This is really simple…

INC is just optimizing their profitability.

XJT hasn’t been profitable for a long time and still isn’t based on the last INC earnings call. So They try to discontinue unprofitable flying. This is no different from the SkyWest side where all the UA 700 go away mostly because they are just not very profitable.

Once those aircraft EMB145 or CRJ 700 come of contract it is really about managing the tail risk of the lease financing - a place where many of the CRJ 200 already are. Ideally, they match any contract extension against the residual lease timeline which tends to be 2-3 years. And that is exactly what you see. After that it is all gravy if they get extended – or INC returns the plane, adjusts the work force via attrition and goes home happy.

So they are going for shorter term opportunities that also happen to be priced at a premium. Again, no difference between XJT and SKYW. A lot of the 50 seater flying at SKYW is short-term as well. I don't think UA is thrilled about this approach but that’s why they are propping up C5. Presumably they are willing and able to operate at lower price than INC wants to do either under XJT or SKYW. Note that a lot of the "new" SKYW flying is not with UA but AA....

Personally, I believe the 50 seaters will be here for a lot longer than everyone wants to make us believe. So these 2-3 deals will continue to roll barring any major economic downturn.

As for new dual class cabin flying, it simply comes down to unit cost. Pilot productivity is higher at SKYW than XJT and as a result unit cost are a lower (PBS vs. hard line with vacation touching and I am sure a host of other things). So the 175 stuff goes there – very basic economics really.