Originally Posted by
ZeroTT
If there’s a market that supports 40 seats/flight and revenue/flight exceeds cost/flight it’s a winner. CASM is a useful metric but it’s not particularly helpful for deciding where to stop service at the margins. That last crj flight may be profitable where a 737 wouldn’t be.
It's actually very useful if we're simply looking at the cost, not profit. That's exactly what I was referring to in all the posts. Cost per Available Seat Mile will always be lower at the regional compared to the mainline.
Salaries, Benefits, Fuel Cost and hence Taxes are bound to be lower.
Now, RASM and net profit are a different story. It does get more complicated.