ssides
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Joined: Fri Feb 09, 2001 12:57 am

Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 12:48 am

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!!!!
 
cba
Posts: 4228
Joined: Sat Jul 15, 2000 2:02 pm

RE: Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 1:03 am

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.
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 1:09 am

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!!!!
 
acidradio
Moderator
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RE: Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 1:17 am

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
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 1:28 am

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!!!!
 
searpqx
Posts: 4173
Joined: Thu Jun 29, 2000 10:36 am

RE: Pricing For Regional Carriers And Mainlines

Fri Aug 01, 2003 1:31 am

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
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