Re: Too many RJ\'s?
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is that because customers don't like flying on them, and from a financial point of view that seems like a pretty stupid answer to be buying and operating more expensive aircraft to me.
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One of the most important things in this industry is the passenger's percieved sense of security. Average people think prop=death trap. Those of us better educated in the field know that the turboprops are just as safe as the regional jets, but we can tell the pax this countless times and it might not sink in. As far as the RJs being more expensive, you have to look long term. As the turboprop fleet ages, you'll start running into ADs and higher maintenance costs. So there is that problem to deal with. As a general rule, most TP have fewer seats than the RJ, so the ASM are lower. In order to keep the seat milege up, you would need to operate more a/c. Then there's the fuel efficiency and range of the RJ. Finally, most regionals are paid through their contracts with the major airlines. They really don't have to worry about costs per available seat mile since most get a flat rate anyway, and the tickets are sold at major airline prices. A lot of industry analysts (some of which I wonder how they tie their shoelaces in the mornings) think that Independence Air will flop b/c of the CASM/LCC price structure. It will be interesting to see if Independence will be able to profit with LCC prices and RJ costs. I think that will be the major challenge facing regionals if they have to strike out on their own.
