Republic orders 100 E175s
10-31-2018, 05:07 PM
#91
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Joined APC: Oct 2012
Position: Holiday Inn, King Non-Smoking
Posts: 177
Perhaps. But AA has stated in no uncertain terms that they have a very distinct cost advantage at the WOs due to the fact that they keep all of the profits and their cost structure is lower than the contract-regionals. Taking a 175 down to 65 seats makes that margin all the wider.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
I could see AA using these to leverage against their WO’s as part of the allmighty whipsaw.
Not saying that is the case, but there is most certainly a game of chess being played.
10-31-2018, 08:13 PM
#92
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Joined APC: Feb 2012
Position: CRJ FO
Posts: 4,601
Hence this whole CRJ rumor. There are some pretty solid leads that we have developed CR7/9 maintenance and training programs.
I could see AA using these to leverage against their WO’s as part of the allmighty whipsaw.
Not saying that is the case, but there is most certainly a game of chess being played.
I could see AA using these to leverage against their WO’s as part of the allmighty whipsaw.
Not saying that is the case, but there is most certainly a game of chess being played.
11-01-2018, 08:44 AM
#94
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Joined APC: May 2017
Position: Guppy
Posts: 764
Perhaps. But AA has stated in no uncertain terms that they have a very distinct cost advantage at the WOs due to the fact that they keep all of the profits and their cost structure is lower than the contract-regionals. Taking a 175 down to 65 seats makes that margin all the wider.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
They're not going to take 11 seats out of an Envoy (or Republic) 175, but taking 5 seats out of an old 70-seater 170 that needs to be refreshed anyway (and is already paid for) to gain additional "large" RJ flying isn't such a bad deal.
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11-01-2018, 10:19 AM
#96
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Joined APC: Feb 2012
Position: CRJ FO
Posts: 4,601
His position on that was that as the 50-seaters approach their end of life, it's a way for AA to increase scope without increasing scope.
They're not going to take 11 seats out of an Envoy (or Republic) 175, but taking 5 seats out of an old 70-seater 170 that needs to be refreshed anyway (and is already paid for) to gain additional "large" RJ flying isn't such a bad deal.
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They're not going to take 11 seats out of an Envoy (or Republic) 175, but taking 5 seats out of an old 70-seater 170 that needs to be refreshed anyway (and is already paid for) to gain additional "large" RJ flying isn't such a bad deal.
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11-05-2018, 07:12 AM
#97
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Joined APC: Mar 2018
Position: Feeder of Amber
Posts: 229
Not to mention, SkyWest just added a ton of CRJ-700 flying at AA that counts for “small RJ’s”. AA is taking every 70 seat RJ they can get their hands on and taking 5 seats out and painting it. I expect the 170s there soon.
11-05-2018, 08:48 AM
#98
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Joined APC: Nov 2013
Position: Piloto
Posts: 323
Perhaps. But AA has stated in no uncertain terms that they have a very distinct cost advantage at the WOs due to the fact that they keep all of the profits and their cost structure is lower than the contract-regionals. Taking a 175 down to 65 seats makes that margin all the wider.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
I don’t doubt that Republic could gain some AA flying but I think any growth will likely be at Envoy and PSA for the WO feed. Piedmont in my opinion is the wild card.
If there was a very distinct advantage resulting in more profit making making results for AAG, they would not still be using 6 non-wholly-owned in 2018, and they are. They wouldn't be shifting flying back and forth between some of their WOs and non-WOs, and they still do.
Contracting airlines has a huge benefit: keep your profit making structure while not having to deal with all the hassle/problems that comes with operational cost, payroll and HR.
11-05-2018, 09:47 AM
#99
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Joined APC: Apr 2015
Posts: 2,531
Last time I checked, money made by a wholly owned company is 100 percent made by the patent company. PSA, ENY, and PDT are independent companies owned by AAG. That’s correct, but the profits that AAG reports a are those of mainline, PDT, PSA, and ENY included as well.
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11-05-2018, 09:52 AM
#100
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Joined APC: Mar 2011
Posts: 1,029
Last time I checked, money made by a wholly owned company is 100 percent made by the patent company. PSA, ENY, and PDT are independent companies owned by AAG. That’s correct, but the profits that AAG reports a are those of mainline, PDT, PSA, and ENY included as well.
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I think the only reason they remain separate is because of the inevitable whipsaw.
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