Regional airlines contribute to aero manufacturing

The recent Regional Airline Association convention offered a reminder about the importance of an often under-recognized segment of the industry.

Almost half of flights in the United States are carried by regional airlines doing business as sub-brands of main-line carriers. Their names include Republic Airways, Mesa Airlines, ExpressJet, and Horizon Air – and they often fly under several code sharing agreements. For example, SkyWest partners include United Airlines, Delta Air Lines, US Airways, American Airlines, and Alaska Airlines. With a fleet of 334 aircraft, St. George, Utah-based SkyWest operates more than 1,700 flights daily. Last year, it carried 27.9 million passengers. It also has 11 maintenance bases.

In addition to being consumers of maintenance, repair, and overhaul services, regional airlines are the principal buyers and operators of 50- to 150-seat airliners, which are increasingly jets, not turboprops, from manufacturers Embraer and Bombardier, and soon, Mitsubishi Aircraft.

Embraer projects 2,060 new deliveries of 70- to 130-seat jets in North America during the next 20 years. This represents almost 35% of the total global demand for aircraft in this segment, with an estimated value of $96 billion at current prices. Part of the growth will come from restructuring traffic in major hub-and-spoke airports, placing larger capacity regional jets in markets traditionally occupied by jets with 50 seats. Another driver is the lower fuel consumption the new jets will offer – a compelling reason for regional airlines to upgrade.

Embraer has staked its claim to the larger regional jet market with its E-jet family, with more than 1,560 orders and more than 1,100 deliveries since 2004. In 2013, Embraer launched the second generation E-Jets E-2, with various passenger capacities scheduled to enter service from 2018 to 2020.

Bombardier’s entrants in the 100- to 149-seat market segment, the CSeries CS100 and CS300, have logged about half of the hours planned for the initial flight test vehicles, with an anticipated entry into service of the first CS100 scheduled for 2016. Bombardier thus far has firm orders for 243 CSeries airliners.

Meanwhile, Mitsubishi Aircraft’s 70- to 100-seat MRJ regional jet, with 223 firm orders to date, has aircraft being readied for flight tests beginning later this year.

Also consider that all of these jets will use Pratt & Whitney’s PurePower Geared Turbofan engines, and by extension, the supply chain that will support their manufacture and maintenance.

Regional airlines’ impact on aerospace manufacturing is substantial – even if you don’t recognize their names.

 

– Eric