The Worst Has Yet to Come for Regional Airlines

[mckpickle]

Continental saved 100 million a year by switching to CHQ.......for 69 a/c? YA RIGHT. Maybe in Peso's. Nice article.

 

[Rogue5]

Excited? Nah. It was inevitable.

Bye Bye--General Lee

Hey Jen,

What was inevitable? What exactly has happened?

An analyst posted an article, that is all. In case you haven't noticed, many analysts have pontificated about the ultimate demise of the Legacy airlines, your precious DAL included. You better than anyone else should know, and you have proven time and time again, just writing thoughts and publishing them on the internet does NOT equate to fact or reality...

 

[mynameisjim]

I laugh that the article cites the main reason for the deterioration of Regionals is the lack of spread between legacy and regional pay. They are quoting labor rates at 2 f_ing cents per seat mile and saying that makes or breaks the profitability of a company.

 

[ReverseSensing]

I laugh that the article cites the main reason for the deterioration of Regionals is the lack of spread between legacy and regional pay. They are quoting labor rates at 2 f_ing cents per seat mile and saying that makes or breaks the profitability of a company.

And then it uses SWA as an example of an airline with low cost structures that the legacies will have to achieve. Obviously, labor costs are not the key to profitability: management saying it doesn't make it so.

 

[YourPilotFriend]

I laugh that the article cites the main reason for the deterioration of Regionals is the lack of spread between legacy and regional pay. They are quoting labor rates at 2 f_ing cents per seat mile and saying that makes or breaks the profitability of a company.

Hey those numbers are wrong, the legacy has 2 cents the regional is 4 cents. I'm 100% sure of that; this article is useless.

 

[General Lee]

Hey Jen,

What was inevitable? What exactly has happened?

An analyst posted an article, that is all. In case you haven't noticed, many analysts have pontificated about the ultimate demise of the Legacy airlines, your precious DAL included. You better than anyone else should know, and you have proven time and time again, just writing thoughts and publishing them on the internet does NOT equate to fact or reality...

Hmmm. Got your blinders on? Comair is getting ripped. Mesaba is getting ripped. ASA is getting man handled for costs. Mesa is growing, along with other lost cost regionals. And yeah, I just made all of that up...... It will happen to everyone. IT IS INEVITABLE if you intend to compete and gain new agreements with lagacies. Or, you can go INDY and start out on your own and get smacked by Southwest and others. Not a good choice.

Bye Bye--General Lee

 

[SkyBoy1981]

So let all of it go back to mainline carriers. Thats where it should be anyway.