|Quoting LAXintl (Reply 145):|
Because fuel cost has nothing to do with the business case from the regionals perspective unless the flying is own their risk.
Yes it does. The major contracts the regional to do the work, the major airline pays for the fuel bill as part of the total cost.
I understand the argument you are making, I've seen the same DOT numbers, however this is a completely stupid and faulty way of running the regional system and explains why it is on the verge of collapse.
Focusing on a cost that is so insignificant in the grand scheme of operating an airplane is stupid. In my past I've flown for three different regional airlines. All of them had this laser focus on labor costs while ignoring all the other poor operational practices around them. Poor winter ops, poor scheduling practices, poor ramp management, broken equipment etc.
- For example, I must have spend hundreds of hours waiting on gates or rampers to show up to marshall us in, that is a lot of money in wasted fuel burned while waiting, even single engine. It is a very common experience at every regional.
- Broken ground power and ground air was very common too, lots of wasted money from unnecessarily running the APU
- Poor scheduling practices. I don't know how many times I used to get lost in the system. Wait on hold for over an hour only to be told, "We are working on it, we'll call you back." I used to spend days in hotels on occasion waiting for scheduling to figure out what the heck they were doing. I used to call several times a day only to be told to wait while they figure it out
- Winter ops, so many delays from poorly run deicing programs
- inefficient use of dead heads
- All of this poor operations planning leads to misconnections and upset passengers, sometimes the company even has to pay for hotels rooms
There are a ton of examples of things like this that result from poor operational planning and bean counters trying to run everything on the cheap. It looks great on paper, but as soon as something goes wrong, which it does since it is an airline, the whole thing falls apart. We are talking easily millions of dollars a year, tens of millions in the case of larger regionals.
So many things that need to be fixed, but management always
went after labor because it was easy. It was very easy to make up for losses from gross incompetence by threatening employees, especially pilots, with concessions.
That easy way out took its toll and now hardly anyone wants to be a pilot. Now all of these major airlines are refleeting the regionals (and trying yet again for concessions while there is a shortage) with larger jets and they won't have enough people to fly them. AAG's $2.5 billion aircraft order is at serious risk because of the shortsighted decisions of greedy and lazy management over the last 10 years. Not only is that a lot of capital, but that is a lot of revenue that could potentially be lost, not to mention the investment that will need to be made in growing mainline in order to pick up some of the slack. A lot of markets will be cut, frequencies will be reduced, but it won't be enough in the mid to long term. The overall economic costs to this country from the destruction of regional industry (50% of mainline flights) will be much higher than the raises they could have given pilots years ago to ensure continued interest in the profession.
Of course the CEOs won't take the blame for it and they are already trying to shift the blame of the regional pilot shortage onto the new ATP law but that is a false argument. There are plenty of well qualified individuals who meet the requirements for the near future, but will not work for the regional wages.
|Quoting mercure1 (Reply 147):|
So it makes zero sense to look at fuel when looking at commuter airline financials as they are neither pay for fuel, or are reimbursed in any way for it.
This is a stupid and shortsighted way of doing it, see above.