Just Wrong

P

pilotlight

Well-Known Member
I know that the issue has been discussed over and over again but that doesnt mean we should just let it happen. Right now, there is a shuttle america E170 operating Den-msp and there is a E190 Republic aircraft operating the same route. Im sure this is not the only city this is happening. So you have a regional carrier for united operating a flight for them, taking the profit and using that money to operate a 190 on the same route to compete AGAINST UNITED.
I get it, Republic is its own airline, and I wish them luck, but how are the majors allowing this to happen. In my opinion its a violation of scope somewhere, and its hurting the rest of us. If they want to branch off, then the majors need to cut ties right now.
 
pilotlight said:
I know that the issue has been discussed over and over again but that doesnt mean we should just let it happen. Right now, there is a shuttle america E170 operating Den-msp and there is a E190 Republic aircraft operating the same route. Im sure this is not the only city this is happening. So you have a regional carrier for united operating a flight for them, taking the profit and using that money to operate a 190 on the same route to compete AGAINST UNITED.
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Well, not really, since I doubt United could operate the route profitably themselves. They make some profit contracting out to a regional - if not - they could simply drop the service to msp entirely.

I think the bigger problem is that something bigger than a DC-9 is now considered a "regional" aircraft.
 
Well they are under two different brand names. Skywest flies CRJs SFO-SLC 5 times a day for United. They also do it 5 or 6 times a day for Delta. Its just the way it goes.
 
drunkenbeagle said:
Well, not really, since I doubt United could operate the route profitably themselves. They make some profit contracting out to a regional - if not - they could simply drop the service to msp entirely.
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That's not the point. If say, Skywest or GoJets was operating a 70 seater on the route the "profit" from the Fee For Departure would go back into Skywest or GoJets and hopefully be used to improve (or upkeep) the associated costs of flying around United passengers.

With Republic the money could in theory be going into the improvement and upkeep of the 190 that is directly competing with United for those very same passengers.
 
ChasenSFO said:
Well they are under two different brand names. Skywest flies CRJs SFO-SLC 5 times a day for United.
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How about just eliminating the concept of an "airline holding company" (which honestly, is pretty much any airline now).

The industry seems to be moving to more of a "franchise" model anyway. Running a small regional doesn't seem much different than owning a few McDonalds franchises. Prices and margins are set from the top, yet the franchisee takes most of the risk, but needs extremely low labor costs to compete with the other franchises and stay afloat. Franchises are mostly immune from unions.
 
SpiraMirabilis said:
I'm sure there is a no-compete clause, or would be shocked if there wasn't.
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If there were, someone wouldn't be flying the route. I doubt that when the services agreement that Republic signed with United was signed, United thought Republic would be in a position to buy Midwest AND Frontier to directly compete with them.
 
pilotlight said:
I know that the issue has been discussed over and over again but that doesnt mean we should just let it happen. Right now, there is a shuttle america E170 operating Den-msp and there is a E190 Republic aircraft operating the same route. Im sure this is not the only city this is happening. So you have a regional carrier for united operating a flight for them, taking the profit and using that money to operate a 190 on the same route to compete AGAINST UNITED.
I get it, Republic is its own airline, and I wish them luck, but how are the majors allowing this to happen. In my opinion its a violation of scope somewhere, and its hurting the rest of us. If they want to branch off, then the majors need to cut ties right now.
Click to expand...

I bet Tilton and Bedford go on vacation together.
 
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