Republic- Taking us all down

[kf4amu]

If Republic/Mesa/Colgan pilots demanded what they should get paid for those aircraft, there would be no incentive for Major's to subcontract the flying.

Republic had a 18 percent profit margin...where do you think that came from? The pilots. No wonder they can afford to buy other airlines.

 

[relief tube]

I love people who blame pilot groups and not $29 airfares for the way this industry is.

Do you think mainlines want regionals to be doing their flying? No, they want to make a boatload of money and do the flying themselves. But they can't if they're competing against $29 fares.

To play devil's advocate, I dont even think RAH has a 190 payscale, the contract you're referring to is over 6 years old, and Bedford is the shrewdest MF'er out there, not giving a ******************** if he throws his pilot group to the wolves (us all) just so he can have a larger house. The next to come from there will hopefully help, unlike what I heard of Pinnacle's.

 

[Captain Morgan]

I love people who blame pilot groups and not $29 airfares for the way this industry is.

Do you think mainlines want regionals to be doing their flying? No, they want to make a boatload of money and do the flying themselves. But they can't if they're competing against $29 fares.

To play devil's advocate, I dont even think RAH has a 190 payscale, the contract you're referring to is over 6 years old, and Bedford is the shrewdest MF'er out there, not giving a ******************** if he throws his pilot group to the wolves (us all) just so he can have a larger house. The next to come from there will hopefully help, unlike what I heard of Pinnacle's.

And don't forget a 10th kid...

 

[ALPO]

If Republic/Mesa/Colgan pilots demanded what they should get paid for those aircraft, there would be no incentive for Major's to subcontract the flying.

Republic had a 18 percent profit margin...where do you think that came from? The pilots. No wonder they can afford to buy other airlines.

Believe it or not regionals do not make money for the major, they are a cost. I’ve been in management and seen the numbers. Regionals cost about 20% average more seat cost. So why do they do it? The same reason an airline making money with paid for aircraft goes out and leases expensive brand new planes. EXOs are corrupt, they get kick backs on leasing company’s and aircraft company’s and yes from the regionals they do business with. They really don't care about profit, they play with the numbers and explain it to stockholders that they're more fuel efficient, frequency, bla bla bla lie lie lie. Also it's a union-busting tool that has been working great. What do they do when profits get to low? They park the the planes that are paid for and aren't making money (getting kickbacks)off of the leases and lay off employee's. That's why Airlines, like Southwest, that don't have this corruption always flurlish. You'll never see them hire a regional, why do you think AirTran quickly trashed the idea. They're a cost!
I can assure you, it's not pilot pay. A 70 seat pilot making 70k, a 120 seat making 120k, if there is a difference it's hugely minimal. It's economy of scale, if the regional model really was efficient, they would be flying around lear jets with with 4 pax a flight. Remember a 747 still has the highest profit per pax than any other aircraft, although the 777 is very close.

 

[BoilerUP]

The issue is being able to fill a larger aircraft at a high enough per-seat revenue to take advantage of its lower CASM despite its higher cost of ownership & operation.

If the 747 and 777 are so profitable, why don't we see them flying between PHL-ALB? What about popular transcon routes like BOS-LAX?

We can oversimplify the economics as much as we want, but the variables involved (segment length, direct operating cost, maintenance cost, financing & acquisition costs, revenue potential, etc) directly impact the type of airframes put on a given city pair.

 

[UND_Sioux]

Believe it or not regionals do not make money for the major, they are a cost. I’ve been in management and seen the numbers. Regionals cost about 20% average more seat cost. So why do they do it? The same reason an airline making money with paid for aircraft goes out and leases expensive brand new planes. EXOs are corrupt, they get kick backs on leasing company’s and aircraft company’s and yes from the regionals they do business with. They really don't care about profit, they play with the numbers and explain it to stockholders that they're more fuel efficient, frequency, bla bla bla lie lie lie. Also it's a union-busting tool that has been working great. What do they do when profits get to low? They park the the planes that are paid for and aren't making money (getting kickbacks)off of the leases and lay off employee's. That's why Airlines, like Southwest, that don't have this corruption always flurlish. You'll never see them hire a regional, why do you think AirTran quickly trashed the idea. They're a cost!
I can assure you, it's not pilot pay. A 70 seat pilot making 70k, a 120 seat making 120k, if there is a difference it's hugely minimal. It's economy of scale, if the regional model really was efficient, they would be flying around lear jets with with 4 pax a flight. Remember a 747 still has the highest profit per pax than any other aircraft, although the 777 is very close.

Look. Everybody always talks about how outsourcing is or is not more expensive. Most of you guys have no idea what you are talking about. The reason outsourcing is done is not because of the direct operating cost of the pilots, mechanics, etc...

The administrative costs of having an employee on the payroll are high. For each employee you have, you have a proportional number of HR people that deal with benefits etc..; lawyers, workers comp insurance premiums; health insurance premiums; rent on facilities for said employees, IT costs for said employees; and the list goes on and on.

When you subcontract all of the flying to a "vendor", all of those administrative costs go out the door. Remember this: it only takes one accountant to write a check to Skywest, RAH, Air Wisky, Pinnacle, etc..., but it may take hundreds to manage all the extra employees you'd have if those employees were on the mainline payroll.

 

[dooork]

This article will enlighten.
http://www.flightglobal.com/article...w-republic-chief-executive-bryan-bedford.html

 

[B727FA]

And don't forget a 10th kid...

That's the number reason they keep a 135 on the certificate; so they can non-rev somewhere.

 

[B727FA]

The one thing ALPA needs to do first above all else is to get Flight Attendant standards from the 60's back. The 3-G network is working my last nerve.

I'll bet they might have a few things just a smidge more important.

 

[AirBill]

If Republic/Mesa/Colgan pilots demanded what they should get paid for those aircraft, there would be no incentive for Major's to subcontract the flying.

Republic had a 18 percent profit margin...where do you think that came from? The pilots. No wonder they can afford to buy other airlines.

Big words coming from a corporate driver. Ever played the game above the minors?