Speedtape
Well-known member
- Joined
- Oct 10, 2004
- Posts
- 1,973
You are correct, but there is something that need to be discussed. The 70/90 seat platforms have other issues that just money. DAL knows that. That is why they have started to put limits on them. Three hrs in an RJ is just too long. This management team knows it.
Also yes, an RJ could make more money if they could actually charge more given the fact that we offer fewer seats, but they don't.
We compete with other airlines, and if they do not do exactly what we do, there is no way to employ that strategy. DAL is stuck pricing tickets with the market.
Fact is that with that market they will actually have a better yeild on the lower priced tickets with a larger jet. The RJ's are very costly per seat mile, where as the larger jets are not.
I will grant you that there are a few markets that will see a bump in RJ service due to the netting effect that we will employ with our many hubs. It will not be as great as you think. Moreover, the merger will in effect keep the RJ's that were there, where there was an actual business case to bring in a large jet. For example places like PIA.
When the 100 seat jet actually arrives in a platform that DAL is willing to sign on to, yes, you will see DAL take 40 or seats off a flight in favor of that.
One thing DAL will never admit publically and almost never personally, is that they have seen travelers actually book away from RJ's even if the price is more. That right there is proof in the pudding.
Also the 76 seat jet is not necessrarly a money maker. What it does, is allowes DAL to offer a "preimum" product to medium markets. That is the sole purpose behind it. Not to make more money.
I don't have time to address each of your points--at least for now.
I will keep it simple and say the following: The RJ, no matter what size, is just another layer of flying. Yes, the CASM is higher than an MD88, and the MD88 Casm is higher than the 757, and the 757 Casm is higher than the 777. If you are going to single out one airplane for comparison for your argument, then your argument is flawed. Guaging aircraft size depends on demand/future bookings. Any argument that can be made against the RJ as compared to larger guage aircraft, can usually be made about the next size up to the next size up. Yes, yields are thin and to raise prices right now would further stifle demand. If fuel goes up, there may be markets that no longer make sense to serve with any size aircraft. There are many variables, and right now, the market is very dynamic. Feed is even more critical. Any plan to reduce capacity will affect the whole fleet to some degree. 50's may be further reduced, but they will not go away until there is something of like size that is more efficient to replace it--not a narrow body aircraft.