The introduction of 50-seat jets revolutionised regional air travel and the latest generation of small jets is poised to push the boundaries even further
Few would argue that regional jets have represented one of the true bright spots of US commercial aviation during the past decade. Were it not for small-capacity turbofan aircraft such as the Bombardier CRJ and Embraer ERJ families, air service at many US communities would virtually have stagnated in the post-11 September downturn.
The first-generation products of Bombardier and Embraer brought the many promised benefits of deregulation to small and medium-sized cities when they were introduced in the early 1990s. US-based regional jet operators today link 270 North American airports, encompassing a network that includes more than 1,500 individual carrier routes. It is an impressive total, considering the regional jet did not carry its first revenue passenger until 1993.
More services
At most US airports, regional jets have almost single-handedly expanded air service options that would otherwise have been impossible with larger-capacity aircraft, providing more competitive schedules and significantly lower airfare options for millions of travellers. In 2003, regional jet operators announced 165 all-new routes, roughly 75% of which represented first-ever nonstop flights. During 2004 there was even more service growth, with over 200 new carrier/hub options announced by US airlines.
The first regional jets seated 50 passengers - rather than 45, 60 or another number - due to the FAA requirement for an additional flight attendant at 51 seats as well as major carrier pilot scope clause provisions prevailing at the time. In the late-1980s, a 50-seat regional airliner was considered to be a relatively large unit of capacity, given the passenger demand on routes at the time. Follow-on aircraft, specifically 40- to 45-seat model regional jets, were conceived and built primarily to circumvent scope limitations. A 50-seat capacity represented something of a best guess at the time.
The urgent need for all legacy majors to either re-engineer or fail in the run-up to 9/11 provided the much-needed (albeit only partial) reform of scope limits at many major carriers, most notably Air Canada, Delta, United and US Airways. Only the threat of Chapter 11 bankruptcy protection has provided sufficient incentive to expand the number of jet aircraft with more than 50 seats allowed in affiliated carrier operation - but only in small increments. Change has been hard-won.
American Airlines pilots, for example, argued that plans at American Connection carrier Chautauqua Airlines to fly new 70-seat aircraft for another airline - United - violated scope limits at American. Northwest pilots, even more adamant on the issue, insist that any 70-plus seat jets must be operated by mainline crews. A lack of clear direction for Northwest in the 70- to 90-seat market segment may cause the carrier to fall behind its competitors in regional jet deployment because it needs to replace more than 100 ageing McDonnell Douglas DC-9s. Similarly, limits of 59 seats for the regional affiliates of Continental Airlines prevent that carrier from exploring the benefits of 70- to 90-seat flying from its Houston and Newark hubs. The latter has capacity constraints that could benefit from upgrading today's 50-seat aircraft or by being given the flexibility to serve some lower-demand routes with 90-seat aircraft instead of much larger Boeing 737s.
America West, meanwhile, was the first major US airline to gain flexibility in its pilot's contract so that it could use CRJ700/900s on medium-sized routes. Since then, the carrier has been able to use the additional lift in a variety of ways, including mainline replacement, all-new non-stop services. It has also augmented 50-seat aircraft at peak times in markets such as those from its Phoenix hub to Colorado Springs; Fresno, California; Omaha, Nebraska; and San Antonio, Texas.
The next phase
With the earliest regional jets entering their second decade of service and with a new generation of larger small jets entering the market, it would appear that the initial chapter of the small-jet story has ended. After its initial spike of orders and deliveries (see chart opposite), this phase appears to have slowed abruptly compared with other aircraft benchmarks.
The loosening of scope restrictions (specifically for the number of aircraft with at least 70 seats) has precipitated a dramatic about-face in carriers' small-jet operating strategies and ushered in new opportunities in the previously vacant 70- to 90-seat sector.
Larger-capacity regional jets - including the CRJ-700/900 and Embraer 170/175/190/195 series - enjoyed significant sales during the same period. At the end of 2004, more than 325 of these aircraft were on firm backlog for US and Canadian operators and will join the nearly 200 already in service with American Eagle, Atlantic Southeast, Comair, Horizon, Mesa/Freedom, the US Airways Mid Atlantic unit, Republic Airlines and SkyWest.
The diverse nature of the missions now provided by the CRJ700/900 and Embraer 170 types is underscored by an analysis of the schedule as it exists today and how it stood back at the start of 2001 before the new generation 70-seaters came into service. Of the 326 individual airport pairs being flown by these types in January 2005, nearly 63% were routes that were operated exclusively, or in part, by major carriers four years ago. Almost 20% are growth routes previously flown by other regional aircraft types, while 17% represent new non-stop connections.
