Regionals after Iraq war

[Be200pilot]

If the Iraq war is delt with quickly and effectively, do you think the regional industry will grow even faster than it is now? Hopefully air traffic will increase substantially after it's over and some current non-hiring regionals will pick it up again. What do you guys think?

 

[canadflyau]

I hope we see the resurgence of the Majors.. hopefully they will grow and need more feed, rather than getting more SJ's put on mainline routes... hopefully there will be more people wanting to get out and travel than the little jets on the routes can hold.

If history repeats itself, yes post war should be good for the airlines!

 

[azpilot]

Don't forget about the endless list of other countries we may have to deal with:

N Korea
Iran
Syria
etc, etc

Things may be bad for quite some time. The public needs to deal with the sad fact that terrosism can and will happen again. Live your lives and don't fall prey to these a-holes.

 

[greyhound]

As Allen Greenspan said, all we need to turn this economy around is the crisis in the middle east to be resolved. People are not afraid because of terrorism as much as they are afraid about the economic consequences of going to war.
Corporations (most) are STILL making some money, they just aren't making what they would like, so they feel they are loosing money.BS.
I don't know about anybodys else's company, but here at my transportation company, I'm packing the bus up everyday, and this company still cries.
I'm almost sure that most of you guys/gals are pulling about a 65-70% load factor (maybe even higher)on most of your trips. If after cut-backs and lay-offs, airlines aren't staying away from the red ink, then they are very poorly managed.
Unfortunately, pilots are some of the first to get screwed/blamed
("Oh you make too much"," oh, we can't pay you during training")
So once fears from war get past us, companies will be willing to invest,(Buy more A/C, start new routes).
The public will also feel more secure about their job stability,and be willing to go on that trip they have been holding out on.
A new president would be nice too.
Post war airline industry will be more RJ jobs at about 45-75K per year, less 767/757 jobs at 150k per year. So all the regional pilots need to think about how they want to live in the longer term in case you aren't lucky enough to get one of those positions that are fewer everyday.
It will get better,

 

[jarhead]

Question......if public companies are making money, why are so many laying off employees, closing their doors and going bankrupt, and the stock market has been in steady decline for 3 straight years? Just wondering what color the sky is on the planet you live on.

 

[d.fitz]

From where I see it

Here's my perspective as a layed off pilot from Cessna Aircraft. The company just announced record earnings!! Kind of frustrating until you look ahead a year and see that the customer base has dried up - so, unfortunately for me, it was kind-of a pre-emptive measure to maintain their cash reserve. Which, incidentally, is what the American public is doing also (hording cash). Hence the worsening economy and bad stock market... IMHO... I think what was posted pertaining to Alan Greenspan's comments were pretty much spot on.

 

[I.P. Freley]

"hording cash"??

Most people l know (and no I don't mean pilots) aren't hoarding cash... They are simply not buying new cars, houses, and jet-skis like they might have five or ten years ago.

But hoarding cash? Hardly. They aren't buying as much on CREDIT as they used to. Don't think that the vast majority of Americans have this cash nest-egg that they are sitting on, waiting for the Iraqi conflict to resolve itself, that they will then spend on Cessnas and hot tubs. Everyone, and I mean just about EVERYONE is feeling the pinch.

 

[embraerjetpilot]

Hey, you forgot that we are going to have to deal with France too...


**CENSORED** the French... full speed ahead

 

[greyhound]

Jarhead

Jarhead, to answer your question, they have layed- off workers to restore the earnings that they would like to make,or protect what little is being made. The biggest clue in that they are still making "SOME" money, is the fact that they are still in operation. Like in D.Fitz's case, companies are making efforts to maintain their profits.(cut-backs in labor,production etc...
Some people may know someone who isn't holding back on spending and that is actually good,we need more people like that, but I'll bet it is because they don't have a clue as to what is going on in the world.
As for companies going out of business? you ask. I said it before, Poor management.
Stock market? I personally do not invest in the market (YET), so I can't answer that one, but it will also do a lot better when things turn around.
Finally Jarhead, keep it professional on this board, please don't try to offend,it doesn't work and it only reflects bad on you. Is that how you are going to talk to yor fellow crewmembers in the future?

 

[jarhead]

Greyhound:

First. let me apologize for the offensive comment made by me as to the color of the sky on your planet. It was a cheap shot, and I regret doing it. I will be more proper in the future.

Second, I will never have a crew member to talk to...I am 62 years old, and my flying days (private) are over. I do have a son who is a captain on a 121 carrier, thus my interest in this site.

Back to the topic.

Load factors are not the only indicator as to the financial well being of an airline. You could have an aircraft 100% full of paying pax, and no non-revs, but if the price of the ticket was so low that it would not cover the cost of fuel, leases, gate fees, labor, etc. it can still be losing money. The reason a carrier still flies a route at a loss, is that it can lose even more by parking the aircraft. Do not let a load factor indication be the only basis for determining the health of a carrier.

As to the stock market. The reason it is in such bad shape, is that corporate earnings have really taken it on the chin. The p/e ratios are still way too high, and until earnings increase in corporate America, it will not come back to the boom-boom times of the late 90's. It is the responsibility of corporate management to maximize corpotate profits.....that is their job.....to make money for stockholders. If a person feels that a company is making too much money, why not buy some of that stock instead of complaining about why wages are so low? sound fair?