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Turboprops? Not Really. But, there isn't any relief in sight, even for shorter haul flying. Here's a flash: the costs of the 30-34 seat turboprops that are still flying (and no more are coming) are getting really onerous. From the Airports:USA DataMiner aircraft database, here are the overall all-up costs for a SF-340 on a 200-mile stage length at various fuel prices.[/FONT]
[FONT=Tahoma, Ariel, Lucida]We've done the math. Even at $3 a gallon, on a longer 300-mile stage length, the net ASM cost of a SF-340 is just under 30 cents. A 50-seat RJ is approximately 20 cents. When the math is done, the net sector costs of a SF-340 is approximately $3,000. The net sector costs of a 50-seat RJ: you guessed it. $3,000.[/FONT]
[FONT=Tahoma, Ariel, Lucida]Point: There is no turboprop relief in sight for smaller communities. In fact, it would be a net plus in some cases to shift some of this flying to RJs. If the sector costs are similar, and there's 16 more seats to sell, it doesn't take an MBA from Wharton to figure it out. Countering this is the opportunity cost of applying a $15 million RJ asset into a market where its full operational potential might be better used elsewhere.[/FONT]
[FONT=Tahoma, Ariel, Lucida]What's certain, however, is that fleets of 50-seat RJs are being reduced, and regardless of cost comparisons, there is limited traffic stimulation potential at many smaller communities.[/FONT]
[FONT=Tahoma, Ariel, Lucida]Message: innovative marketing and strategic planning will be needed in the future at small and mid-size communities. The old ways of doing a "survey" or a "study" and then inflicting them, along with a community "delegation" on the airline planners, is near-certain to mostly waste time. The goal: identify new, clear value streams the community can develop.[/FONT]
[FONT=Tahoma, Ariel, Lucida]We've done it for communities across the nation. If you're interested in investigating the future of air service retainment and recruitment, give Mike Mooney at Boyd Group International a call. (303) 674-2000.[/FONT]