Turbulent times may produce new turboprop opportunities Dateline: Thursday December 09, 2004
The ongoing financial struggles of mainline carriers could yield new opportunities for turboprop aircraft, according to Saab Aircraft Leasing President and CEO Michael Magnusson.
"When business was good, you could afford to fly an RJ on short stage lengths," he said. But turboprops may find a new lease on life as mainline carriers trying to rein in their costs take another look at the fuel-efficient aircraft for some of their Regional flying.
"There are no longer unacceptable scenarios," Magnusson said. He noted that ExpressJet, a Regional partner of Continental Airlines, recently issued an RFP for 10-15 turboprops. The carrier, which shed its turboprop aircraft a few years ago, currently operates a fleet of ERJ-145s.
Magnusson noted that RJs are "great" on routes of between 300 and 500 mi. but that turboprops continue to be the best choice for routes of less than 200 mi. "There is no debate--there is still room for turboprops, but the size of the room is debatable." Orders for RJs in the 50-seat range have diminished, financing for new aircraft is difficult to obtain and there are fewer viable turboprop markets in which to place RJs, he noted. At the same time, the focus is on larger RJs in the 70/110-seat range, "which is good for us. It takes them farther away from us."--Sandra Arnoult
Maybe Group should have not even worried about the CRJ200's since they missed that window by about 10 years! I saw a article that stated that most 50 seat RJ's will be in the desert in 10 years(i guess the seat cost is higher then ever). They should have gotten all Q400's instead of the 50 seat RJ's, and then when it was time for RJ's only 700/900s series along with EMB170/190's. I think then you would have seen a better revenue base. Just an opinion, and u know what there like🙂
But I forgot, hmmm Group will step over a dollar to pick up a quarter.