Scott4AA
Topic Author
Posts: 319
Joined: Sat Apr 06, 2002 11:36 am

Regional Carriers

Mon Jul 19, 2004 10:16 am

Which is more cost effective and conveniant for airlines?

1. To follow the AMR example and fully own the regional carrier (American Eagle)

2. To follow the example of most other US airlines and use airlines like ASA and Mesa.
American Airlines - We Know Why You Fly
 
CincyBaseFA
Posts: 24
Joined: Thu May 13, 2004 12:45 am

RE: Regional Carriers

Mon Jul 19, 2004 10:20 am

ASA??? They are completely part of Delta. They are not outsourced.
 
Cubsrule
Posts: 11648
Joined: Sat May 15, 2004 12:13 pm

RE: Regional Carriers

Mon Jul 19, 2004 12:18 pm

Well, UA outsources to Air Wisconsin, ACA (soon to end), Skywest, Shuttle America, Mesa, Chautaugua, and Transstates. This is the largest collection of any U.S. airline.

US outsources to Mesa, Air Midwest (owned by Mesa), Chautauqua, Colgan, Shuttle America (soon to end), and Transstates. This is the second largest collection of any U.S. airline. (It's worth noting that US also uses wholly owned subsidiaries PSA and Piedmont as well as pseudo-espress wholly owned carrier MidAmerica). This is quite a collection of outsourced carriers also.

The two majors in the worst financial shape have the longest list of express carriers by a long shot. Is there a causal link? I'm not sure, but it is interesting to note this pattern.
I can't decide whether I miss the tulip or the bowling shoe more
 
MSPXJGuy
Posts: 146
Joined: Thu Aug 21, 2003 4:37 am

RE: Regional Carriers

Mon Jul 19, 2004 12:51 pm

Just to add to the link that Cubsrule made, CO and NW who are in the best shape have 1 and 2 respectively. Then again American just has American Eagle and they aren't so hot so I guess we won't know.
 
SonOfACaptain
Posts: 1695
Joined: Thu May 27, 2004 5:36 am

RE: Regional Carriers

Mon Jul 19, 2004 1:06 pm

The wholly own are the most effective, because you don't have to pay a certain fee every time a plane goes up, whereas you do if lets say Mesa is flying.

-SOAC
Non Illegitimi Carborundum
 
bjg231
Posts: 157
Joined: Thu May 20, 2004 2:30 pm

RE: Regional Carriers

Mon Jul 19, 2004 1:58 pm

Is expressjet wholly owned by CO or is that an outsource?
If at first you don't succeed, then skydiving is not for you.
 
InnocuousFox
Posts: 2556
Joined: Sat Dec 06, 2003 1:30 am

RE: Regional Carriers

Tue Jul 20, 2004 4:03 am

I believe they created it as its own company but they retain a controlling interest. I'm not entirely sure, though.
Dave Mark - Intrinsic Algorithm - Reducing the world to mathematical equations!
 
airways6max
Posts: 474
Joined: Sat Aug 09, 2003 6:22 am

RE: Regional Carriers

Tue Jul 20, 2004 4:43 am

I suggest a third option. That the majors get out of the business of flying commuter planes altogether. Many of those regional routes are low-yield and would be better served by carriers completely independent of the majors. For example, AA could probably solve many of its financial problems at a stroke if it simply sold off American Eagle. More regionals should follow the example of ASA and declare their Independence.

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