Originally Posted by
gojo
Nope, not even close. Mainline has restrictive scope. Without it regionals would be flying anything that makes them more money. Cost of the asa and performance is the main criteria for regionals, therefore no leverage.
Do you mean ASM?
Regionals serve several functions. Besides the whipsaw factor as noted in my previous post, they also can serve markets not financially feasible for mainline routes. Clearly it's more economical to fly a full A320 than a full E145, but that economy of scale quickly disappears when the A320 only carries 30-50 passengers yet costs the same to operate.
Regionals allow airlines to reach markets otherwise uneconomical to service.