Originally Posted by
BoilerUP
How does cheap oil "threaten" 76 seat aircraft, or even 717s?
Either a 76 seater (or 717) is financially viable due to load factor and yields, or its not. Higher oil prices can make a smaller aircraft less financially viable due to its higher CASM, but I truly fail to see how lower oil prices can make a larger aircraft less financially viable for the same reason.
Because regional labor and operating costs are so cheap compared to mainline. The only equalizing factor is the 200 nuts a lot of gas proportional to it's revenue. At low gas prices a 717 with mainline costs can't come close to competing on routes less than 500 mi.