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Pricing For Regional Carriers And Mainlines  
User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Posted (11 years 3 days 10 hours ago) and read 1992 times:

This may be an airline industry "secret," but does anyone know how pricing plans work between independent regional carriers and the mainline airlines they connect with at hubs? For example, someone from Skywest was recently on this board explaining that the new CO-Skywest agreement was good because Skywest has independence in setting fares, schedules, etc. How does this work? If I buy a $350 ticket from ABI-DCA with a connection at IAH (ABI-IAH operated by Skywest, IAH-DCA operated by CO), who gets what percentage of my money? Any ideas?


"Lose" is not spelled with two o's!!!!
5 replies: All unread, jump to last
 
User currently offlineCba From United States of America, joined Jul 2000, 4531 posts, RR: 3
Reply 1, posted (11 years 3 days 10 hours ago) and read 1984 times:

I don't think there's a lot of pricing difference. Most of the regionals, I have learned, price exactly like their mainline counterparts. For instance, I now pay the same (if not more) to fly Comair HOU-CVG than I did on Delta mainline a few years ago when they flew the route.

User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Reply 2, posted (11 years 3 days 10 hours ago) and read 1976 times:

Right, I know they price the same as the mainlines do on similar routes, but I'm wondering how they set and divide the fares for connections (like the ABI-IAH-DCA example I gave).


"Lose" is not spelled with two o's!!!!
User currently offlineAcidradio From United States of America, joined Mar 2001, 1874 posts, RR: 10
Reply 3, posted (11 years 3 days 9 hours ago) and read 1965 times:
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Where I work, we do not handle any of the ticketing or yield management issues. We are paid by NW to send a plane regardless of those issues. Mesaba does not have say in the cost of the ticket charged to the passenger, as NW does all the marketing and ticket sales. Mesaba is paid essentially to send a whole Saab regardless of the # of passengers and to send an RJ85 on a seat-mile cost basis.


Ich haben zwei Platzspielen und ein Microphone
User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Reply 4, posted (11 years 3 days 9 hours ago) and read 1959 times:

Interesting procedure at Mesaba. Apparently Skywest has a different arrangement with CO for its service to Texas markets.


"Lose" is not spelled with two o's!!!!
User currently offlineSearpqx From Netherlands, joined Jun 2000, 4343 posts, RR: 10
Reply 5, posted (11 years 3 days 9 hours ago) and read 1960 times:

It depends on the contract between the feeder and the 'mainline' carrier. Almost all, if not all, United Express work is done on a 'per departure' basis, meaning that the operating carrier receives a flat fee for each flight, no matter the load or route. UA sets all fares (so uses the same yeild policies they use on all their other routes) and controls scheduling and routing.

On the other hand, Alaska and Horizon (which are seperate companies, despite being under the same holding co.), split the revenue. On all local O&D pax, QX keeps all revenue, and on connecting pax (i.e. LAX to Walla Walla), QX receives a pro-rated share of the through fare. Similarly, QX sets its own fares for local service, and AS sets the through/connecting fares (this has changed recently as the AS/QX pricing and yield depts have been merged, but same general concept still applies). Route planning and scheduling is done by QX, but with heavy consultation between the two carriers.

Brgds
Duane



"The two most common elements in the universe are Hydrogen and stupidity"
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