Originally Posted by
njd1
The 550 is short legged, particularly as compared to the XR, and as a dual class aircraft depends on dual class fares for profitability. Business class travelers aren't coming back as soon as one might think. I know several sales people in other industries who are not only on a company-issued travel ban but their customers have told them to stay home as well. With conventions not allowed either, I just don't see how they're going to fill 550s unless they intentionally operate them at a loss.
My deadheads between EWR and IAD lately have been 175's operated by (guess who) Republic. They've been maybe half full. The one home the other morning was about 25% full. Operating a 175 on a route that is best served by a completely-paid-for E145 is just stupid, particularly when 175s are limited by scope -- those assets are best used elsewhere. And perhaps that's the only saving grace for C5 or C5 in EWR specifically -- loads will be such that 50 seat aircraft make more sense on certain city pairs and we'll be brought in to fly those while Republic takes the more heavily traveled routes.
I agree, the 145/200 and the 550 are both niche aircraft but for different markets. The 145/200 for EAS and other low density/low fare routes and the 550 for low density/high fare routes.
The XR has the advantage of being able to do longer stage length low density routes but for a network carrier those routes might be more economically served from a different hub.
One key question is does the 550 really serve the market well or is it simply a Frankenstein monster cobbled together out of spare parts to comply with scope clauses, much like the 140?
Prima facie, flying paid for airplanes nearly full should be more profitable than flying leased airplanes half full. However the accounting treatment of long term operating leases as well as their effect on the balance sheet change that calculus somewhat. Combine that with multiple contractor arrangements and the layers of financial engineering keep getting deeper. RW also has relatively high minimum block hour requirements in the CPA which is another reason they are flying more than EV and C5.