Fuel Use Per Passenger Stats in AJC Article RE: Fewer RJs
Nov 27, 2011, 3:38 pm
#16
Join Date: Oct 2010
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This movement has been underway for years, with some disclosure of financials. See slide #24 in the December 2010 investor presentation. ATL-DAB was 7x (CR7, IIRC) that went to 4x MD-88, now 3x MD-88 + 1x 757.
http://images.delta.com.edgesuite.ne...lor_recons.pdf
http://images.delta.com.edgesuite.ne...lor_recons.pdf
I understand DLs presentation that you cited and in many markets it makes sense (DAB being one). However, in many the 50 seaters are necessary if DL is to maintain service in the cities.
Nov 28, 2011, 12:46 pm
#17
Join Date: Sep 2011
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How do these numbers compare to prop planes? Delta is retiring the Saabs in the face of these fuel costs, which seems odd...but what about newer offerings from Bombardier, et. al? I've flown the Q400 with Porter Airlines and found it to be a pretty decent ride, at least for flights under 2 hours, which is what I would assume most of the CRJ-200 flights are. I'd certainly much prefer a Q400 to a CRJ-200 on comfort, and as far as I can gather, DL would prefer a Q400 on fuel costs and break-even point.
Nov 28, 2011, 4:51 pm
#18
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The current sweat spot is about 170-200 passenger seats. Those airplanes have the lowest per-seat-mile cost. As you get smaller, or larger, from there the cost per ASM increases.
The advantage of the small airplanes, even the turboprops, is that the total cost of the flight is low so you can provide service, feeding connecting passengers to more profitable flights, without losing much money on the low-demand route. Fewer seats also lets you shed the deeply discounted tickets that you'd have to offer on a larger airplane in order to fill more seats so you have higher average yields.
The advantage of the small airplanes, even the turboprops, is that the total cost of the flight is low so you can provide service, feeding connecting passengers to more profitable flights, without losing much money on the low-demand route. Fewer seats also lets you shed the deeply discounted tickets that you'd have to offer on a larger airplane in order to fill more seats so you have higher average yields.
Nov 28, 2011, 4:57 pm
#19
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Let us not forget that with DL, the smaller planes can be crewed by connection rather than mainline employees, thus saving money on wages and benefits. There are also differences in lavatories and the number of FAs that are required.
Of course, in actuality the DL Connection flights are operated under contract, not by DL, with some of the business risk being passed onto the Connection carrier.
Of course, in actuality the DL Connection flights are operated under contract, not by DL, with some of the business risk being passed onto the Connection carrier.