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Delta's Comair closing up shop for good.

Discussion in 'Jet Aviation Discussion' started by aviator4512, Jul 29, 2012.

  1. aviator4512, Jul 29, 2012
    #1
    aviator4512

    aviator4512 New Member

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    This is an interesting, but sad article. While the regional jet structure is drying up all over because it simply isn't as efficient, thousands will be left without jobs and one has to wonder what will happen to regional airports/areas relying on these flights. The profit margins were just too tight for them to make any money. I'm also wondering what will happen to the younger generation of pilots who rely of regionals as their starting point in the airline industry. Many younger guys start flying right seat for a regional and then move up through the ranks from there. Sad to say, but the lack of job security is one of the reasons for getting involved on the business side of things versus flying for a living.

    http://www.mercurynews.com/business...ase-operations-regional-jet-comair?refresh=no
  2. travler, Jul 29, 2012
    #2
    travler

    travler New Member

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    unfortunely the pilot seemes to be the most expendable part of the system , i think that in the big picture bussiness of all sorts in the us is in for a lot of change in the future and the air lines / comuter is part of the change that is going to take place , imho we are not investing in the future as well as we could we have too much focus on the bottom line today and are not considering the long term consiquence of the action in years to come

    just a thought travler
  3. MikeH, Jul 30, 2012
    #3
    MikeH

    MikeH New Member

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    I agree completly..Aviation is building it's own shortage of pilots.
  4. Norseman, Jul 30, 2012
    #4
    Norseman

    Norseman Member

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    Sad to see a good bunch of people being put on the street.
    The article says cost is the problem, yet we have pretty low oil prices these days. How could they stay in business when oil was $140.00 + back in 2008?
  5. travler, Jul 30, 2012
    #5
    travler

    travler New Member

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    oil is not the only problem labor and insurance also play a huge factor also throw in the parts supplies inventory tax for warehousing your parts and supply's and pretty soon cost of doing business and the diminishing return on the investment take is toll it's not like the government where you can print more money or impose another tax/fee , in some case's now it is more cost effective to drive

    just some thoughts
    travler
  6. Norseman, Jul 30, 2012
    #6
    Norseman

    Norseman Member

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    True, there is other cost besides fuel, but some sources says fuel is 35% of the cost of running an airline..

    http://www.ajc.com/business/airlines-keep-adapting-to-1371271.html

    Labor of course is another high cost, but just like fuel, you can't run an airline without labor. (That would be me, among other:)

    Increase revenue instead of cutting cost, what a concept..

    The public has been spoiled by cheap ticket prices and by one airline undercutting another and slicing throats since deregulation in 1978.

    Having worked for the worlds biggest airline, and the worlds smalles as well as severeal in between, I have seen the results up front severeal times and have found myself on the street a few times just like the Comair guys.

    Not good at all, but it keeps ticket prices down..:-(
  7. travler, Aug 2, 2012
    #7
    travler

    travler New Member

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    i think that a lot of big business to day is out of balance most exc'x are afraid to make the hard choices and divert the decision making process so long that the options are limited then when the real problems show up the options are limited , i think our long term planning verses short term is costing a lot more than most realize there is way too much put on the day to day profit margin instead of the long haul

    just a thought

    travler
  8. aviator4512, Aug 3, 2012
    #8
    aviator4512

    aviator4512 New Member

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    I can tell you aviation insurance costs are 50%+ cheaper than they were in the early 2000's. For example, a Citation that was $56,000 in premium in 2003 is now $25,000. A lot of capacity in the market has driven down the pricing irregardless of loss history. These guys are cutting each other's kneecaps off for business.

    As far as the state of the airline industry, look at Southwest and tell me that you can't make a buck in the business. Their business model makes sense and they have adapted with the market without having to tack on various fees (change fees, bag fees, etc). They value their employees and the employees truly care about the company's well being versus 99% of the other airlines which are always battling employees and using them as expendable assets.
  9. Norseman, Aug 3, 2012
    #9
    Norseman

    Norseman Member

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    True words spoken.
    Too many bean counters trying to run airlines by cutting cost instead of actually managing a business..:rolleyes:
  10. travler, Aug 3, 2012
    #10
    travler

    travler New Member

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    at this point and time and as in too many cases we take the easy way out and sell for a big profit to a large investment group or have an ipo for a big cash transfussion then lose control of the co because of share holders and investors that only know how to work the system to there best financial advantage , I M H O that problem is much larger than any one even comprehends , the bottom line is it becomes some one else's problem

    just a quick thought

    travler