Major intentions for regionals

[wms]

I posted this on another thread, but maybe it needs a thread of its own.

Since the majors have been making lots of money and have been sharing the wealth with employees, expanding ammenities and paying vendors more, it seems strange they haven't shared the wealth with the regionals but are continuing the downward pressure on them. I wonder why?

Maybe to expedite the thinning of the herd, or drive value of the regionals down to buy them cheap later, or an attritional way to get rid of 50-seaters. Nonetheless, the regionals that survive will have pricing power eventually, but not very soon unless failures happen quickly.

 

[king10pin02]

Why would they care about the regionals or simply pay them more? Would a grocery store pay its coke vendor more simply because it had a good year? Of course not, no business would voluntarily increase its own cost.

 

[asayankee]

They would if the coke distributor wasn't able to reliably deliver product to the grocer. I specifically avoid shopping at Kroger because they don't always have some of the products I like.

 

[General Lee]

Luckily there will be 15,000 job openings over the next decade at the 3 legacies. I understand not everyone wants to move on to a legacy, and if that is the case, you would have to realize what us happening in the Regional industry. More than half of your planes, the 50 seaters, do not make money. That is problematic. And, when there are profits (thanks to Consolidation and bag and change fees) there are fewer scope concessions by mainline groups. So, the Regional side is shrinking, and lower wages there haven't produced any replacement pilots either. Not a good sign.

My advice again, apply to the Legacies first, and then LCCs if you don't have PIC time. Get away from the shrinking side of the industry. That might mean starting over, but better contracts at the legacies mean regaining current pay and better faster.



Bye Bye---General Lee

 

[Jetjockey]

It is just part of the reality of being the worker for a lower cost, outsource provider.

 

[Mercyful Fate]

Luckily there will be 15,000 job openings over the next decade at the 3 legacies. I understand not everyone wants to move on to a legacy, and if that is the case, you would have to realize what us happening in the Regional industry. More than half of your planes, the 50 seaters, do not make money. That is problematic. And, when there are profits (thanks to Consolidation and bag and change fees) there are fewer scope concessions by mainline groups. So, the Regional side is shrinking, and lower wages there haven't produced any replacement pilots either. Not a good sign.

My advice again, apply to the Legacies first, and then LCCs if you don't have PIC time. Get away from the shrinking side of the industry. That might mean starting over, but better contracts at the legacies mean regaining current pay and better faster.



Bye Bye---General Lee

Holy sh*t, you are a broken record!!!

 

[chqflyer]

I posted this on another thread, but maybe it needs a thread of its own.



Since the majors have been making lots of money and have been sharing the wealth with employees, expanding ammenities and paying vendors more, it seems strange they haven't shared the wealth with the regionals but are continuing the downward pressure on them. I wonder why?



Maybe to expedite the thinning of the herd, or drive value of the regionals down to buy them cheap later, or an attritional way to get rid of 50-seaters. Nonetheless, the regionals that survive will have pricing power eventually, but not very soon unless failures happen quickly.

They are under no obligation whatsoever to do so.

 

[chqflyer]

Holy sh*t, you are a broken record!!!

Maybe so, but I believe this post to be accurate. The regionals are gonna shrink. It's an absolute certainty. Anyone with the with the chance to move onto a major really should do so without a second thought. The folks choosing to gamble and stay at the regionals are most likely going to be in for a world of hurt as planes go to the desert and lifers get downgraded back to the right seat.

 

[wms]

They are under no obligation whatsoever to do so.

I understand that. I'm just wondering what ml's intentions for the regionals are. Eventually there will be fewer regionals, just like pilots and either cpas will increase in value or ml will absorb them.

I'm not planning to stay here, but as someone who is interested in how business works, am just wondering how the industry will evolve as supply and demand change.

 

[Mickey Mouse]

I posted this on another thread, but maybe it needs a thread of its own.

Since the majors have been making lots of money and have been sharing the wealth with employees, expanding ammenities and paying vendors more, it seems strange they haven't shared the wealth with the regionals but are continuing the downward pressure on them. I wonder why?

Maybe to expedite the thinning of the herd, or drive value of the regionals down to buy them cheap later, or an attritional way to get rid of 50-seaters. Nonetheless, the regionals that survive will have pricing power eventually, but not very soon unless failures happen quickly.

It's a fair question. I suspect it's the same reason that we buy virtually everything from China. It's cheaper. We don't think about the 11 year old children working in a town 70 miles from Beijing, making sneakers, watches, purses, furniture, pot and pans, carpet, clothing, car parts, tools, washing machines, and etc. They work 14 hour days and live in housing on the factory property. The workers have no voice. They have no power. We are slightly different; we have the power of our vote and our solidarity. It is real, and it was recently exercised. We just gotta keep gettin' in their faces. Gettin' real close, right up in their Goddamn faces.