The folks in Ohio and Kentucky have been provided with an infinitely easier path to paradise. On 6 June, a nonstop flight was launched that will transport sunseekers the 1,053 miles from Cincinnati-Northern Kentucky Airport to Nassau in the Bahamas each Saturday and Sunday.
It is not a major carrier, however, that is providing this service. It is regional airline Comair, which will use its 50-seat Canadair RJs for the purpose. It will be Comair's longest nonstop service, although a glance at the Cincinnati-based airline's route map shows a sizeable chunk of the middle and eastern US is now Comair domain. The airline is stretching its legs in all directions now that it has 60 CRJs making up two-thirds of its total fleet. Daily nonstop service from Cincinnati to Houston, a distance of 800 miles, begins on 3 August.
Comair is, perhaps, the most startling example of how the face of the regionals has changed in the US, but Comair is not alone. Atlantic Coast Airlines, Atlantic Southeast Airlines, American Eagle and Continental Express are among the other examples of regionals that have become financially successful 'major' carriers in their own right. That success is largely due in each case to the potent combination of the regional jet and an affiliation with a major airline.
But with success comes a spotlight, as the US majors have discovered all too painfully this year. As their profits - and in some cases, their fares - have hit new heights, so Washington DC has become increasingly interested in their competitive behaviour. Tied to that interest is concern about the wave of international and domestic alliances that are either forged or pending.
So far, the regionals have escaped such scrutiny. Legislative interference has largely been restricted to matters of operational safety, such as how exits are labelled on a 19-seater. But the big-boy games that many of the regionals are currently playing will ultimately attract big-boy politics. And there are signs that management at some of these large regionals are already aware of this and want to be fully prepared.
At the request of several members, the Regional Airline Association has hired its first legislative affairs representatives. These two RAA representatives will effectively be the watchdogs of regionals, maintaining a day-to-day eye on Capitol Hill and alerting the RAA of any legislative issues that might affect the industry. As a first step, the RAA - which has nowhere near the resources or political clout of the Air Transport Association that promotes the interests of the major carriers - is hiring these representatives through the DC-based management company to which it belongs. But the organisation is also considering employing a permanent government affairs person who would be dedicated to safeguarding the RAA's political interests. 'We see now that this is going to be a part of the RAA's staffing, whether it's inhouse or from outside,' says RAA's president Walt Coleman. 'We understand that some of what is happening in Washington could have far reaching effects that would not be beneficial to our industry,' continues Coleman.
Hints as to where the regionals might find themselves in trouble are already appearing. In a speech at the RAA's recent annual convention, the Department of Transportation's assistant secretary for aviation and international affairs, Charles Hunnicutt, sounded some gentle warning bells. While praising the industry for its recent success, Hunnicutt made no secret of what really concerns the powers in Washington. 'At the DOT, we have a special interest in the economic vitality of the destinations you serve, especially rural America, ranging from mid-sized cities down to the smallest, most isolated communities,' said Hunnicutt.
In other words, in the near total absence of a national rail network, America is depending on the regionals to keep open the capillaries to its smallest communities, just as the majors keep open the arteries. But what happens when the regionals, thanks to their small jets and fat feed from the majors, increase their profits by reaching farther afield and adding frequencies to their most successful routes? In other words, what happens when Houston or Nassau make more economic sense than Springfield - a small Ohio community?
Hunnicutt alluded to this possibility and made it clear that the regionals will not be let off the hook. 'As you upgrade your fleet to larger aircraft and reevaluate the economics of your route systems, concern will inevitably be rekindled about the future of those smaller communities whose demand levels may not support the costs of upgraded service,' said Hunnicutt. 'As more of you abandon the 19-seat generation of aircraft, which has been the backbone of small community air service, we expect an increasing need of affected communities for you and us to find ways to meet their growing needs.'
Congress, pointed out Hunnicutt, has tasked the DOT to guarantee air service to the smallest communities via the Essential Air Service programme. Hunnicutt urged RAA members to participate in this programme. But today's US regionals are no longer romantic, mom-and-pop affairs happy to do their bit for the community, like a soup kitchen on wings. They are hard-nosed businesses with the sweet taste of profit in their mouths. Why should they be forced to fly to money-sapping destinations, especially when they no longer have the suitable equipment for such thin routes?
It will, however, be difficult to wriggle out of the obligation. Some of the most powerful Congressmen represent the very communities that fear for their aerodynamic lifelines. And they regard themselves as newly armed with an understanding of the dastardly tactics of airlines, especially those which are profitable. Those RAA representatives could find themselves taking on a heavy workload. A weekend in Nassau may well ease the strain.
Source: Airline Business
