Question Regarding Affiliate Costs

[USFlyer]

US has no choice but to use affiliates. US is not in a position to get financing for the RJs, so they must rely on other companies' credit ratings to add the RJs to the fleet.

 

[diogenes]

USFlyer,

That is unfortunately the case now.

But U had a choice when they went big for Mesa and Chautauqua to control this aspect of costs, and failed to do so.

One would hope while U has the leverage of BK, that they address this issue. As you point out, they cannot become one carrier. They CAN operate as one, though.

 

[gso-crew]

Explains a 535a flight GSO-BOS that runs empty everyday ..... should depart 730a-830a with psgrs.

 

[700UW]

You all need to remember one thing, Dave Siegel and John Orenstien are great buddies, friends and vacation together. So remember one hand washes the other.

 

[FWAAA]

When the mainline carriers are (were) profitable, it made sense to fix the cost of the regional feed thru FPD payments; the mainline gets all the revenue and keeps all the upside.

But over the last 3+ years of horrific losses at the mainlines, the arrangements have made no sense. The regionals get guaranteed profits to deliver feed that may actually be costing the mainlines money.

Owning one's feed network, or most of it (as DL and AA do), appears to be the better choice in money-losing times. If we ever get back to a cash-positive environment (or, pray tell, a profitable one), then outsourced feed may make sense again.

 

[X-U]

PSA is a sub of US Airways Group, so not technically outsourcing.

So should the A320s be outsourced next? British Airways has affiliates that fly as BA using A320s. I'm sure US could sniff up a handful of airlines to take over that flying, and compete with each other for who can do it the cheapest. We've already given permission for airplanes with 100 seats to not be flown by US, why noy 120 seat planes? Why have an airline at all when you can have a franchise? No need to buy planes or worry about employees, just finding companies with very low bids to do your work.

That's whats wrong here. What's good for some apparently isn't good for others. Outsourcing is fine if it's not your job.

[post="248540"][/post]​

Mainline aircraft are already being outsourced. It's called the Star Alliance.

 

[madders]

Explains a 535a flight GSO-BOS that runs empty everyday ..... should depart 730a-830a with psgrs.

[post="248714"][/post]​

Flights like these are mainly repo flights with hope that they get some revenue..no doubt that plane when it gets into BOS makes up a flight to go somewhere..

There are a lot of flights like these

 

[gso-crew]

Flights like these are mainly repo flights with hope that they get some revenue..no doubt that plane when it gets into BOS makes up a flight to go somewhere..

There are a lot of flights like these

[post="248786"][/post]​

Yea, but a 2 HOUR repo flight????????