GogglesPisano
Pawn, in game of life
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Pinnacle CEO calls for end of scope clauses
Dateline: Wednesday March 24, 2004
Pinnacle Airlines CEO Phil Trenary called for major reform of the so-called scope clauses that limit the contract flying of regional aircraft by partners of Major airlines, saying they stand in the way of an airline's choosing the right-size aircraft for the marketplace.
"Scope hurts both Regionals and Majors," Trenary said in Washington yesterday. "Scope helps no one." In wide-ranging remarks, he also objected to the opinion expressed by some that regional jets are crowding the nation's skies and airports. He pointed out that RJs have allowed Majors to expand into new markets that otherwise would receive no air service and to add frequencies in existing markets.
Trenary suggested that Regionals will play an even greater role as network carriers continue to evolve. "We should thank God for the Regional airlines and what they have done for the industry."
Additionally, he said the hub-and-spoke system is alive and well despite the rise in low-cost carriers that provide point-to-point service in the US, and Majors continue to play a significant role. "It's the most efficient way to distribute seats, so the network carriers will be around a long time," he said. But pre-2002 yields will not return, so legacy airlines must work to bring their costs in line with LCCs such as Southwest Airlines and JetBlue and to improve employee productivity, he added.
Pinnacle, formerly known as Express Airlines I, is an Airlink partner of Northwest Airlines and operates a fleet of some 80 CRJs.--Sandra Arnoult
Dateline: Wednesday March 24, 2004
Pinnacle Airlines CEO Phil Trenary called for major reform of the so-called scope clauses that limit the contract flying of regional aircraft by partners of Major airlines, saying they stand in the way of an airline's choosing the right-size aircraft for the marketplace.
"Scope hurts both Regionals and Majors," Trenary said in Washington yesterday. "Scope helps no one." In wide-ranging remarks, he also objected to the opinion expressed by some that regional jets are crowding the nation's skies and airports. He pointed out that RJs have allowed Majors to expand into new markets that otherwise would receive no air service and to add frequencies in existing markets.
Trenary suggested that Regionals will play an even greater role as network carriers continue to evolve. "We should thank God for the Regional airlines and what they have done for the industry."
Additionally, he said the hub-and-spoke system is alive and well despite the rise in low-cost carriers that provide point-to-point service in the US, and Majors continue to play a significant role. "It's the most efficient way to distribute seats, so the network carriers will be around a long time," he said. But pre-2002 yields will not return, so legacy airlines must work to bring their costs in line with LCCs such as Southwest Airlines and JetBlue and to improve employee productivity, he added.
Pinnacle, formerly known as Express Airlines I, is an Airlink partner of Northwest Airlines and operates a fleet of some 80 CRJs.--Sandra Arnoult
