Cloud Surfer
All Roads lead to Trantor
Their desperation literally reeks through my computer screen.
The pilot shortage was caused by the downturn after 9/11 and the subsequent reductions in airline employee compensation packages. People who otherwise might have become pilots realized there were easier ways to starve to death. So they chose other professions. Regional airlines responded to the shortage by lowering the barriers to entry. Then Colgan 3407 happened, and ALPA and Congress colluded to raise hiring minimums rather than improving training, which further exacerbated the shortage.
The unlimited flow of money is ridiculous. They can charge any amount because you have to go to college and they'll give you a loan no matter how much.If the price of something goes up outside the normal CPI, either there is a shortage (IE basic economics) or there is some kind of revenue "leakage" going on (IE someone's cut is getting a lot bigger).
Health care and University's come to mind. I'm as much of a fan of higher education as you will find, but the collapse coming in that area, and the financial pinch for some it will cause, will be well earned.
It's almost like massive amounts of government money funnelling into an industry causes a bubble. If only we had some precedent in other industries to go by...The unlimited flow of money is ridiculous. They can charge any amount because you have to go to college and they'll give you a loan no matter how much.
The housing bubble is going to burst again. You should see the amount they will loan me. I can't figure out how I'd make the monthly payment but they'll give me the loan.It's almost like massive amounts of government money funnelling into an industry causes a bubble. If only we had some precedent in other industries to go by...
The challenge we had in Arizona is that we gutted education funding on the state level. Then that money has to be made up somewhere. But then the alumni demand a championship and a big stadiums and the citizens want a tax cut.
Yup, the banksters come to mind almost immediately . . . and after the buble burst they were right back at it through the QE scheme lolIt's almost like massive amounts of government money funnelling into an industry causes a bubble. If only we had some precedent in other industries to go by...
AA mainline CASM: $0.125I don't see why the airlines can't consolidate routes and fly larger jets. The regional model already has RJs flying traditionally mainline routes and with this huge proliferation in regional jets they can always sell off more and more RJs and fly bigger aircraft half as often which would also help out with airport congestion.
I wonder how that compares to United and Delta's regional feed vs narrowbody. I also wonder the number of regional airplanes each has.AA mainline CASM: $0.125
AA regional CASM: $0.197
If AA could consolidate their costs would almost halve
Pretty crazy how much those RJs cost to run
The problem is all of their hubs, unlike DAL who runs something like 80% of their traffic through ATL. It's a better system. DAL can run one MD80 to ATL where as AA will run RJs to DFW, CLT, PHL, ORD, etc.
That being said any company running RJs nowadays is at a disadvantage cost wise.
The cost per seat mile is less on a mainline but will they be filled if you (let's say) change from 5 RJ flights to 3 mainline flights? Will people be willing to have a longer layover? Will the flight times even line up with the connecting flights?AA mainline CASM: $0.125
AA regional CASM: $0.197
If AA could consolidate their costs would almost halve
Pretty crazy how much those RJs cost to run
The problem is all of their hubs, unlike DAL who runs something like 80% of their traffic through ATL. It's a better system. DAL can run one MD80 to ATL where as AA will run RJs to DFW, CLT, PHL, ORD, etc.
That being said any company running RJs nowadays is at a disadvantage cost wise.
The cost per seat mile is less on a mainline but will they be filled if you (let's say) change from 5 RJ flights to 3 mainline flights? Will people be willing to have a longer layover? Will the flight times even line up with the connecting flights?
lets say someone is trying to fly from nashville to savanah on delta. Right now it's likely that they would have 2 short RJ flights with a small layover in atl, but if the frequency of both the RJ flights is cut what would be an hour layover would likely turn into 3 hours. With the high cost of air fair I would bet more people would just drive as it would take just as long from arriving at Nashville to collecting bags in Savannah. As more people drive or just skip out do to lack of convenience there will be a lot less seats filled then when on RJs, less seats filled means less or no profit on that flight. Lack of profit on a certain flight would cause more cuts, the more cuts the More likely people will skip flying,it's a vicious cycle. They need rjs to keep the convience factor for many smaller routes. Now that I have said that there is no reason that a lot of RJ routes can't be cut between some cities, ex slc-lax, there is literally a flight every hour or less being a mix of mainline and rj. Same goes for lax-sea, jfk-atl etc...