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Midwest airlines and express jet have made new commitments with regional jets which differ from traditional hub small market routes, other airlines may have to be more creative with how they deploy their regional jets or those of the regional lift providers they contract with. Regional jets are well suited for a couple of applications which will become more important to revenue conscious airlines in the coming years.
Delta is simply using some regional jets which would otherwise sit empty on the ground to expand their route network and to gain market share on routes to latin america. The regional jet themselves may not be profitable, but delta should make money because most of those passengers who travel from seattle or portland will continue on to latin america, enabling delta to charge a higher fare and make a profit overall.
Finding niche applications for regional jets can be tough, but idea to use the aircraft to add capacity between large markets in order to facilitate connections should work well, provided there is sufficient demand for travel to latin america, especially during the upcoming hurricane season.
The excellent characteristic about regional jets is that they can be used to quickly build up service in a market to gain market share, and can be used to operate nonstop flights to many different cities, although its costly to do so, especially when competing against an airline using mainline aircraft.
For example, in a city such as omaha, regional jets could be used effectively by a lift provider contracting with a major airline to add service to a variety of cities unserved by mainline carriers. Granted, northwest would probably sell tickets at a premium to other airlines offering connecting service, but it would offer loyal customers more options for point to point service.
And since those who are most likely to need nonstop service are business travelers, who already pay a premium for tickets, it could be a win win situation, provided routes are carefully selected. Actually, northwest has tried something similar to this in milwaukee and indianapolis, with mixed results.
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