WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #226
Tim,
you are correct that UA has a harder time in reducing RJs because of the huge number of 50 seaters - a heritage of CO's pilot scope - and that pilot unions often get the strongest scope on RJ flying.
However, scope changes can't force a company to do something that doesn't economically work.
UA has a much higher percentage of RJs even in its own hubs because UA's market strength is and always has been much more heavily concentrated in the largest cities of the US than in small and medium sized cities -which is what DL and US have and AA to a lesser extent.
Even if UA had more 100 seat mainline jets, there is no assurance they could make them work like DL or to a lesser extent US does because it is much harder for UA to fill seats in smaller markets in part because their hubs are in large cities which are highly competitive.
It is much harder to be price and cost competitive with low fare carriers in large cities and still be able to carry lots of connecting traffic, which is more costly to carry. Thus, UA usually has to choose to protect their local market at the expense of being able to carry connecting traffic; connecting traffic on RJs is even more costly to carry.
Further, UA's costs are going up faster than other carriers as they settle merger integration contracts.
There is a great unknown about the industry until AA-US is settled. Given the overlap between AA and UA, it is very possible that UA could gain ground but UA mgmt. needs to understand "which AA" it will have to compete with.
you are correct that UA has a harder time in reducing RJs because of the huge number of 50 seaters - a heritage of CO's pilot scope - and that pilot unions often get the strongest scope on RJ flying.
However, scope changes can't force a company to do something that doesn't economically work.
UA has a much higher percentage of RJs even in its own hubs because UA's market strength is and always has been much more heavily concentrated in the largest cities of the US than in small and medium sized cities -which is what DL and US have and AA to a lesser extent.
Even if UA had more 100 seat mainline jets, there is no assurance they could make them work like DL or to a lesser extent US does because it is much harder for UA to fill seats in smaller markets in part because their hubs are in large cities which are highly competitive.
It is much harder to be price and cost competitive with low fare carriers in large cities and still be able to carry lots of connecting traffic, which is more costly to carry. Thus, UA usually has to choose to protect their local market at the expense of being able to carry connecting traffic; connecting traffic on RJs is even more costly to carry.
Further, UA's costs are going up faster than other carriers as they settle merger integration contracts.
There is a great unknown about the industry until AA-US is settled. Given the overlap between AA and UA, it is very possible that UA could gain ground but UA mgmt. needs to understand "which AA" it will have to compete with.