BRENDAN SOBIE / WASHINGTON DC

In bid to stem losses mainline carriers hand over unprofitable routes to low-cost partners

US regional carriers are flourishing in the face of the financial woes felt by the country's majors, as full-year traffic figures show. Mainline carriers are handing routes over to lower-cost regional partners, sustaining sales of regional jets and changing the shape of the US airline network.

The top 10 US regional carriers have all reported double-digit traffic increases for 2002, with average growth exceeding 30%. The top six majors, meanwhile, all handed over unprofitable routes to their regional partners. As a result, while the overall US fleet size has barely changed, regional jet aircraft numbers have risen by 27%. Total domestic traffic fell 3.8%.

The introduction of new 70-seat regional jets into networks of four US majors has sped up this trend. Regional jet operator Trans States Airlines took over all American Airlines flights in three St Louis markets late last year and plans to take over several more in the first half of 2003. SkyWest Airlines took over two United Airlines routes at San Francisco this month, and Atlantic Southeast Airlines is taking over two routes in April from parent Delta Air Lines.

Aircraft such as the new long-range version of the 50-seat Embraer ERJ-145 are also being used to launch routes in the 800-2,200km range. The US Regional Air Service Initiative (RASI) says at least 80 such routes were added in 2002.

Regional jets are also being introduced in small communities across the USA as turboprops are retired. RASI says US regional jet operators now serve 233 airports, 13% more than a year ago. According to Federal Aviation Administration data, regional jets now account for about 160,000 flights a month - 20%of all scheduled US flights, and 80% more than in 2001.

Source: Flight International