In my opinion, US Airways is changing the paradigm on how regional airlines will feed and support network carriers in the future. What we are witnessing in the new agreements between US Airways, Air Wisconsin, and Republic, is a new sort of â€franchise fee†where the parties involved are investing in the right to feed a selected mainline franchise.
Much of this has to due with deteriorating industry fundamentals and self preservation, but as the trunk airlines move towards requiring the feeders to pay to be affiliated, the feeders will be less able and less willing to fly for several carriers. Each party will be financially tied to one other, which will lead to closer relationships between the mainline and its affiliates.
It would not surprise me in the end if the major US Airways Express carrier’s are Air Wisconsin, Chautauqua, and Republic. In the case of its business partner, United Airlines may end up with Independence Air (if they have the money to invest in United) and possibly Mesa and TSA taking on expanded or new roles in United Express.
Today the Pittsburgh Post-Gazette reported local airline analyst Bill Lauer considers the turn to commuter carriers two or three times smaller than US Airways to be a "brilliant" tactical move by the bigger airline. It appeals to the "enlightened self interest" of the smaller carriers, who need US Airways as much as US Airways needs them. "If US Airways goes down, the loss of revenue may be so great for [regional carriers] that they are imperiled, as well," he said. These new agreements mark a new beginning for US Airways and its affiliates who are more tied together and more dependent upon one another.
I believe from a business stand point this mutual support is for the better since the affliliates will have a large stake in the future success of the mainline.
Meanwhile, as the industry evolves, there is continued reason to believe that US Airways could be involved in a corporate combination in the not-so-distant future.
Regards,
USA320Pilot
Much of this has to due with deteriorating industry fundamentals and self preservation, but as the trunk airlines move towards requiring the feeders to pay to be affiliated, the feeders will be less able and less willing to fly for several carriers. Each party will be financially tied to one other, which will lead to closer relationships between the mainline and its affiliates.
It would not surprise me in the end if the major US Airways Express carrier’s are Air Wisconsin, Chautauqua, and Republic. In the case of its business partner, United Airlines may end up with Independence Air (if they have the money to invest in United) and possibly Mesa and TSA taking on expanded or new roles in United Express.
Today the Pittsburgh Post-Gazette reported local airline analyst Bill Lauer considers the turn to commuter carriers two or three times smaller than US Airways to be a "brilliant" tactical move by the bigger airline. It appeals to the "enlightened self interest" of the smaller carriers, who need US Airways as much as US Airways needs them. "If US Airways goes down, the loss of revenue may be so great for [regional carriers] that they are imperiled, as well," he said. These new agreements mark a new beginning for US Airways and its affiliates who are more tied together and more dependent upon one another.
I believe from a business stand point this mutual support is for the better since the affliliates will have a large stake in the future success of the mainline.
Meanwhile, as the industry evolves, there is continued reason to believe that US Airways could be involved in a corporate combination in the not-so-distant future.
Regards,
USA320Pilot
