Itsme

RIP

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Regional jets appear on endangered species list
By Marilyn Adams, USA TODAY

The sleek little 50-seat regional jet that changed the airline industry 14 years ago is now a falling star, the victim of changing economics.
Once prized by airlines for its speed and range — but disliked by many fliers for its cramped cabin — the 50-seater has seen demand plummet. Montreal-based Bombardier, which rolled out the first 50-seat jet in 1991 and is the leading maker, announced last week it will suspend production in January. Orders that once numbered in the hundreds have fallen to 55, Bombardier said.

Embraer of Brazil, the other leading maker, says it has 51 firm orders for its jets with 50 seats or fewer. Embraer declined comment on whether it plans to stop building those anytime soon.

Not long ago, airlines couldn't get enough RJs, which list for up to $24 million each.

Airlines snapped them up for service to midsize cities where traffic didn't justify larger jets.

They could carry more passengers farther and faster than noisy turboprop jets they replaced. Just two years ago, Bombardier had orders for 300. Bombardier says it doesn't know when or whether production will resume.

Small jets don't make economic sense on many routes anymore. Amid competition from low-fare carriers, regional jets don't command the high fares they once did. And small jets spread high fuel costs among too few seats.

"The day of the regional jet is over, in terms of demand," says airline consultant Mike Boyd. "They can't make money."

About 1,600 regional jets — mostly 50-seaters — are flying in the USA today. Boyd forecasts up to 200 will go to storage in the desert in the next few years.

UBS analyst Peter Rozenberg calls the outlook for RJs "unambiguously negative." He predicts a glut of 100 or so 50-seaters as a result of recent Chapter 11 filings by Delta Air Lines and Northwest.

Delta has said it plans to return 30 of its leased regional jets as part of its restructuring. Northwest placed a hold on an order for 13 new RJs for regional carrier Mesaba Airlines, which feeds passengers to Northwest. Mesaba followed Northwest into Chapter 11 last month.

Meanwhile, low-fare carrier Independence Air, which flies mostly 50-seat jets, has warned of a possible bankruptcy filing. This week, it quit flying 28 of its 58 regional jets. It sold or returned 29 earlier this year.

Rozenberg predicts RJs won't disappear, but some 50-seaters will give way to 70-seat regional jets, which are more comfortable and more economical for airlines to fly.

But as many 50-seaters leave the skies, Boyd says large and midsize cities where airlines have used them will see some non-stop routes disappear, fewer flights a day on other routes, and fewer airlines competing.

Regional carrier American Eagle recently stopped flying Norfolk, Va., to Boston, for example, because of slack demand, said spokesman Dave Jackson. That route is still served by regional jets flying for Delta and US Airways.

kgsilvas

These jets are not only cramped, they are also pushed around alot more in bad weather. I say good riddance! Give me a 737 anyday.

Cubsfan

Sounds great! 'course, my chances of taking 737's between small cities in the middle of the country is probably not so good...