Last Thursday earning call provided management opportunity to comment about the parking of the 27 aircraft, and their thoughts on the pilot issue.
o CFO says at the 27 aircraft flying being withdrawn "don’t produce profits for us"
, along with saying they don't even fully cover their overhead cost.
o The 50-seater jets in general will produce financial "headwinds"
at RAH and will so until the last CPA expire in 2016.
o Going forward the company will need to resolve how to either get the aircraft back to work productively, or off property. There was mention possible deal to move as many 15 to an overseas opportunity.
o In regards to pilots they say their normal attrition has been 400 pilots annually, and in 2013 they planned to hire about 500 to gear up for growth, but only ended the year with about 450 new ones.
o For now see no issue meeting 2014 hiring goals.
o Lack of CBA could possibly made prospective applicants go elsewhere, but if new CBA ratified that should resolve itself.
o Bryan Bedford painted a long term picture of regional flying in the US, and fully expects a smaller regional industry, not result of pilot issues, but because the majors are well on the way to reducing feed flying by adjusting gauge over the next 3-years.
o He sees DL
ending with about 450 regional aircraft from 700'ish, United something similar, and AA
could end up with 400-450 depending on how things play out with the merger.
o Have not discussed with AA
regarding added opportunities there
o Sees RAH in good spot as sector evolves, as only about 70 50-seater jets remaining
o More value in 70 and 76 seat regional jets. That’s what partners demand.
o Premium placed on being able to operate with the same brand standards as partners, the same level of service, quality of service. 70-seaters do that well.
o Still an industry that tends to go to the lowest cost bidder. That’s how to figure out who the winners and losers are long term.
[Edited 2014-03-03 09:59:42]