They can't even keep those contracts. By changing the planes from 19 to 9 seats, they've driven the enplanement costs so high that other airlines are able to undercut them on the contracts (which are typically 2 year contracts). Additionally, their reliability is so bad, that local governments are supporting anyone but GLA.
No one is competing with them to rural destinations around here. Where are you seeing this local government backlash? I'm curious more than anything.
The only carrier that's sized right to even attempt it would be Skywest and they're too smart to play that losing game.
Air Winnie isn't gonna do it. They have their areas and they don't appear to be moving in on any GL turf out here anywhere other than the usual higher profit routes they've always flown against them, like winter ski town stuff.
I'll admit I don't look at the whole country on this stuff, but where have you seen a local government kick out GL for another carrier?
The GL route map hasn't changed much around here since they took over what Continental Express abandoned in the early 2000s and then Mesa flew and abandoned and flew and abandoned up against COEX and then later by themselves as they went down.
GL just slowly ate all that stuff up and hasn't had a serious rival to most of those cities around here, in over a decade.
Interestingly in the interview that's floating around out there with the head of Rocky Mtn Airways well after he sold out to COEX in the 90s, he clearly states that the routes they flew were unfixably unprofitable after deregulation and thus why he sold. That hasn't really changed in the intervening three decades. Just different companies that keep trying it thinking they can make it so.
The flip to 9 passengers clearly shows the problem. You can't get any economy of scale at that size. You also can't make a twin turboprop operate cheaply enough at that headcount to make a profit without subsidies.
Plus the flying public doesn't really like turboprops and wants an RJ. No way you can do some of these routes with an RJ and make it profitable. Some of these towns simply don't have the passenger count to make anything work without a subsidy and there won't be any competition ever at their airports. The only direct competitor is driving four hours (maximum) out of a larger airport and sometimes much less.
Tough biz, small towns and air travel. I wouldnt want to be responsible for making it work out on a balance sheet. Wouldn't take much to tip over the apple cart.
so that's all that matters to me!
