GUY NORRIS / SAO JOSE DOS CAMPOS
Sluggish passenger market and weaker than forecast demand for second-hand turboprops prompt change of heart
American Eagle is reconsidering its plan to move to an all-jet fleet by 2003 as it copes with a softening passenger market and weaker than expected demand for second-hand turboprops. The studies come as the airline boosted its regional jet fleet to 100 aircraft on 22 August with the delivery of a fourth Embraer ERJ-140.
The airline says it is placing renewed emphasis on plans to retain a small fleet of turboprops. Tom Bacon, American Eagle senior vice president for marketing and planning, says: "We had a five-year plan to be all-jet, but there are a lot of markets that are good with turboprops. So we are considering maintaining a small fleet of them." The carrier adds that, in the face of previous difficulties disposing of its Saab turboprops on the used aircraft market, it is "better to use an existing asset".
Although details are not yet decided, American Eagle is studying retaining a small fleet of Saab 340Bs from its current fleet of more than 100 aircraft, plus a core fleet of more than 10 ATR 72s. The Saab fleet is likely to consist of the younger, lower-time aircraft now in service, while the bulk of the ATR fleet will probably be made up of the later ATR 72-500s.
"The ATR 72s particularly are very efficient turboprops and are well suited for places like the Caribbean," says Bacon. The remaining ATR strongholds are therefore likely to become Miami and San Juan with possibly smaller Saab 340B outposts in Los Angeles and Dallas/Fort Worth.
Against this background, American Eagle is continuing to ramp up its regional jet deliveries and related route developments. The latest ERJ-140 is one of 15 to be delivered by the end of the year when the company expects to have 115 regional jets in the fleet. "Deliveries are slightly ahead of schedule and, in some cases, we have accelerated deliveries," says Bacon.
The regional fleet, which will be augmented by the arrival of the first of 25 Bombardier CRJ700s in September, is due to grow to almost 260 by late 2004.
Bacon says that regional jet deliveries are expected to remain stable because of the positive effect their operation is having during a difficult time for US airlines in general. "We have definitely felt the downturn, but because of the regional jet operation we have seen it less."
Bacon chiefly attributes this to the 50 new routes that American Eagle has opened up with the Embraer aircraft over the past three years. "It's a fact that we've used it to grow into new markets that American Airlines and Eagle haven't been in before. It's new business and the customers like not using hubs." Bacon's comments come as American Eagle inaugurates services with the first ERJ-140s out of Chicago.
Source: Flight International
