...Both Bombardier and Embraer have publicly predicted that these beleaguered US regional airlines are poised to buy hundreds of new aircraft. Embraer confirms it is in talks with at least five US regional airlines on deals for a total of more than 400 aircraft this year.

Indeed, both airframers are counting on the US orders this year, as regional aircraft sales are expected to decline elsewhere in the world. If the orders are consummated, they promise to begin a fundamental reshaping of the US regional airline sector, with the increasingly uneconomical 50-seaters exchanged via scope clause relief for 70-80-seaters...