As you know, I’ll be back on Monday with an all new post. There have been a lot of news stories in the airline world over the last two weeks, so I want your help in narrowing down which ones to write about. What story most interested you while I was gone?

I’m still out on leave, but I’ll be back soon. Enjoy this post about small communities . . .

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Over 70% of US airports with commercial air service are served exclusively by regional airlines. And almost all of those airports reside in or next to small or midsize communities. Unfortunately, both the communities and regional airlines face head winds in the coming years. New regulations coupled with the potential for additional taxes and reductions in subsidies will hamper the regionals’ ability to grow and operate with sustained profitability. This will have a direct effect on the small communities that regional airlines serve.

Most people have never heard of Pinnacle Airlines, ExpressJet Airlines, or Republic Airlines but have flown on them many times. An average regional airline flies turboprop aircraft or jet aircraft with less than 100 seats on a contract basis for mainline carriers such as United or Delta. Although separate companies, the regionals usually fly under the mainline’s brand such as Delta Connection or United Express. In most cases, Delta and United take care of scheduling, promoting, and selling tickets for the flights while the regional takes care of providing the primary product. Now, let’s hop into some of the issues.

One of the bigger impacts to the industry will be felt when new rules regulating pilot duty time kick in. (Cranky did a good job of breaking down this issue in a previous post.) These new rules were introduced to address ongoing concerns about pilot fatigue. Pilots will now work a little less and get more rest. This makes sense. Who doesn’t want a well-rested pilot at the controls?

But there is a flip side. The new rules governing duty and rest periods will force carriers to hire more pilots if they want to run the same schedules they have today. The savvy regionals will work diligently with their mainline partners to reoptimize schedules. But they will not be able to totally avoid higher pilot costs. Regionals will have to pass on the additional costs to their mainline customers to remain at current profitability levels.

Another new upcoming regulation will increase the minimum number of hours of experience a pilot needs to fly for an airline. Currently, a pilot only needs 250 hours along with a Commercial License to get hired with a regional airline. In a couple of years, this will increase to 1,500 hours and require an Airline Transport Pilot (ATP) certificate.

On the surface, this seems like a no brainer. More hours = more experience = safer flying. But there isn’t research proving that pilots with 1,500 hours consistently fly safer than someone with less experience. When this steep increase is implemented, it will create an artificial pilot shortage. Some pilots pay out of pocket or through loans to get to 250 hours. Getting to 1,500 hours on one’s own dime will push a bunch of would-be pilots out of the market. The shortage will push up wages to account for the lower supply and result in additional expenses.

In the fall of 2011, the Obama administration proposed creating a new $100 departure tax for all air carrier departures and general aviation jet departures. The proposal also increased security taxes on airline tickets and was given to the super committee for consideration. An impressive coalition of 30 organizations including airline trade groups, general aviation groups, unions, and manufacturers quickly got together to fight the proposal. The rally cry is that airlines and passengers already pay higher taxes than alcohol, tobacco and guns which are intentionally set high to discourage their use.

It appears that the White House quietly backed off the proposal because of the backlash it received during an election cycle. If the proposal was revisited and passed, it would have a disproportionate effect on regional airlines that carry fewer passengers each flight than their mainline counterparts. It’s much cheaper to spread $100 over 200 passengers than over 50.

Another debate in Congress has been the over subsidizing air service to small communities through the Essential Air Service (EAS) program. This program is designed to help provide small communities with air service that cannot, due to such low demand, support itself. I expect a haircut or possibly elimination of this program. Accordingly, many routes would cease to exist.

In isolation, each of these challenges would have a much smaller impact on the industry. Together, these policies would have significant negative economic effects and force airlines to cut flights on underperforming routes. And each flight lost in a small community has larger implications due to the community’s relative size.

These changes will burden an industry already struggling with consolidation and high fuel prices. Pinnacle is flirting with bankruptcy. SkyWest and Republic’s financials have been limping along since their acquisitions of ExpressJet and Frontier respectively. American Eagle’s anticipated spinoff from American Airlines will increase competition in an already saturated market. We’re seeing a steep decline in small jets which don’t work with today’s fuel prices. Turning a good profit in the regional industry is proving difficult even while their mainline counterparts are starting to enjoy being in the black.

Some municipalities and the airlines will come up with creative solutions to mitigate the effects. They will also need to continue lobbying the government to implement policies that have positive economic effects. Regardless, it appears that the end result will be fewer options in small communities.

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Matt Tregre is an airline enthusiast and has held positions in finance, revenue management, pricing, customer service, and baggage tossing with stints at Southwest, ExpressJet, & Pinnacle. During school, he developed marketing plans for small airports. He now works in revenue strategies for a corporate aviation company and greatly misses having flight benefits.

