Captainmarv

https://www.ch-aviation.com/portal/news/77819-skywest-airlines-sees-crj-550-as-compelling

I know he said it looks compelling and not set in stone but what do you guys think? Would it happen?

treelark

It depends upon the final costs I'm sure. But the 200's won't last forever, there's no replacement for them, and we have a whole lot of them. I bet a 700 with only 50 seats will be quite enjoyable to fly and our passengers going to MiddleOfNowhere USA will be tickled pink to ride it, but what will the CASM be? Fuel won't be cheap forever.

Captainmarv

I agree. No replacements for the aging 200's, and I dont think CRJ or EMB will try to compete in that market just because it's too small. So the "solution" is to retrofit 700's no need on additional ratings so it makes it cheaper for airlines on the aspect of training.

treelark

Yes, but the difference is that the 200's SkyWest has are pretty much all paid for or were acquired so inexpensively that they make the higher fuel per seat costs palatable, and our EAS profitable. Even assuming you only retrofit existing 700 airframes, the higher fuel burn means you better be getting a good fare for those spiffy seats. United has made it clear it's more about having upgrades to give away to MP customers than it is about selling the seat at a premium. However, the range would improve, as would the CG and MTOW issues the 200 has, which would be a good thing. Fewer denied boardings and mishandled gate check bags are better for everyone's bottom line.

But, as CC has already said in the call, our 700s are spoken for at this time. So unless Bombardier is ready to cut us a heck of a deal and United is giving us a long-term contract guarantee, I don't see SkyWest rushing to incur new debt just to get the 550's. It remains to be seen whether or not GoJetttzz pulls it off. Then again, we could announce it Friday, who knows?

TenaciousB

True. The only way I could imagine getting the 550 would be a partner like Delta that wants to have a higher end product than the -200 in a smaller market where the 76 seat 175 would not fill up. Or maybe Alaska. And then if they choose SkyWest for those contracts.

That’s a lot of ifs.