General Lee
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- Aug 24, 2002
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Posted on Sun, Sep. 26, 2004
By Trebor Banstetter
Star-Telegram Staff Writer
About two years ago, many North Texas travelers loyal to Delta Air Lines began to feel a little squeezed.
More and more, fliers found themselves taking off from Dallas/Fort Worth Airport on narrow, small regional jets carrying the Delta Connection label instead of full-size airplanes. And it wasn't just on short hops to cities like Tulsa, Okla., or Lubbock. It was on longer flights to big cities like New York, Minneapolis and Phoenix.
The downsizing was Delta's last-ditch attempt to turn around its D/FW hub, which had lost money for years. Executives hoped using the smaller aircraft would save money and push Delta's operations into the black.
They were wrong. Delta made it official this month when it announced plans to pull the plug on its D/FW operations as part of an extensive restructuring. It will eliminate 92 percent of its D/FW flights by Jan. 31 -- including its regional jet flights.
One lesson from Delta's exodus: Regional jets -- once hailed as saviors of the airline industry -- aren't necessarily the solutions for every problem, aviation experts say.
"Twelve years ago, this was a revolution," said aviation consultant Stuart Klaskin of Klaskin, Kushner & Co. in Coral Gables, Fla. "Six years ago, it was a panacea. Three years ago, it was a sort of Band-Aid.
"Now, there's some rethinking going on."
Mike Boyd, an airline consultant with the Boyd Group of Evergreen, Colo., said Delta's experience at D/FW demonstrated that the small jets have difficulty on routes where they compete against full-size airplanes.
Given a choice, he said, travelers fervently avoid the cramped cabins and narrow confines of the regional jets.
"There has been a real consumer backlash against these airplanes," he said. "People hate them for any flight longer than an hour or so."
That's been the case for Tom Chick, a vice president of national accounts at Southlake-based Technical Transportation.
A frequent business traveler, Chick, who lives in Plano, has found himself on regional jets more and more in recent years when flying out of D/FW. And not just on Delta -- he said he often must travel on the narrow airplanes when flying American Airlines or other carriers.
"I will do just about anything to avoid those planes," he said. "I'll even connect if I have to, and I detest connecting."
Hope for the airlines
Regional jets were developed to replace turboprop airplanes, which were typically used to ferry passengers from towns and small cities to nearby hub airports, where they would connect to full-size jets.
The regional jets, with fewer than 100 seats and often 50 or less, can fly at higher altitudes and thus more smoothly than turboprops.
They can also fly farther, connecting more distant cities to the biggest hubs. And, because they are typically operated by affiliate airlines -- such as American Eagle or Delta Connection -- they usually have lower labor costs.
"Compared to the old turboprops, the regional jets are great," said Alan Bender, a professor of aeronautical science at Embry-Riddle Aeronautical University in Daytona Beach, Fla.
But when the travel industry began to slow down after 2000, some airlines began to use the small jets on routes that had been served with full-size planes.
While more expensive to operate in terms of the cost per seat, the regional jets were seen as a cost-effective alternative because the big airplanes often had many empty seats. The same number of passengers would fill a regional jet, increasing the chances that the flight would be profitable overall.
While Delta was the most aggressive major airline when it came to adding regional jets, other carriers also ramped up their use of the small planes, including Fort Worth-based American Airlines.
Last year, when it negotiated concessions with pilots, executives asked for and received the ability to expand American Eagle, the carrier's regional affiliate. Previously, the labor contract with pilots had greatly restricted Eagle's growth.
According to financial documents filed with the Securities and Exchange Commission, a majority of the new airplanes American has on order for the next few years are regional jets.
Of nearly 140 new planes that American is scheduled to receive by 2010, 80 -- or nearly 60 percent, will be regional jets manufactured by Embraer and Bombardier.
In the past year alone, the number of passengers transported on regional airlines has increased 15 percent, according to the Regional Airline Association. Mary Dulle, who works in corporate communications for Fort Worth-based Alcon Labs, said she has noticed greater use of regional jets on flights to Cleveland, where she travels regularly, usually on American.
"They used to be nice, comfortable large jets, and now they are regionals," she said.
Dulle doesn't like the change. "Flying time is longer, the seats are smaller, there's less carry-on space and it seems noisier than larger jets," she said.
Crushing competition
Regional jets are effective in serving small communities, but their advantage vanishes when they compete with full-size airplanes, said consultant Klaskin.
"You saw the majors throw 50-seat regional jets against the [discount airlines] and against mainline jets," he said. "That's a classic mistake because the customer feels like he's getting a subpar product."
That's why Delta had little success at D/FW, where many of its small-jet routes faced full-size competition from American, he said.
That doesn't mean a hub dominated by regional jets cannot work.
