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Originally Posted by DryMotorBoatin
You can't have an MBA in economics.
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United does not like CRJ200s. Skywest and company should be very worried when their time is up. I really doubt there will be new 50 seat flying, maybe even replacing. Reduced capacity with more 70+ seaters is the future of UAX.
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Correct me if I'm wrong but it was fuel prices that made 50 seaters uneconomical to operate? Will they become economical again if prices return to pre-2008 levels?
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The CRJ is just as economical as any other, if used properly...
And thanks, minimumwage for the brilliant insight? |
Originally Posted by ExperimentalAB
(Post 671326)
The CRJ is just as economical as any other, if used properly...
And thanks, minimumwage for the brilliant insight? |
Originally Posted by ExperimentalAB
(Post 671326)
The CRJ is just as economical as any other, if used properly...
When revenue is weak like it is in the current economic environment, then there are fewer passengers to feed into the hub and creates a lack of support for the frequency of flights that RJs have been heralded as providing communities...regardless of the price of fuel. |
Naw I've resigned myself to being wrong in all things Aviation LoL
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Originally Posted by BoilerUP
(Post 671330)
And on the whole, their purpose is the feed passengers (and their revenue) into the hub.
When revenue is weak like it is in the current economic environment, then there are fewer passengers to feed into the hub and creates a lack of support for the frequency of flights that RJs have been heralded as providing communities...regardless of the price of fuel. |
Originally Posted by ExperimentalAB
(Post 671333)
Yes, but frequency and efficiency are different animals in this respect...
For a major airline subcontracting small jet lift, the measure of that lift being "economical" is if the benefit it provides (revenue into the hub) is equal to or greater than its cost. A decrease in fuel price obviously lowers a 50 seater's CASM, but if revenue decreases more than the cost of fuel then you're right back to it being an uneconomical airframe because costs exceed revenues. If there isn't enough revenue in a market to support the economics of multiple 50-seaters, there may be enough to support a reduced number flights on 70-120 seat aircraft because their economics are better. That reduced frequency on larger aircraft means fewer in-service 50 seaters. And yes, I'm already scheming my way into airline management...:D |
Originally Posted by John Pennekamp
(Post 671215)
That's the one I'm hearing... from ASA management. Apparently SKW wants to buy Lynx and RAH is interested.
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