Thread: NWA or DAL
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Old 12-10-2007 | 06:47 PM
  #17  
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FlyByCable
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Originally Posted by DAL4EVER
FlyByCable,

With oil hovering near $100/barrel let's see if no regionals go away. AA is looking to divest Eagle, CO already did that to ExpressJet and DAL is considering the sale of Comair. The RJs made money when oil was cheap and yields were much higher than they are now. The RJs typically break even between 12-18 cents a seat mile. With yields at 10 cents they lose many every they depart. The RJs I believe will be replaced with larger RJs but many smaller markets will lose service. The turboprops may make a resurgence but there will be regionals that don't make it or are acquired by larger regionals for economies of scale.

Either way they aren't a sure thing. That thinking would have had you riding Enron stock all the way to the end.
I'll take you word for the economics. When the larger RJs show up, they will be flow by the regionals.
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