Re: Air Canada plans to buy up to 105 regional jets

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Physical characteristics have only a partial influence on operating
costs.

You are correct on the jetBlue EMBs, but with most other airlines, the
a 90 seat CRJ derivative will cost less than an equivalent 90 seat
mainline plane such as an A318. Why? the CRJ900 will almost always be
flown by the 'feeder' airline.

In the US, the majors, outside of AMR, the feeder's are operated as
separate companies. The feeder pilot wages are low and the majors
usually pay on a fee per departure, influenced by aircraft type.
There's an obvious incentive for the majors to even subsidize the
acquisitions of more RJs by the feeder airlines. Sure enough, this is
exactly what has happened.

In Canada, with AC's Jazz a wholly owned subsidiary, AC wanted to drive
as much business to be flown by their Jazz subsidiary as possible. Why?
The cost to operate is less, mostly from the lower pilot wages. This
exact issue was one of the key sticking points a few weeks back when it
looked like the Judge was going to order the trustees to liquidate the
airline.

If it was straight operating costs, wages being equal, things would be
more obvious, but alas they are not.

Matthew

On Sunday, June 22, 2003, at 08:58  PM, Alireza Alivandivafa wrote:

> In a message dated 6/22/2003 12:22:59 PM Pacific Daylight Time,
> mmontano@xxxxxxxxx writes:
>
> << Just like United, US Airways, Delta and even Jet Blue and Air Tran.
> >>
>
> Remember that jetBlue is flying 100 seat EMBs, that are not even
> called ERJs
> anymore.  They are so close in capacity to the 717 and A318, it is a
> legit non
> RJ.  Also, it has bigger range than the 717.
>

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