Extra Maintenance or Subsidiary?

Hello folks,

What are people’s thoughts in relation to bringing in a 4th maintenance category.

I currently operate 737-800’s, Emb 190’s and 787’s. my subsidiary operates dash 8’s to smaller airfields, is it worth merging the two and getting a higher maintenance bill?

It just seems a bit of an effort and cost to effectively maintain 2 x airlines which need interlining with multiple others.

What are people’s thoughts on this?

I would say it depends on the size of your 2 respective companies. Server and name?

Why not replace E190s with 735s or 736s? That way they are the same cat as the 738s?

For some reasons I prefer to maintain a policy to restrict the number of maintenance-categories to three. The advantage of a subsidiary outweights disadvantages by far. My most important regional-feeder operates Dash 8s, Fokker 50s and Let410s and it is fine that these aircraft are operated separately from my main airline.

However I know some players who have no problems to operate a higher number of types within one airline. I think that it really depends on your views.

The airline in question is Pacific Australian Airlines and Pacific Australian Regional in Gatow.

I looked at changing the Embraer 190’s to 737’s however they are unable to be easily swapped, I have about 1000 flights with them from MEL but due to the turnaround times being 15 minutes longer it does not work, no slots available. Another aircraft with a 30 min turnaround suitable as Embraer 190 replacements with also a smaller economical regional plane? The 170 just does not cut it.

Keep it easy: you are operating brand new aircraft and your maintenance cost should be less than 20% of your weekly expenses.

Take this value of both airlines and calculate the famous 15% maintenance cost surplus

Subtract roughly 70%  of costs for interlining for your regional airline

Subtract a value for office managers and other airport staff which you don't need any more.

You can see roughly your weekly "disadvantage" for one instead of two airlines.

Add the once in a lifetime cost to fire all people from your regional airline.

Compare these costs to the big personal advantage of having to manage just one airline.

There is a hidden cost involved - you are more inconvenient in managing your company. Personally I find it tedious to maintain companies

In my opinion it is better to absorb the 15% extra bill if you are operating a fleet of new planes.