MONKEY
Well-known member
- Joined
- Nov 27, 2002
- Posts
- 150
Disclaimer: I know the following is very oversimplified, but the point is still valid. There are some variables that are not mentioned in my post. I am not advocating this. This is just were I believe the regional industry is headed.
In the short term we will see a lot of consolidation, much more so than at the majors. There will in the end be relatively few players. The ones that will last will most likely be Republic, Mesa, and SkyWest. Wholly owned subsidiaries will also survive i.e. American Eagle and the likes. You will also see a small number of niche market regionals such as great lakes.
What does this mean in the short term? There will be a lot of fighting between pilot groups. Smaller regionals will be bought up by larger ones. Flying will be taken away from one group and given to another. Management will ask for pay cuts to be able to compete. It will get ugly.
Once this consolidation takes place there will be fewer pilot groups to work against each other. In addition to this, the economies of scale will limit the number of start up regionals who can come in and under cut pay scales. Once the flying is limited to a small handful of players, each pilot group will be better able to negotiate their pay scales.
It sucks that so much has to be lost in order for pay scales to improve.
In the short term we will see a lot of consolidation, much more so than at the majors. There will in the end be relatively few players. The ones that will last will most likely be Republic, Mesa, and SkyWest. Wholly owned subsidiaries will also survive i.e. American Eagle and the likes. You will also see a small number of niche market regionals such as great lakes.
What does this mean in the short term? There will be a lot of fighting between pilot groups. Smaller regionals will be bought up by larger ones. Flying will be taken away from one group and given to another. Management will ask for pay cuts to be able to compete. It will get ugly.
Once this consolidation takes place there will be fewer pilot groups to work against each other. In addition to this, the economies of scale will limit the number of start up regionals who can come in and under cut pay scales. Once the flying is limited to a small handful of players, each pilot group will be better able to negotiate their pay scales.
It sucks that so much has to be lost in order for pay scales to improve.
