Horizon Air is evaluating whether to abandon its Bombardier CRJ700 regional jets in favour of a single large fleet of Q400 turboprops, as it looks to reduce operating costs in the face of continuing high fuel prices.
The evaluation was revealed during an earnings call by Horizon parent Alaska Air Group last week, according to Flight's Commercial Aviation Online.
Flight's ACAS database says the airline has 21 CRJ700s, 18 Q200s and 33 Q400s. Horizon has a further 15 Q400s on order. The Seattle-based US regional has been undertaking a fleet re-organisation, as it is already in the process of retiring its 37-seat Q200s in favour of the 74-seat Q400. Last year the airline also re-integrated nine CRJ700s into its fleet that had been allocated to flying or Frontier.
"We believe the Q400 has the potential to improve the economics of much of the flying we're doing with the CRJ700 in the current environment of high fuel costs and downward pressure on yields," says Horizon Air chief executive Jeff Pinneo.
"The emerging thesis is that the economic benefits of further fleet simplification, moving from a mixed fleet of CRJ700s and Q400s to a single-type Q400 fleet may outweigh the benefits of flexibility that our current mixed supports," he adds. "Accordingly, we're actively investigating the pros and cons of a single-fleet concept."
If the airline decides to go ahead with the move, it is not clear whether it would result in additional Q400s being ordered or whether its current backlog would be sufficient. Alternatively it could acquire some or all of the fleet of 27 Q400s that SAS Group is disposing of following its decision to ground the aircraft last year after a series of landing gear problems.
Horizon's evaluation is further confirmation of the turboprop revival, which was underlined by ATR's record sales last year of 113 orders. Bombardier has had a strong 2007, having sold 78 Q Series aircraft in the first three-quarters of its 2008 fiscal year.
Additional reporting by Scott Hamilton in Seattle
Source: Flight International
