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United will increase RJ flying!

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Two Words
$100 Oil
It's Re-Engineer-The-Business Time...
On An Emergency Basis

[FONT=Tahoma, verdana, lucida]Sector One: Small Lift Providers[/FONT]
[FONT=Tahoma, verdana, lucida]Say Good-Bye To A Lot of Regional Jets, Real Soon.
Fuel Pass-Throughs Will Pass Them Directly To The Desert
[/FONT]

[FONT=Tahoma, verdana, lucida]JANUARY, 2008. It should be back-to-the-drawing-board time for small lift providers, what some still call "regional airlines." Maybe time for a period of sheer panic, too. The issue: 50-seat and smaller RJs are being economically marginalized by skyrocketing fuel costs. [/FONT]
[FONT=Tahoma, verdana, lucida]Major carriers will be looking to quickly cull out dozens of RJs in the coming months. And hundreds more in the next five years, with no replacement for this lift - or many of the markets they operate - in sight.[/FONT]
[FONT=Tahoma, verdana, lucida]Most SLP agreements provide for fuel costs to be a pure pass-through to the major carrier, and that means the majors are eating a lot of red ink. A lot of RJ mission applications that once provided adequate revenue generation are now net drains on major airline systems. They cannot but move quickly to restructure (read: reduce) the fleets of RJs they're leasing in.[/FONT]
[FONT=Tahoma, verdana, lucida]Faster Retirements Than Predicted. The Boyd Group's Global Fleet Demand Forecasts were the first to predict the decline in demand for new RJs, and also to predict that the number in operation represented a glut. That was as far back as 1999, when other
rjbye2.JPG
consultants were still forecasting just the opposite from the comfort of their rearview mirrors, and the warmth of being within "the consensus.".
[/FONT]
[FONT=Tahoma, verdana, lucida]As attendees at our Annual Aviation Forecast Conference last October learned, retirements of CRJs and ERJs would result in global RJ fleets declining by over 1,200 units over the next ten years. [/FONT]
[FONT=Tahoma, verdana, lucida]Now, with oil hovering at $100 a barrel, that forecast has been revised. The retirement projections are for over 1,700 RJs to come out of fleets for the same ten year period, with the rate front-loaded in the 2008 - 2013 period, representing approximately 835 RJs taken out of service in the US alone. [/FONT]

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Just curious, but what is the scope limit at UAL re: RJs?
 
People will complain about everything eventually.

Case in point:
Nine years ago an old college friend who now travel for business tells me, "I sure love those RJs, they are quiet and just as fast as the big planes. Beats the heck out of a turboprop."

Last year he tells me, "I sure hate flying RJs. The seats are so small and there is no room in the overhead."
 
Can someone who actually has access to the UAL scope contract actually enlighten us as to how this would affect the regionals.
There is alot of discussion about this affecting scope, but I thought it was a straight 70 seat deal.

Disclaimer: I have friends over there that will be hitting the street because of all this, so NO - I'm not salivating over the thought of increased RJ flying.
 
Those "new" planes should have UAL furloughs in the left seat.

No because the "Senior good old boys" at ALPA only care about their fat little jobs way up in that seniority list. What do they do to protect their position. Sell out the flying to Express carriers where young eager pilots are willing to work for nothing at the hopes of making to the majors. And because there are no opportunities out there for them.

In other words the youth of this world are subsidizing the geezers - hi level of living. Old people are fleecing their young. When you look at everything from Medicare to Social Security to Unions.

Yes, promises where made to the older generations but the Govt. can't keep these promises. Your soulution? Rack up our debt and let the younger generations deal with it. IT'S THE REPUBLICAN WAY!!!!!!
 
My guess is most of this increase in capacity is just upsizing from 50 seat RJs to 70 seats RJs plus a little increase in stage length as they take over more mainline routes. I doubt the total number of express airplanes or jobs is increasing.
 
My guess is that we'll be seeing more CR7s, CR9s and E170s in the coming months (as fast as they can crank them out). The E135/140 fleet should slowly decrease. Those Q400s are looking more attractive nowadays and we should see more out there too.
 
My guess is that we'll be seeing more CR7s, CR9s and E170s in the coming months (as fast as they can crank them out). The E135/140 fleet should slowly decrease. Those Q400s are looking more attractive nowadays and we should see more out there too.

Depends on what, if any, scope protections UAL has in place. Anyone know the answer?
 
My guess is that we'll be seeing more CR7s, CR9s and E170s in the coming months (as fast as they can crank them out). The E135/140 fleet should slowly decrease. Those Q400s are looking more attractive nowadays and we should see more out there too.

Nothing over 70 seats permitted per scope.
 
United has a RFP out for about a month for Q400 and CRJ50/70, which is either to replace mesa or cover the increased flying.
 
One company...

AWAC

There's been a lot of talk going on between the two. Guess we will have to wait to see what happens.
 

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