Stage-length distribution of these routes was equally widespread, with nearly two-thirds of all flights only 1,200km (750 miles) or less. This would indicate that the larger types of aircraft have yet to fully capitalise on their capability to fly longer-range routes than their predecessors - something that is expected to happen as the fleet matures.
It is a testament to regional jet economics and their relatively low-risk profile that major carriers continue to encourage their regional partners to forge and develop non-stop routes. Each "spoke" community at the start of 2005 now averages nearly six different regional jet hub and/or carrier options. This alone is one of the most important legacies of deregulation. Before the introduction of small jets, too many US airports supported only one or two jet service options - hardly the embodiment of promised competition. The scope of choice today is all the more remarkable given that before 9/11, each spoke supported an average of only 3.85 regional jet options, so while major carriers were loath to be market pioneers over the past three years7, the regional sector was much more expansive.
The transformation of North American air service is not confined to hub-based schedules. The expansion of non-stop flights on point-to-point routes has also continued apace. Delta Connection carriers have led the charge. Delta has encouraged hub-bypass routes, recently focusing on developing service at Columbus, Ohio; Ft Lauderdale, Florida; Indianapolis, Indiana; Orlando, Florida; Tampa, Florida; and Washington National. Comair will launch twice-daily non-stop CRJ services on the nearly 1,930km sector between Hartford and Fort Myers, Florida.
Delta Connection operates 20 pure origin and destination-type routes from Orlando to cities in the south east, including seven in Florida, as well as point-to-point service to Nashville, Tennessee and Louisville, Kentucky.
Delta's use of regional jets can take much of the credit for developing Cincinnati-Northern Kentucky International airport into a fully fledged competitive hub. Delta Connection carriers today link that airport to nearly 120 different North American airports non-stop. Growth of this regional jet hub - the first of its kind - has brought new layers of price and service competition for westbound travellers connecting there, and validated a concept that has been employed by other carriers around the world.
The growth of regional jet stage lengths in recent years is a harbinger of several critical developments: first, that carriers have maximised the "natural" catchment areas of most hubs; and second, that new-generation 70-plus seat jets will continue to push the envelope - and the length of routes - even more than their predecessors.
When the first regional jets flew in the early 1990s, few observers would have imagined that "regional" aircraft would eventually fly more than halfway across the continent, but that is what has happened.
Last year, US carriers publicly announced more than 200 new regional jet routes. Of these, nearly one out of every five were planned to be on sectors of over 1,600km (see chart below).
Passengers are not completely grateful for the new, longer nonstop flights. There is a growing chorus of anti-regional jet sentiment as first-generation models have become ubiquitous and carriers push their reach during near-constant restructuring processes, with many travellers finding flights of 3h or more on aircraft designed primarily for short-haul sectors uncomfortable.
Bombardier and Embraer recognised these concerns when designing their new-generation models, and the improvements dramatic improvements include in-flight entertainment, greatly enhanced cabin comfort including first-class sections and expanded galleys.
The new-generation regional jets are being called "small jets" by a diverse and often contradictory set of constituents, including pilots - and the reason is simple. The "regional" label is clearly an anachronism given the stage lengths the 70-plus-seaters will soon fly, and the nearly transcontinental reach expected for JetBlue's 100-seat Embraer 195s.
Elusive markets
There is also a growing realisation that carriers which deploy aircraft once considered "small" by mainline standards continue to develop profitably markets that have so far eluded mainline carriers - complete with first-class seating. During the past three years, when major airline restructuring efforts have involved decisions to downsize traditional hubs such as Dallas/Ft Worth, Texas; Pittsburgh, Pennsylvania; and St Louis, Missouri, small capacity jets have been able to maintain market presence or be a source of immediate capacity when competitors abandon routes. Their use as a strategic competitive weapon is not expected to decline anytime soon.
New-generation regional jets will expand the scope of local air service in much the same way as their 30- to 50-seat predecessors. We have only just begun to see the type of market innovation these aircraft can and will offer operators and communities alike. Viva la revolucion!
About the author
Doug Abbey is an authority on regional airlines, and has more than 25 years of experience working with airlines, aircraft manufacturers, airports, regulatory agencies and other industry clients. In 1989 he founded AvStat Associates, which became part of the Velocity Group last year. He is based in Washington.
By Doug Abbey At The Velocity Group In Washington
Source: Airline Business