[Original photo via Wikimedia Commons user Paranomia/CC 3.0]

I decided to hold the last Emirates post from Nate until I was on paternity leave. You can see his report on the flight out to Dubai, Dubai Airport, and the flight back if you haven’t seen them.
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Probably the best thing about my trip to Dubai was building an itinerary that put me on the Boeing 777-300ER one way and the Airbus A380 the other. Not many travelers have a keen sense of their surroundings when they fly, so this presented a great opportunity to discuss the differences in the two aircraft as Emirates expands and offers both types on routes. I flew the 777 out of San Francisco for 15 hours to Dubai in Business and First Class, and then returned to New York JFK from Dubai on the A380 in Business Class. I found some fairly interesting differences in the two planes the way Emirates configures them.

Seating layout/arrangements
The 777 was in a typical 2-3-2 layout while the A380 had a very interested staggered layout of 1-2-1. Some rows had window seats with a small walkway to the aisle and others had an aisle with no seat in the window. The middle section either had two seats next to each other or two sitting on the aisle separated. The seats then rotate their position, giving each customer access to the aisle. This was a very nice feature as the A380 gives customers much more overall “area” for their individual seat, whereas the 777 you still had a neighbor – and the privacy screen really didn’t block much.

I could still watch my neighbor’s TV for most of my flight. I did select the bulkhead on the 777 and I had more wiggle room to get in and out, but the A380 still wins hands down. The 777′s “traditional” layout is much better if you are traveling with a group of friends or family, as the A380 seems to be designed more for the solo traveler. The other downside to BOTH aircraft is the aisle seats – there is still traffic up and down the aisle, so there’s a risk of getting interrupted while trying to sleep.

Service
One problem Emirates faces with the A380 is that there are a LOT of flight attendants . . . 26 to be exact. The Business Class galley is located in the back of the cabin, so you get a lot of foot traffic. While that can be nice (always someone going by that can you something) it did take time to do a full service for the 55 passengers (out of 76) in my cabin. I also can’t tell you the name of the flight attendant assigned to my section. The 777 provided excellent service as only 2 or 3 flight attendants worked my side of the airplane and I can remember their names. Overall, the 777 service seemed much more efficient.

Boarding/Deplaning
One would think boarding 500 people on an A380 would take awhile, but Emirates seemed to have this one down pat. Most of us in Business Class were in the lounge up until about 30 minutes before departure and found a short line for the premium cabins versus economy. In the A380, I didn’t see a single economy class customer. On the 777, while we had separate lines, we boarded through the same jet bridge. There was a lot of foot traffic through the 777 cabin while boarding, but the flight attendants kept the economy customers moving through, and were able to serve a pre-departure champagne service without any issues. Deplaning was equally fast, as Emirates holds back each respective cabin until those passengers are clear, and in New York we deplaned by the 2nd level. Its hard to pick the 777 or the A380 has both were very efficient.

Sleep
The A380 has a fully flat bed while it’s an angled lie flat bed on the 777. Both seats appear to be the same design and configuration except for the footrest on the A380. On the 777, your seat drops then extends out, and at 6’1″ I slept like a baby. I also really enjoyed the storage space/cut outs in the seat that also meant I had shoulder room. The A380 had a cubby hole for feet which probably helped keep rusty-sock smell from the cabin. But on the 777, it was hard to tell you weren’t lying completely flat. I’d also like to point out that I departed San Francisco at 5p and arrived in Dubai at 7p (next day) and did not feel jetlagged. I only preferred the A380 seat over the 777 because I didn’t have someone directly beside me.

Economy Class
Here’s where it can get painful.

The 777 was originally designed for 9 seats across the cabin, but Emirates has 10. So your butt and shoulders may be making contact with your seatmate for the next 13 hours. At least your knees and feet will be comfortable, as Emirates provides a few more inches of legroom. The A380 has standard seat width, but the legroom isn’t nearly as good as on the 777. In the row I tried out on the A380, the window felt a little more cramped. Both Economy cabins offer in seat video and universal and USB power ports, so even if you are stuck in the 777 in coach, you will still have plenty to keep you busy.

Here are some more pieces for comparison.

The Winner
Interestingly enough, I really enjoyed the 777 flight over the A380 flight. The A380 bar really stands out, but the service was much more consistent on the 777. The foot traffic on the A380 can (and does) stand out, so if you want to avoid it, then try to sit in the forward section of business class. Anyone who pays for Business Class (or upgrades) will not be disappointed. This airline does an amazing job and if I had the budget, I’d gladly fork out $12,000 for this type of service.