In Cincinnati, for example, nearly two-thirds of Delta passengers flew on regional affiliates rather than the main airline during the first five months of the year, according to the U.S. Department of Transportation.
Unlike its exodus from D/FW, Delta plans to boost its presence at Cincinnati, and it recently unveiled a new pricing scheme designed to attract more local passengers.
But Delta also lacks a major competitor in Cincinnati, so on most of those routes, it's a regional jet or nothing.
"When you're the only game in town, a regional jet will work, particularly at a small hub like Cincinnati," said professor Bender.
That's generally how American has deployed regional jets in markets from D/FW.
For example, while Dulle of Alcon doesn't like flying on small jets to Cleveland, she doesn't have any choice. The only airlines serving that market directly are American Eagle and Continental Express, both of which use 50-seat jets.
Lisa Bailey, a spokeswoman for American Airlines, acknowledged that the carrier has replaced mainline jets with regional jets in some markets.
"Those are typically mainline markets where the big jets couldn't be profitable," she said. "We made a decision that those assets could be better deployed elsewhere."
But she stresses that American's regional jet strategy is different from Delta's. The airline typically doesn't offer the small airplanes against full-size jets at its hubs, and it believes that American Eagle's primary mission is to feed passengers to connections at big airports.
In coming years, the line between the regional jets and their larger counterparts is likely to blur. A new generation of regional jets are much larger, with 100 to 110 seats, and feature roomier cabins.
Fast-growing discount carrier JetBlue Airways has ordered 100 of the new planes manufactured by Embraer, a Brazilian aerospace company. Many analysts believe that they will allow that airline to expand into smaller cities that cannot be served profitably with full-size airplanes.
"The thing is, these aren't really even regional jets, even though everyone calls them that," said consultant Boyd. "They make a lot more sense right now than the little 50-seaters."
The newer aircraft make more sense on longer flights because they are more comfortable for passengers and can compete better with large airplanes, he said.
"They're not going to vanish overnight," Boyd said, "but the day of the regional jet is drawing to a close."
It wouldn't come a moment too soon for business traveler Chick.
"I hate those little things," he said.
IN THE KNOW
Regional jet growth
The number of regional jets registered with the Federal Aviation Administration has grown exponentially since 1994.
Year Airplanes
1994 20
1995 30
1996 40
1997 60
1998 120
1999 210
2000 370
2001 570
2002 760
2003 970
2004 1,350
Bye Bye--General Lee
By Trebor Banstetter
Star-Telegram Staff Writer
About two years ago, many North Texas travelers loyal to Delta Air Lines began to feel a little squeezed.
More and more, fliers found themselves taking off from Dallas/Fort Worth Airport on narrow, small regional jets carrying the Delta Connection label instead of full-size airplanes. And it wasn't just on short hops to cities like Tulsa, Okla., or Lubbock. It was on longer flights to big cities like New York, Minneapolis and Phoenix.
The downsizing was Delta's last-ditch attempt to turn around its D/FW hub, which had lost money for years. Executives hoped using the smaller aircraft would save money and push Delta's operations into the black.
They were wrong. Delta made it official this month when it announced plans to pull the plug on its D/FW operations as part of an extensive restructuring. It will eliminate 92 percent of its D/FW flights by Jan. 31 -- including its regional jet flights.
One lesson from Delta's exodus: Regional jets -- once hailed as saviors of the airline industry -- aren't necessarily the solutions for every problem, aviation experts say.
"Twelve years ago, this was a revolution," said aviation consultant Stuart Klaskin of Klaskin, Kushner & Co. in Coral Gables, Fla. "Six years ago, it was a panacea. Three years ago, it was a sort of Band-Aid.
"Now, there's some rethinking going on."
Mike Boyd, an airline consultant with the Boyd Group of Evergreen, Colo., said Delta's experience at D/FW demonstrated that the small jets have difficulty on routes where they compete against full-size airplanes.
Given a choice, he said, travelers fervently avoid the cramped cabins and narrow confines of the regional jets.
"There has been a real consumer backlash against these airplanes," he said. "People hate them for any flight longer than an hour or so."
That's been the case for Tom Chick, a vice president of national accounts at Southlake-based Technical Transportation.
A frequent business traveler, Chick, who lives in Plano, has found himself on regional jets more and more in recent years when flying out of D/FW. And not just on Delta -- he said he often must travel on the narrow airplanes when flying American Airlines or other carriers.
"I will do just about anything to avoid those planes," he said. "I'll even connect if I have to, and I detest connecting."
Hope for the airlines
Regional jets were developed to replace turboprop airplanes, which were typically used to ferry passengers from towns and small cities to nearby hub airports, where they would connect to full-size jets.
The regional jets, with fewer than 100 seats and often 50 or less, can fly at higher altitudes and thus more smoothly than turboprops.
