Express flying amount?

[TheOneMarine]

I was sitting bored and talking with Paul and started to wonder, when an airline like American or Airways signs on a carrier for express services, how is the amount of flying that the operator recieves determined? What I mean is, is it based on a percentage of total block flying at all of the mainline carriers express ops or is it based on a solid, unchanged number of block hours like, you get 3000 in a certain month and it is unchanged? Thanks all.

 

[MusketeerMan]

There is probably some verbiage in the individual contracts with the carriers that determine how many hours a carrier gets. At RAH, no matter the month, we seem to always be right around 17,000 block hours on the Republic certificate. I obviously don't know much about the inner dealings, but it doesn't seem to change too much. If we add new cities, etc., a different city seems to be taken away.

 

[Velocipede]

Look up Capacity Purchase Agreement (CPA).

 

[wheelsup]

It depends on how much your particular regional bribed...I mean loaned the parent company prior to signing said contract.

 

[Alchemy]

Scope clauses (part of the contract between major airline pilots and their companies) usually limit the number of regional jets than can be flown by express carriers. I don't know of any scope clauses that specifically limit "block hours" off the top of my head, but obviously limiting regional fleet size will also limit regional block hours. A plane can only fly so many hours in a day.

Once fleet size is settled, some mainlne bean counters, probably in the revenue management departent, determine how many regional block hours are needed. They probably modify the scheudled block hours on a monthly basis. Ever read that fine print on an airline ticket about how flight times are subject to change? Well, that's because the number crunchers will add, remove, or shift capacity based on anticipated demand for their routes between the time a passenger purchases a ticket and shows up for the flight. There are a lot of economic factors under consideration when determining how many block hours to award to a regional airline, and the numbers are adjusted month to month.

If they need more block hours than the current regional fleet can provide, then it's time to acquire more airframes, if the scope clause will allow it. In lieu of that they could add mainlne capacity to regional routes (which is the whole point of the scope clause). If they need fewer regional block hours, it's time to send some RJ's the desert. YAY!

 

[Alchemy]

Oh, and if your question was geared more toward "why does one regional carrier get more block hours for a brand than another?", the answers to that would probably be fleet distribution, cost, reliability, and politics. Who has the airplanes, who is cheapest, who gets the job done most often, and do you need to "stick it" to anybody to prove a point and gain price negotiating leverage?

Sorry if I missed the gist of your O.P., sometimes I still operate in the one mainline - one regional mindset.

 

[TheOneMarine]

Look up Capacity Purchase Agreement (CPA).

I looked it up and see certain articles talking about specific carrier CPA's but nothing specific and not exactly what I was looking for.

All I am really asking is do they tell the regional, you get this much flying as a percentage or as a set number? Gracias.

 

[derg]

It probably all depends.

I know it's going to get very interesting over the next few months because many airlines are looking for any reason to cut more 50-seat flying.

"OMG! The price of long grain enriched rice has gone up 5%! We're making bold steps to cut capacity..."

 

[BobDDuck]

"OMG! The price of long grain enriched rice has gone up 5%! We're making bold steps to cut capacity..."

It's actually not the price of long grain rice that has gone up but rather due to the unionization of local workers, the enriching process has become more costly.

 

[Alchemy]

I looked it up and see certain articles talking about specific carrier CPA's but nothing specific and not exactly what I was looking for.

All I am really asking is do they tell the regional, you get this much flying as a percentage or as a set number? Gracias.

I think the CPA at "my" company just specifies the number of airframes we will operate. I think we are paid based on block hours, wich incentives for on-time performance and penalties for tardiness and cancelletions.

So naturally schedule makers will have a minimum number of block hours they want each airplane to fly. Less than that, and the leases on the planes won't be covered by the revenue they generate, and it's time start parking some (this assumes the mainline carrier is financing the aircraft). Most CPA's have a clause for removal of airplanes in this scenario, I think.

In short, you get X airplanes and you will fly X * Y block hours, Y being whatever amount of lift is needed that month. I don't know of any regional, except maybe ASA with their ATL clause, that has a contract dictating what % of overall brand regional lift they MUST be the provider of.

 

[TheOneMarine]

I think the CPA at "my" company just specifies the number of airframes we will operate. I think we are paid based on block hours, wich incentives for on-time performance and penalties for tardiness and cancelletions.

So naturally schedule makers will have a minimum number of block hours they want each airplane to fly. Less than that, and the leases on the planes won't be covered by the revenue they generate, and it's time start parking some (this assumes the mainline carrier is financing the aircraft). Most CPA's have a clause for removal of airplanes in this scenario, I think.

In short, you get X airplanes and you will fly X * Y block hours, Y being whatever amount of lift is needed that month. I don't know of any regional, except maybe ASA with their ATL clause, that has a contract dictating what % of overall brand regional lift they MUST be the provider of.

Exactly the answer I was looking for! Thanks! The rest was really good info to know though.