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American Airlines Investing In Connect Airlines?!

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I’ve written before about Connect Airlines, an airline startup that intends to fly Bombardier Q400s from Toronto Billy Bishop City Airport (YTZ)to destinations in the United States. The airline is essentially trying to replicate what Porter Airlines has done out of the airport.

Continue reading: American Airlines Investing In Connect Airlines?!

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25 Replies
 Jim
(@Jim)
Joined: 6 years ago

Posts: 250

Much like Delta with REX, I suspect that AA was motivated as much by, they're the only plausible remaining option in the market.


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 dx
(@dx)
Joined: 7 years ago

Posts: 124

I agree- not hard to imagine Connect operating several flights per day to some combination of ORD, PHL and/or DCA to feed AA's network plus serve business/government-related traffic.


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(@Bgriff)
Joined: 13 years ago

Posts: 662

Turboprops aren't "inefficient", though some of the much older ones that American Eagle used to operate may have been. They're pretty attractive on a cost basis, but the US airlines have shied away from them due to reliability and customer perception concerns. Without a direct replacement for the CRJ700/900 and E170/175 available or in the offing (the E2-175 has too high an MTOW for current regional carrier scope clauses), it wouldn't be surprising if we see turboprops make a comeback with at least one of the big US carriers in the near future.


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(@Jeffery)
Joined: 3 years ago

Posts: 1

1) if Connect gets off the ground, curious if it eventually gets Eagalized,

2)it is trying the Porter model that Porter is moving away from as they move to E2s, plus a tie up with AA is potentially something that could provides a steady value, though wouldn't expect massive success

3) AA didn't retire the props for efficiency, on a large number of short routes out of CLT/PHL/LGA would definitely have a cost advantage versus regional jets. But the Dash-8 that remained were starting to reach end of life on cycles and there is a consumer preference against props that may show up on the revenue side (never seen definitive confirmation of that though)


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Diamond
(@irishalan)
Joined: 4 years ago

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Posts: 111

I assume AA has already had discussions with Porter that went nowhere? With their expansion into regional jets they’d seem like a much more logical partner. AA could have connecting traffic at YYZ.


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(@Brian)
Joined: 3 years ago

Posts: 2

maybe but not to National (DCA) no US Customs there - it will need to be Dulles (IAD) exactly like Porter since there is no US Customs office at Bishop (YTZ) unlike Pearson (YYZ)


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 dx
(@dx)
Joined: 7 years ago

Posts: 124

Thanks for correcting this- doubt IAD will be involved since that's UA's hub, so maybe substitute JFK if AA is willing to loan a few of its slots.


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 Mark
(@Mark)
Joined: 7 years ago

Posts: 472

I legitimately LOL*d at the “hi, Tim!” comment. It’s your ability to work humor into analysis and travel stories that I love so much.


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Diamond
(@vt-cie)
Joined: 5 years ago

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Posts: 298

I’m sorry, I did not get the reference. The only Tim I know on OMAAT is Tim Clark of Emirates. Anything I’m missing?


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(@Steve)
Joined: 5 years ago

Posts: 120

Tim Dunn is the resident Delta fanboy on this comment page as well as numerous other travel blog sites. DL can do no wrong in his eyes.


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(@CP@YOW)
Joined: 17 years ago

Posts: 183

It was recently announced that US pre-clearance is coming to YTZ by 2025.


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Gold
(@goforride)
Joined: 4 years ago

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Posts: 0

So is AA investing in Waltzing Matilda?


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(@ad123)
Joined: 3 years ago

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Posts: 0

I wish they would fly from YUL. We need more competition on YUL-NYC....


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Gold
(@goforride)
Joined: 4 years ago

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Posts: 0

There are so many absolutely hilarious things here:

First of all, when a small or non-existant start up talks about hydrogen or electric planes, you know it all a scam.

Can you see the hydrogen fueling facility at Billy Bishop?

Then Connect says they're going to buy 75 ATR's retrofitted to hydrogen.

There isn't a snowball's chance in hell that will ever happen. That would take a complete re-engineering of the plane and there's no way on God's green earth that a 1980's technology plane, with 1980's manufacturing precesses is going to be completely re-certified.

All that aside, if AA is going to take an "equity stake" in Connect (or is it Waltzing Matilda), at what point does the pay scales for the pilots of the other regionals that AA come into play?

I suspect that the reason AA is interested is that Connect will buy AAdvantage miles from AA.


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Gold
(@goforride)
Joined: 4 years ago

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Posts: 0

The market suggests otherwise.


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 XPL
Diamond
(@xpl)
Joined: 4 years ago

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Posts: 210

You are right. But AA wouldn't be AA if they were to do the logical thing.


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(@DesertGhost)
Joined: 6 years ago

Posts: 180

You give Tim Dunn a big shout out, and he doesn't write anything. How disappointing! LOL!


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(@Carey)
Joined: 3 years ago

Posts: 2

What not just link up with Porter? They are growing and adding jets too plus they serve more than just Toronto,


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Gold
(@gregsdc)
Joined: 5 years ago

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Gold
(@gregsdc)
Joined: 5 years ago

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Posts: 0

Was thinking the same thing...hope he's okay!


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(@aaway)
Joined: 8 years ago

Posts: 20

Bgriff is somewhat on the right track. Passenger perception was a key driver for Delta competitors feeling compelled to react to the introduction of RJs by defunct Delta Connection carrier Comair during the early 90s. The DL/OH partnership gave DL a valuable head start in scaling RJ usage across the DL network via CVG.

AMR was somewhat of a late adopter of RJs due to pilot contact restrictions ("scope" clause(s)) with ALPA (AA Eagle pilots' union). Eventually, AMR received the contract relief required to induct RJs. AMR also managed to subvert the scope clause by convincing Embraer to produce the seat capacity busting EMB-135.

Mr Schlappig is also correct that T-props "became inefficient", though through rote of FAA rulemaking. On that front, there were three changes in FAA rules that made operating T-props less and less lucrative:

(1) The mid 90s change for commuter/regional air carriers being certified to operate under the old FAR 135 rules to mandating operations under FAR 121 rules. That change made certain training requirements, aircraft equipage, and aircraft maintenance routines more expensive.

(2) In the wake of the 2003 crash of an Air Midwest B-1900 at CLT, the FAA mandated changes to weight and balance calculations. These changes were particularly pernicious for commuter turboprop operators as those aircraft types became restricted to a maximum of number of passengers below the actual seat count of a given T-prop commuter type.

(3) Finally, the 1500 hour rule (in the wake of the Colgan Air crash at BUF in 2009) in part made recruitment of flight crew for regionals more difficult, and made the existing pool of qualified flight crew more expensive.


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Diamond
(@jetbluefanboy)
Joined: 4 years ago

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Posts: 75

@Mark
I completely agree.


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 BBK
Diamond
(@bbk)
Joined: 5 years ago

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Posts: 0

I can see CM worrying if this Airline decides to call its loyalty program 'ConnectMiles'


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(@Chris Chapman)
Joined: 3 years ago

Posts: 1

Connect was stopped by the FAA twice for serious safety issues. Their history speaks for itself as does it’s owner and management team. Connect should never be allowed to fly a single aircraft ever again. That Smart Start Captain pay was a scam. John Thomas has a poor history.


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(@EnviroTO)
Joined: 3 years ago

Posts: 1

Porter flies to United (IAD, EWR), Delta (BOS), Jetblue (BOS), Southwest (MDW), and Frontier (MDW) but strangely does not have any connection with American (LGA, JFK, PHL, ORD, DCA, CLT). Connect would fix this.


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