They can also fly farther, connecting more distant cities to the biggest hubs. And, because they are typically operated by affiliate airlines -- such as American Eagle or Delta Connection -- they usually have lower labor costs.
"Compared to the old turboprops, the regional jets are great," said Alan Bender, a professor of aeronautical science at Embry-Riddle Aeronautical University in Daytona Beach, Fla.
But when the travel industry began to slow down after 2000, some airlines began to use the small jets on routes that had been served with full-size planes.
While more expensive to operate in terms of the cost per seat, the regional jets were seen as a cost-effective alternative because the big airplanes often had many empty seats. The same number of passengers would fill a regional jet, increasing the chances that the flight would be profitable overall.
While Delta was the most aggressive major airline when it came to adding regional jets, other carriers also ramped up their use of the small planes, including Fort Worth-based American Airlines.
Last year, when it negotiated concessions with pilots, executives asked for and received the ability to expand American Eagle, the carrier's regional affiliate. Previously, the labor contract with pilots had greatly restricted Eagle's growth.
According to financial documents filed with the Securities and Exchange Commission, a majority of the new airplanes American has on order for the next few years are regional jets.
Of nearly 140 new planes that American is scheduled to receive by 2010, 80 -- or nearly 60 percent, will be regional jets manufactured by Embraer and Bombardier.
In the past year alone, the number of passengers transported on regional airlines has increased 15 percent, according to the Regional Airline Association. Mary Dulle, who works in corporate communications for Fort Worth-based Alcon Labs, said she has noticed greater use of regional jets on flights to Cleveland, where she travels regularly, usually on American.
"They used to be nice, comfortable large jets, and now they are regionals," she said.
Dulle doesn't like the change. "Flying time is longer, the seats are smaller, there's less carry-on space and it seems noisier than larger jets," she said.
Crushing competition
Regional jets are effective in serving small communities, but their advantage vanishes when they compete with full-size airplanes, said consultant Klaskin.
"You saw the majors throw 50-seat regional jets against the [discount airlines] and against mainline jets," he said. "That's a classic mistake because the customer feels like he's getting a subpar product."
That's why Delta had little success at D/FW, where many of its small-jet routes faced full-size competition from American, he said.
That doesn't mean a hub dominated by regional jets cannot work.
In Cincinnati, for example, nearly two-thirds of Delta passengers flew on regional affiliates rather than the main airline during the first five months of the year, according to the U.S. Department of Transportation.
Unlike its exodus from D/FW, Delta plans to boost its presence at Cincinnati, and it recently unveiled a new pricing scheme designed to attract more local passengers.
But Delta also lacks a major competitor in Cincinnati, so on most of those routes, it's a regional jet or nothing.
"When you're the only game in town, a regional jet will work, particularly at a small hub like Cincinnati," said professor Bender.
That's generally how American has deployed regional jets in markets from D/FW.
For example, while Dulle of Alcon doesn't like flying on small jets to Cleveland, she doesn't have any choice. The only airlines serving that market directly are American Eagle and Continental Express, both of which use 50-seat jets.
Lisa Bailey, a spokeswoman for American Airlines, acknowledged that the carrier has replaced mainline jets with regional jets in some markets.
"Those are typically mainline markets where the big jets couldn't be profitable," she said. "We made a decision that those assets could be better deployed elsewhere."
But she stresses that American's regional jet strategy is different from Delta's. The airline typically doesn't offer the small airplanes against full-size jets at its hubs, and it believes that American Eagle's primary mission is to feed passengers to connections at big airports.
In coming years, the line between the regional jets and their larger counterparts is likely to blur. A new generation of regional jets are much larger, with 100 to 110 seats, and feature roomier cabins.
Fast-growing discount carrier JetBlue Airways has ordered 100 of the new planes manufactured by Embraer, a Brazilian aerospace company. Many analysts believe that they will allow that airline to expand into smaller cities that cannot be served profitably with full-size airplanes.
"The thing is, these aren't really even regional jets, even though everyone calls them that," said consultant Boyd. "They make a lot more sense right now than the little 50-seaters."
The newer aircraft make more sense on longer flights because they are more comfortable for passengers and can compete better with large airplanes, he said.
"They're not going to vanish overnight," Boyd said, "but the day of the regional jet is drawing to a close."
It wouldn't come a moment too soon for business traveler Chick.
"I hate those little things," he said.
IN THE KNOW
Regional jet growth
The number of regional jets registered with the Federal Aviation Administration has grown exponentially since 1994.
Year Airplanes
1994 20
1995 30
1996 40
1997 60
1998 120
1999 210
2000 370
2001 570
2002 760
2003 970
2004 1,350
Bye Bye--General Lee
