Prepare yourselves… 2023 AEs
08-05-2023, 01:17 PM
#4101
Gets Weekends Off
Joined APC: Dec 2017
Posts: 2,768
In my opinion, the regional jet never made money on its own. Look around - how many pure RJ operators are there in the United States? They succeeded because their cost was buried in the network effect.
The RJ claim to fame was being available in large numbers right around 9/11 when airlines decided their capacity was too much. Also, in the late 90s there was slew of turboprop accidents that soured the view of the TP (I flew the ATR and liked it, so it's not turboprop hating) so the RJ was seen as a "safer" solution often using a jet bridge that provided strong revenue. Well - that's until SWA decided to expand after 9/11 and the majors shrank. Suddenly it became much cheaper to drive from Evansville, IN (for example) to Indy and take SW than to take an RJ and connect in a hub.
So suddenly the RJ became a high cost jet that was competing against SW. Airlines had to lower prices to match SWA on those routes, and any increased yield from the RJ (by going from a 100 seat DC9 to a 50 seat RJ) evaporated.
I don't think the major airlines ever broke out the profit/loss of their RJ operators or the RJ operation - I could be wrong though.
I'm glad if we can take the high cost RJ flying an bring it in house with a A220 or 717 - movement for a fair bit of the seniority list and we can make even more profit.
The RJ claim to fame was being available in large numbers right around 9/11 when airlines decided their capacity was too much. Also, in the late 90s there was slew of turboprop accidents that soured the view of the TP (I flew the ATR and liked it, so it's not turboprop hating) so the RJ was seen as a "safer" solution often using a jet bridge that provided strong revenue. Well - that's until SWA decided to expand after 9/11 and the majors shrank. Suddenly it became much cheaper to drive from Evansville, IN (for example) to Indy and take SW than to take an RJ and connect in a hub.
So suddenly the RJ became a high cost jet that was competing against SW. Airlines had to lower prices to match SWA on those routes, and any increased yield from the RJ (by going from a 100 seat DC9 to a 50 seat RJ) evaporated.
I don't think the major airlines ever broke out the profit/loss of their RJ operators or the RJ operation - I could be wrong though.
I'm glad if we can take the high cost RJ flying an bring it in house with a A220 or 717 - movement for a fair bit of the seniority list and we can make even more profit.
Ive heard everything from rjs being a network filler/buster, a loss leader, and a market share stealer. My guess is its all three and we make more with the RJs than without. However, the RJ market will have to innovate or shrink to pre '98 levels and thats where i think its heading.
08-05-2023, 01:47 PM
#4102
Gets Weekends Off
Thread Starter
Joined APC: Apr 2020
Posts: 2,362
RJs will whittle down to whatever lifers staff the left seat and Propel/Aviate etc cadets staff the right seat. They’ll never go fully away in case the market changes and there’s a chance to regrow the regionals. They don’t gain anything fully canning a regional as long as a few dozen planes can hang on just in case.
08-05-2023, 02:15 PM
#4103
Layover Master
Joined APC: Jan 2013
Position: Seated
Posts: 4,320
With the amount of time and capital that Delta and United are putting into Propel and Aviate, regionals aren’t going away.
08-05-2023, 05:28 PM
#4104
Gets Weekends Off
Joined APC: Jul 2015
Posts: 314
RJs will whittle down to whatever lifers staff the left seat and Propel/Aviate etc cadets staff the right seat. They’ll never go fully away in case the market changes and there’s a chance to regrow the regionals. They don’t gain anything fully canning a regional as long as a few dozen planes can hang on just in case.
ill tag on until we non-regional pilot unions close the scope on the small end this is the ultimate over-pressure relief valve majors are going to count on in volatile times.
08-07-2023, 05:01 AM
#4105
Gets Weekends Off
Joined APC: Feb 2022
Posts: 633
SkyHub said they are going to work on the AE memo this week - FYI for those wondering 
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