Why Republic will continue to destroy industry

[time builder]

It's all a plan so that when UAL and US Airways go chapter 7, RAH can easily transition those planes to their own operation with little down time.

The words "too big to fail" come to mind.

 

[Tarzan]

If it makes you feel any better, RAH is an Indiana based company, and has hired a large amount of Purdue grads. RAH also has an internship program with Purdue. In terms of "local talent", OSU and Southern Illinois grads often find employment at RAH. Riddle grads are a minority at RAH.

Excuse him. He obviously hasn't learned the term, PURDOOSHBAG.

 

[Anonymous2]

Everything began unraveling with Deregulation in 1978. When airlines were forced to truly compete, the downward pressures of unregulated capitalism tore apart the industry. Fares went down, leading to a spiral of cost savings measures. Also, excessive competition into markets (6 airlines flying the same city pair) led to changes in business practices that were geared at strictly gaining market share from a competitor. Flight frequency increased, reducing loads on a particular flight. Frequent fliers were given the world. More gas was burned, and more airframes purchased. In the mid 90's, the threshold of profitability was crossed. There were too many flights, too many planes, and too many competitors. Just about that time, the RJ was born, fulfilling the need of keeping up a frequent schedule, but burning less overall gas and carrying less passengers. Props were getting older at this time too, and passengers still expected the world. They wanted a jet everywhere they went. Gas was still cheap. Here come the RJ's. The mainline unions, for reasons I don't know, decided to let these 50 and fewer seat jets be flown under contract by the regional airlines. At the time, they were given to the "best" regionals of the day : ComAir, Eagle, etc. Once the major airlines were satisfied the smaller outfits could operate the RJ's in an acceptable manner, they began offering jets to a wider range of regional operators. Contracts began small, but the effects of deregulation were really beginning to catch up to the major airlines. The economic faults began to appear before 9/11/01, but the actual stoppage of flight for a few weeks showed how weak every airline was. In times of desperation, more RJ flying was created and farmed out, and major airlines tried to trim fat anyway they could.

But, it all goes back to deregulation. Airlines historically have not been highly profitable ventures. The profit margins have averaged around 1-2%. Most every other industry would consider that a failure. A little downward pressure on air fares was all it took to erode this industry. Unions were put on the defensive, and soon the in-fighting began. Strikes produced scabs, dissent fractured ALPA, and regional vs. mainline ate away at unity from both sides.

But that is just my opinion.

Minimaniac, thanks for taking the time to elaborate on the situation. Its very interesting that, in what seems like a short period of time, how things exploded so fast, for the worse. Also, learning from the other posts pertaining to drama exclusivity in the U.S. is very interesting. This is a really sad time for this whole career & industry. I'm sure sometimes we wonder why we even got into this insane industry. All I can do is try to encourage everyone to just hang in there, do what you can to make things work for you and your families. For most instances, things always seem to get worse before they get better, it will eventually get better. You all know the saying........what doesn't kill ya......

 

[Airline Driver]

Everything began unraveling with Deregulation in 1978. When airlines were forced to truly compete, the downward pressures of unregulated capitalism tore apart the industry. Fares went down, leading to a spiral of cost savings measures. Also, excessive competition into markets (6 airlines flying the same city pair) led to changes in business practices that were geared at strictly gaining market share from a competitor. Flight frequency increased, reducing loads on a particular flight. Frequent fliers were given the world. More gas was burned, and more airframes purchased. In the mid 90's, the threshold of profitability was crossed. There were too many flights, too many planes, and too many competitors. Just about that time, the RJ was born, fulfilling the need of keeping up a frequent schedule, but burning less overall gas and carrying less passengers. Props were getting older at this time too, and passengers still expected the world. They wanted a jet everywhere they went. Gas was still cheap. Here come the RJ's. The mainline unions, for reasons I don't know, decided to let these 50 and fewer seat jets be flown under contract by the regional airlines. At the time, they were given to the "best" regionals of the day : ComAir, Eagle, etc. Once the major airlines were satisfied the smaller outfits could operate the RJ's in an acceptable manner, they began offering jets to a wider range of regional operators. Contracts began small, but the effects of deregulation were really beginning to catch up to the major airlines. The economic faults began to appear before 9/11/01, but the actual stoppage of flight for a few weeks showed how weak every airline was. In times of desperation, more RJ flying was created and farmed out, and major airlines tried to trim fat anyway they could.

But, it all goes back to deregulation. Airlines historically have not been highly profitable ventures. The profit margins have averaged around 1-2%. Most every other industry would consider that a failure. A little downward pressure on air fares was all it took to erode this industry. Unions were put on the defensive, and soon the in-fighting began. Strikes produced scabs, dissent fractured ALPA, and regional vs. mainline ate away at unity from both sides.

But that is just my opinion.

Very well put sir. 100% correct. I have been saying this for years. Deregulation was the cornerstone of everything that came after.!!

 

[trainer8]

I think everybody in here, with a few exceptions would LOVE to have all regionals "in house". But now that the cat is out of the bag do you really think that it can go back in. By giving up scope years back mgmt finally figured out exactly what they could squeeze out of a pilot group. You think CAL would still be flying 733/5s if they had given up scope over 50 seats? Id love to see scope reversed and a start over, but we are stuck with what we have. RAH has fuc*&& things so bad its not funny. There are so many problems, but heres the biggy.....unity. Its everybody for themselves, its a dog eat dog world right now......there are no solutions.

So, let's back to the origin of your "stupid" post....if the mainline carrier pilots years ago gave up scope language allowing regional carrier up lift and most recently, RJs up to 86 seats,....and the regional carrier managements capitalized on this mainline pilot's "stupid" concession (your words were "exactly")...explain to me please, how are the RAH pilots responsible for this?

Is it because they had a contract already in place when this all happened, or are the pilots single handedly doing the YX and F9 deals with BB???? What was it that made these pilots such vermin in your mind? I just want you to be clear on that....

 

[CX880]

Our plan to take over the world is nearly complete. I will call this plan "Preperation H" Muuuuhoooooowaaaaahaaaaahhaaaa!!! Ass

Yes, you haven't taken over United Airlines yet.

 

[CX880]

Unless Allegiant does a serious fleet upgrade, I doubt it.

They will, they are looking into that right now somone that interviewed said.

 

[jmreii]

Generally, this is an American problem. Most every other nation pays there pilots extremely well relative to the economic conditions of that nation. Most other nations do not have large GA segments in aviation, and the availability of trained pilots is very small. Pilots are often recruited based on aptitude, and are compensated based on the small size of the skilled labor pool. In more industrialized nations (western europe, for example), strong unions have upheld the standard of living for pilots. Most nations have only a handful of airlines, of which only one or two compete internationally. Those pilots can truly shut down the nation's air service if mistreated, hence their high wages. Only in America do we have a glut of pilots, and that is only because of the excessive wealth we enjoy. Thousands of families a year send their kids off to college to be a pilot, despite the high training costs. Even with reward dwindling, Americans can afford to send their kids anyway.

The word I am looking for is called capitalism in which you will live and die by the fruits of that industry or in this case the lack there of in-order to sustain the life form you so richly desire.

 

[The Drizzle]

The word I am looking for is called capitalism in which you will live and die by the fruits of that industry or in this case the lack there of in-order to sustain the life form you so richly desire.

And yet so many so called capitalists decry the machinations of the system they so revere. Hilarious.