Tim47SIP
Serving for the USofA
- Joined
- Dec 5, 2001
- Posts
- 1,157
Enigma wrote "The economies of scale advantages enjoyed by larger aircraft will enable them to remain in the fleet. As near as I can tell, an RJ sized jet costs about 75% more per seat mile to fly than does a narrowbody airliner like the 737."
I dont really think that the cost is 75% higher in PSM, but it is higher. It is not high enough to not make a fairly good profit. If the 73 was 75% more cost efficient, we would be flying allot more of them even taking in to consideration the high cost of mainline labor.
I personnaly think that some of the mainline contracts have created a comodity that has become to high of a cost to keep arround. Although the mainline guys continue to blame the WO for taking their flying, the real culprits here are the Jet Blue's, Air Trans, and SW's of the industry. As long as they are arround, the big 5 have to compete at those costs. All I can see in the future is Delta, CO, AA, and NW emerging but much leaner. They will continue with current fleets, but add additional smaller aircraft to their compliment. Contract negotiations will be very intense as ALPA tries to hang on to that last thread of hope (to preserve the industry) while the industry has made a 180 around them. As stated above, the big ones that are left will utilize any AC they need to on any route without scope restrictions on size and who flys them. I think you will eventually see one lists come about with the majors and WO's. I dont think the Mesa's, ACA's and Skywest's of the industry will die as there will be a demand for contract carriers. Additionally, I dont think (other than CO Ex) you will see alot of spin offs after contracts change for the betterment of management. I also see ALPA fighting to the death about this issue to the point that they are no longer. Hopefully, that wont happen, but people also said Pan Am would never die.
I dont really think that the cost is 75% higher in PSM, but it is higher. It is not high enough to not make a fairly good profit. If the 73 was 75% more cost efficient, we would be flying allot more of them even taking in to consideration the high cost of mainline labor.
I personnaly think that some of the mainline contracts have created a comodity that has become to high of a cost to keep arround. Although the mainline guys continue to blame the WO for taking their flying, the real culprits here are the Jet Blue's, Air Trans, and SW's of the industry. As long as they are arround, the big 5 have to compete at those costs. All I can see in the future is Delta, CO, AA, and NW emerging but much leaner. They will continue with current fleets, but add additional smaller aircraft to their compliment. Contract negotiations will be very intense as ALPA tries to hang on to that last thread of hope (to preserve the industry) while the industry has made a 180 around them. As stated above, the big ones that are left will utilize any AC they need to on any route without scope restrictions on size and who flys them. I think you will eventually see one lists come about with the majors and WO's. I dont think the Mesa's, ACA's and Skywest's of the industry will die as there will be a demand for contract carriers. Additionally, I dont think (other than CO Ex) you will see alot of spin offs after contracts change for the betterment of management. I also see ALPA fighting to the death about this issue to the point that they are no longer. Hopefully, that wont happen, but people also said Pan Am would never die.