlines, announced significant reductions to its 2008 domestic flight schedule. Delta Air Lines (DAL 6.19, +0.09) and Northwest Airlines (NWA 7.18, +0.11) posted huge losses in their most recent quarter and announced a merger agreement in mid-April aimed at producing what they called "revenue and cost synergies."

 

[Secret Squirrel]

The report shows a significant gain in regional flying.

North America -14.5% to -13.5% -8.0% to -7.0% -18.0% to -17.0%

International -4.5% to -3.5% +1.5% to +2.5% -5.0% to -4.0%

Mainline -10.5% to -9.5% -4.0% to -3.0% -12.5% to -11.5%

Express +3.0% to +4.0% Flat to +1.0% +10.0% to +11.0%

Consolidated Domestic -11.5% to -10.5% -6.5% to -5.5% -13.5% to -12.5%

Consolidated -9.0% to -8.0% -3.5% to -2.5% -10.0% to -9.0%

 

[SkyNation]

more 70 and 90 seaters flying routes previously served by 737s

 

[duck_killer]

more 70 and 90 seaters flying routes previously served by 737s

Unfortunately I think your right.

 

[Buzo]

Nothing over 70 seats for UAX.

 

[blott]

How is their scope clause worded? Tied to the 737's by chance...

B

 

[rickair7777]

How is their scope clause worded? Tied to the 737's by chance...

B

I don't think they had enough horsepower in Ch.11 to get the kind of scope they needed.

I think there are NO mainline/regional one-for-one stipulations.

I also think there are no caps on UAX fleet size.

Basically, they are screwed. Regional lifers are in great shape however.

 

[Flybet3]

Unfortunately I think your right.

It is what it is.

 

[WSurf]

More TurboProp flying for every!!!!!!

 

[Flybet3]

More TurboProp flying for every!!!!!!

It's all good, as long as the checks don't bounce LOL