Imagine Stretching Out On An RJ... But It'll Cost You

Now, here's an oxymoron: roomier, more luxurious regional jets. In the wacky world of airline revenue, however, that idea isn't just talk -- it's already happening. And it'll cost you.

As ANN has reported, Northwest Airlines is already adding new 76-seat Bombardier CRJ900s and Embraer 175s for its Mesaba and Compass subsidiaries, respectively. Those planes include a dozen first-class seats apiece, as well as purportedly more room for steerage -- er, coach -- passengers.

Delta Air Lines also plans to fly 77 dual-class regional jets by 2008, including 14 new CRJ900s that will replace an equal amount of 50-seat CRJ100s in Comair's fleet. Subsidiaries and partners of United Airlines already fly 115 70-seat RJs with first class, Economy Plus, and coach seating.

It's no coincidence the three airlines pushing for larger regional jets, are also three carriers most recently in bankruptcy. Going through Chapter 11 allowed Northwest, United and Delta to gain concessions from its pilots unions, to allow more of the smaller jets.

The newer, spiffier planes aren't the airlines' way of atoning for forcing passengers onto cramped 50-seat CRJs all these years. Like everything else in the airline business, it's all about money... and a way to charge premium fares throughout an airline's mainline and regional operations.

As regional jets have become prevalent on more and more routes, business-class passengers in particular have been asking for better accomodations, Delta spokeswoman Betsy Talton told The Associated Press. The aim with the new planes is "to make it all more seamless and more like the mainline jet experience," she said.

The ability to charge premium fares on smaller planes also helps airlines make money on routes that have been traditionally loss-leaders. The AP cites as an example a Northwest flight from Fargo to Minneapolis, which in the past has lost money on its own (the airline makes up for it on flights out of its hub in MSP.) Coach passengers pay $303 round-trip on the route; first class fliers pay $981 -- for which they can enjoy hot meals, and close to the same amount of room as in the first-class cabin of a larger airliner.

Airlines believe enough passengers will be willing to pay for a larger seat on an RJ, especially on longer flights, to make regional jets profitable.

"What people really care about is nonstop service. And these aircraft are the right size to introduce them into many markets that wouldn't have it otherwise," said aviation consultant George Hamlin of Airline Capital Associates.

There are bumps in the road for the plan. Although intended to be more economical than traditional, larger planes, regional jets don't actually save that much fuel on a per seat basis -- and, in fact, often cost more, according to aviation consultant John F. Walsh.

On a larger plane, fuel accounts for about one-quarter the average cost-per-available-seat-mile; on an RJ, that figure climbs to 40 percent of the CASM. More room for first class passengers means fewer available seats on the plane, driving costs up even further.

Also in question is increasing hostility towards regional jets at larger airports, especially around New York City. As ANN reported, officials at JFK, LaGuardia and Newark have asked the FAA to restrict airlines from flying so many RJs into those airports, in the hopes airlines will opt to fly fewer, larger planes -- each holding more passengers than your typical RJ -- instead.

"We'd like to have more passengers on less planes," said Port Authority of New York/New Jersey Aviation Director William DeCota recently.

FMI: www.nwa.com, www.delta.com, www.panynj.gov