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Major And Regional Airlines Essay

2244 words - 9 pages

Major and Regional Airlines PAGE 1
Major and Regional AirlinesChad CabeenMark BarsnickNicholas BellAnthony BrancatoEmbry Riddle-Aeronautical UniversityAviation Law ASCI 405AbstractPassengers are always looking for cheaper fares. In an effort to provide those fares major airlines have relied heavily on regional airlines. Regional airlines now provide for over fifty percent of U.S. domestic travel. Over the past several years travel expenses for all airlines have risen dramatically due, in part, to fuel cost. These rising costs have brought the regional airlines to the mercy of the major airlines. Because of the lack of revenue for training, regional airline safety has become questionable in recent years because of accidents caused by lack of experience, proper training and pilot fatigue. While regional airlines offer lower cost of flying to passengers, there can be a significant cost in risking the safety of the passengers. The FAA and the legislature have begun taking steps to focus on making these flights safer. A pressing question and concern is whether major airlines should be liable for a completely separate regional airline they contract flights with.Major and Regional AirlinesToday, regional jets carry one in four domestic passengers and account for more than half of all U.S. departures. A regional carrier serves nearly every U.S. airport with scheduled commercial airline services, and provides the only means of scheduled air transportation to 442 communities or approximately 70% of all U.S. airports. Matching the supply of seats more closely to actual demand often favors regional aircraft. The regional airline business model also accounts for some of the success of these smaller airlines.Relationship Between Major and Regional AirlinesSome regional airlines are wholly owned subsidiaries of network airlines while others are independent companies flying for multiple network airlines. Most regional jet operators are compensated based on the quantity of seats provided or the number of hours flown. All regional airlines need to do is maintain their fleets, provide airplanes to their network airline partners on request, and fly wherever they are told to go.Many large airlines have established operational relationships with one or more regional airline companies. These airlines can be subsidiaries of the major airline or fly under a code sharing agreement. Code sharing is an aviation business term for the practice of multiple airlines selling space on the same flights, where a seat can be purchased on one airline as if actually operated by a cooperating airline under a different flight number or code. The term "code" refers to the identifier used in flight schedule. To improve their market penetration, larger airline holding companies rely on operators of smaller aircraft to provide service or added frequency service to some airports. Regionals not owned by a major carrier tend to work for more than one airline. For example, Continental points...

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