Originally Posted by
iker
Let's see if we can continue bashing UA management for downsizing their CLE base, thereby shrinking future profit?
Per a WSJ article (and they do do their homework), this isn't a problem that UA is facing alone. With a huge shortage or airline pilots, pilots will leave express carriers (where they are paid less) for more lucrative offers. Supply and demand. This is good in many ways. Wages for pilots and other labor groups will lift up. They've been depressed for many years. It will lead to higher airfares, as capacity will shrink, which airlines can use to cover increased labor costs. The bad news is that many communities will end up with fewer frequencies and destinations or lose service completely.
I for one don't bash UAL for dumping the CLE hub. Running a RJ hub, with ORD next door, made no sense. Frankly, I'm surprised it did not happen sooner.
This said, I will comment that Delta saw this coming, and went to a strategy of "upgaging" which allowed it to deal better with this issue while also reducing its CASM. AA did this to a lesser degree. Jeff? Well he planed to add only 17 E-175s per discussion in the 4Q 2013 quarterly results, 27 E-175s per the fleet plan (I don't know which is correct). Jeff now has the most capacity in RJs and no plan, other than shaving ASMs, to try to address it.