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The US Regional Airline Market needs something new

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Over 70% of the world’s regional airline flying is within the United States.  This requires any regional airliner to be US-compliant. That means, Scope Clause compliant. This odd rule has led to the cancellation of the Embraer

E175-E2 and the Mitsubishi SpaceJet. Mitsubishi (MHIrj) went on to acquire the CRJ line from Bombardier and now offers MRO support to this aging fleet.

The recent news about the MaeveJet at the Paris show prompted us to reassess the state of the US regional market.  The following data points are crucial to comprehend where the industry is headed.

  • CRJ200 / CRJ100 (50 seats):
    Roughly 250 remain in US operation—down from about 1,200 in 2007.  This segment remains attractive if a better economic and technical solution becomes available. 
  • CRJ700:
    Approximately 242 are currently active globally. These aircraft are primarily in US service, and operators won’t give them up.
  • CRJ900:
    Around 392 in service worldwide.  This model is the most popular of the CRJ family in US service. 
  • CRJ1000:
    Only 29 are in active operation globally (e.g., with Air Nostrum, Hibernian), but none operate in North America. 

The lack of any new technologies is frustrating for US regional airlines. The E175 is a fine aircraft, but why buy a new E175 when it offers very little improvement over the original, which was introduced in 2004? Embraer has improved efficiencies by about 7% and tweaked the cabin. But this isn’t enough to excite operators.  New orders, such as the one recently announced by SkyWest, reflect that this is the only new build model available.