RJ's unprofitable
04-03-2008, 09:48 PM
#1
Gets Weekends Off
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Joined APC: Jan 2006
Position: Student Pilot
Posts: 2,277
RJ's unprofitable
You know I was reading in the Regional thread that one guy says that he is fed up with hearing that RJ's are unprofitable. Only one guy, RamenNoodles actually hit the nail on the head.
You have to consider RSM, load factor, origin & destination + feasibility studies and other variables in order to really determine whether RJ's are a viable and profitable service on a certain routes.
Any other input?
atp
You have to consider RSM, load factor, origin & destination + feasibility studies and other variables in order to really determine whether RJ's are a viable and profitable service on a certain routes.
Any other input?
atp
04-03-2008, 11:28 PM
#2
APC co-founder
Joined APC: Feb 2005
Position: B777
Posts: 5,853
Consider that most RJ's are operated in fee-per-departure arrangements with fuel being a pass-through expense. This means that RJ operators get paid a set fee to operate the flight and don't pay for the gas.
For the purchaser (the UAL, NWA, DAL's of the world) the fee-per-departure model is a money loser when oil is at $100/barrel. RJ's are on the cost side of the balance sheet to be certain. The question is; what is the feed worth to the network?
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