Regional US Airlines Gain In Prominence

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  http://www.eyefortravel.com/index.asp?news=48889&src=nwsltr&emins1={encEmail}&enc=1 
   
  Even as there are numerous airlines in the US that are engulfed by hurdles related to fuel costs, competition and bankruptcies, there are other airlines which are thriving on regional routes. - (11/29/2005)
   
  ?You may have never heard of these airlines but chances are you might have flown one disguised as United Express, Northwest Airlink, or the Delta Connection. These are the ?regional? airlines that take you from places like Medford, Ore., to United?s hub in San Francisco; Little Rock, to US Airways? hub in Charlotte; or Wichita, to Continental?s hub in Houston,? reports usatoday.com. 
   
  The regional airlines have deals with the major airlines which pay their fuel, landing and insurance costs, said Ray Neidl, an analyst with Calyon Securities, according to AP. That pass-through cost structure buffers them from a lot of the costs that weigh down the larger airlines, says the AP report. ?A few regionals are struggling or have gone into bankruptcy, following the path of their big airline partners, but others, including Mesa, Indiana-based Republic and Utah-based SkyWest, have enjoyed growing profits and significant stock gains,? it added. 
   
  According to nytimes.com, the regional airlines share several commonalities: They usually operate jets or turboprops with less than 100 seats; They usually fly short hops; They primarily serve as feeder carriers to the larger ?legacy? airlines. According to AP, regional carriers usually fly between smaller destinations and major hubs under large airlines? names, logos and ticketing. The large airlines guarantee revenue to the regional carriers, which don?t have the expensive union contracts and pension obligations of the major airlines. 
   
  Citing examples, the reports refer to Mesa, which doubled its profit in the fiscal year that ended September 30 to $56.9 million. SkyWest grew its third-quarter profits 41 percent to $56.9 million over last year?s and Republic?s third-quarter earnings were up 63 percent to $14 million.


		
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