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Tag: Republic Airlines

Breaking the chain to get the job you want

Recently, I’ve had to sit on the cockpit jump seat during several commutes because of heavy loads during the holidays. It isn’t the most comfortable seat in the house, but hey, a free ride is a free ride and full airplanes bode well for my job security and profit sharing. This has led to all manner of conversations with the crew—outside of the sterile cockpit realm, of course.

Most of these commutes tend to be on Republic, which is one of the largest regionals in the country, and also the world’s largest operator of the Embraer E-170/175 series of jets. In fact, following Republic’s bankruptcy a few years ago, it’s the only airplane the company operates, having shed the older E-145 “Jungle Jet.”

Almost without exception, the conversation at some point turns to the topic of hiring at both the regionals and the majors, rumors, fact-checking, and seeing who knows who. Republic flies on behalf of United, American, and Delta, and it is a key cog for each carrier. Numerous pilots have relayed to me that it’s extremely difficult for Republic pilots to get on directly with one of their code-share partners; friends who work for Republic have told me the same thing. The conclusion and consensus is that the three “brand names” don’t want to contribute to a shortage of pilots at one of their key regional partners. That said, all three have other carriers with whom they have preferential hiring or interview programs set up, but those other regionals tend to be much smaller. and the process is tightly controlled in order to manage the flow of pilots in such a way that metal can still be moved.

I saw this when I was at Comair. For years, Delta had three regional partners responsible for over 90 percent of its regional flying: Comair, ASA, and Skywest. When Delta needed to hire, it tended to take pilots from one of the three carriers in chunks, and when that carrier called Atlanta to complain about losing pilots, the ratio would shift to favor pilots from one of the other two.

This is a bit of a simplistic explanation, but the reality was that Delta didn’t want to leave any of its regionals with a shortage that would only hurt Delta, so the company hired relatively evenly from all three. By doing so, the company also got pilots that were intimately familiar with the Delta system, so it was a win-win. Keep in mind that Delta was also getting pilots experienced in flying jets when that was a relatively rare phenomenon, unlike today.

Those days are largely over, and the pilot shortage is real enough that the majors with regional feed need to consider the ramifications of their hiring decisions on their regional partners. As a result, pilots at Republic are forced to consider “breaking the chain” if they want to get on one with one of the big legacy carriers. Essentially, this means that many are opting for a carrier such as Spirit, JetBlue, Allegiant, or one of the cargo ACMI operators like Southern or Kalitta. Many are also going to Southwest.

Once they get hired by someone outside of their brand of choice, they test the waters for a year or so and make a decision about going through the job-searching process, a new training cycle, et cetera, taking into account career goals and the disruption to family life.  As you might expect, many stay, especially with strong carriers like Southwest and JetBlue. But not all do, and they find that getting hired at UA/AA/DL is much easier when they are no longer directly tied to those carriers. Passing muster in a bigger airplane also helps.

None of this is necessarily fair, but it is the reality of the current job market, and it’s a strategy that people in other fields have been using since the dawn of time. Pilots are no different: Job One is looking out for yourself. Hopefully, Republic will enter into genuine flow or feed agreements across the board, which would benefit all parties. In the meantime, pilots at carriers in a similar position need to be willing to consider the same strategy.—Chip Wright

Will there be any more consolidation?

The airline industry has gone through several cycles of consolidation in the last 10 to 15 years: ValuJet/AirTran, AirTran/Southwest, TWA/American, USAir/America West, USAir/American, Delta/Northwest, and United/Continental at the majors. At the regionals, Republic/Chautauqua/Shuttle America, SkyWest/ASA/ExpressJet and Mesaba/Pinnacle have changed the landscape. Alaska and Virgin America are the most recent to announce plans to wed.

Of late, there have been rumors about a jetBlue merger, and there has long been talk of Spirit and Frontier. JetBlue seems to be the most interesting one, because that airline has become a major powerhouse with hubs in New York, Boston, and Orlando, along with a sizable presence in Fort Lauderdale. JetBlue also caters to both business and leisure travelers.

Historically, airline mergers have had to meet several criteria, the most important of which is the maintenance of access to travel for passengers. This became less important as Congress recognized in the last round of mergers that there was too much service at airfares that were too low. With the mega-carriers now operating, profits have soared. However, what makes a merger with jetBlue difficult is the potential choke-hold that its hubs would provide to whomever buys the airline. Congress could require some kind of a fracturing of the company in order to support a merger. JFK, the crown jewel, would be the ultimate bargaining chip.

But here’s the rub: Too much of what jetBlue does out of JFK replicates too much of what other carriers already offer from their own East Coast coast hubs. An airline would need to add service from JFK that jetBlue doesn’t have, or service that supplements existing international service from that market.

Orlando is a leisure market with lower yields, and it doesn’t lend itself well to being a southern connecting hub such as Atlanta and Charlotte, though it does provide ready access to points south in the Caribbean and South America. But, many of those are also load yield, so the problem doesn’t immediately solve itself.

Mergers also create other huge challenges, not the least of which is  bringing together drastically different work cultures and product offerings. Nothing will clog up a merger like disgruntled employees that are also being swamped with new procedures, rules, and policies. The end result is billions of dollars lost and millions of unhappy customers.

I won’t say that jetBlue won’t or can’t get caught up in a merger, but it has to be accomplished wisely, with the realization that the end product will be drastically different. I do, however, think that a couple of the ultra-low-cost carriers will be forced to eventually merge, with Spirit and Frontier being the logical choices. They compete for a segmented market offering low fares that are hard to turn into profits. Customer service is less of a concern, but it still matters. I think Allegiant will continue to be a stand-alone carrier because its niche is different, and it sells the whole travel package as a vacation, not just a ticket from A to B.

The regionals are harder to predict. Their existence depends on capacity purchase agreements with the majors. However, even SkyWest, which was long considered “the place” to work, is having trouble recruiting and retaining pilots. It’s possible that, down the road, SkyWest and Republic may have to at least do the dance.

Consolidation is probably over for now. However, in such a dynamic industry, anything can happen. Change is constant, and it stands to reason that offers will at some point be made and entertained. Whether they will be consummated will depend on the circumstances in place at the time.—Chip Wright