One of my points is that AMR doesn't need the best engine on the best airframe.
They want a stand-up cabin that can hop around the eastern half of the U.S at a reasonable speed (.78 or better) that has a lower seat/mile cost than a 44 seat jet or an F-100. The 170 can do this. Used in a regional cost structure they could actually run flights against SWA or JetBlue.
Will the product be as good as JetBlue ?
Of course not.
But AMR believes that their network (ff miles) and connection synergy will be enough to retain and even attract new customers.
Same idea their using to run Eagle RJ shuttle against competitor mainline.
Pax will see this as a mainline type A/C as opposed to a hunch down the isle RJ.
Over the next 5 years or so, the real growth will be the 70 and 90 seat "small jet". Mainline will still be there but will lose 25 % to this A/C . The only way management can (or be willing) to realize an acceptable profit margin with these A/C is under a regional cost structure.
I don't like it, but I'm convinced that's the way it will be.
Watch U Mid-Atlantic. They will utilize this and AA, UAL and DL will be forced to compete.
The inexpensive (relatively) mainline cabin RJ will be as common in 2 years as smaller RJ's are now.
In '94 everyone laughed at the small RJ (except Comair).
Look out any terminal window now. No ones laughing now (especially mainline ALPA).
History is about to play itself all over again.
..."Those who don't learn from history are doomed to repeat it".
Swallow hard. AMR knows EXACTLY want they want and how to get it.
They want a stand-up cabin that can hop around the eastern half of the U.S at a reasonable speed (.78 or better) that has a lower seat/mile cost than a 44 seat jet or an F-100. The 170 can do this. Used in a regional cost structure they could actually run flights against SWA or JetBlue.
Will the product be as good as JetBlue ?
Of course not.
But AMR believes that their network (ff miles) and connection synergy will be enough to retain and even attract new customers.
Same idea their using to run Eagle RJ shuttle against competitor mainline.
Pax will see this as a mainline type A/C as opposed to a hunch down the isle RJ.
Over the next 5 years or so, the real growth will be the 70 and 90 seat "small jet". Mainline will still be there but will lose 25 % to this A/C . The only way management can (or be willing) to realize an acceptable profit margin with these A/C is under a regional cost structure.
I don't like it, but I'm convinced that's the way it will be.
Watch U Mid-Atlantic. They will utilize this and AA, UAL and DL will be forced to compete.
The inexpensive (relatively) mainline cabin RJ will be as common in 2 years as smaller RJ's are now.
In '94 everyone laughed at the small RJ (except Comair).
Look out any terminal window now. No ones laughing now (especially mainline ALPA).
History is about to play itself all over again.
..."Those who don't learn from history are doomed to repeat it".
Swallow hard. AMR knows EXACTLY want they want and how to get it.