NWA: Large RJs could work in 100 markets
By Perry Flint, ATW Website | Jan. 09, 2006
Northwest Airlines' markets are particularly well-adapted for new-generation large regional jets, the company argues in a special edition of its internal newsletter Passages.As previously reported, the carrier is seeking permission from its pilots, represented by the Air Line Pilots Assn., to create a standalone subsidiary to operate 70/100-seat jets (ATWOnline, Jan. 6).
"Northwest has a disproportionate need for smaller regional jets," the company stated. "Despite having only 12% of domestic revenue, the lowest" among the Big Six network airlines, "Northwest operates in 20% of the markets that would be optimally served by 70- to 100-seat jets." It said approximately 100 of its domestic markets are the right size for the RJs. Example city-pairs include Minneapolis-Albuquerque and Detroit-El Paso. Already, competitors fly large RJs in 111 city-pairs "in the Heartland," a situation Northwest "must quickly address."
By 2010, NWA estimates it will need 60 70/76-seat RJs and 45 100-seaters. Thirty-five of the smaller aircraft will be used to replace 35 Avro RJs "that are simply too expensive and inefficient to operate," with 25 more acquired for growth. Of the 45 100-seat jets, 19 are needed to replace DC-9s that must be retired soon and 26 are intended to meet new demand.
The size requirement appears to rule Northwest out as a possible launch customer for Bombardier's proposed CSeries, which would seat 110-130 passengers, but makes it a likely buyer of the Embraer 170/190 and/or CRJ700/900 families. For those in the company who worry the airline will use the small jets to replace its DC-9s, Passages states that it will continue to operate DC-9s, primarily DC-9-40s and dash 50s, well into the future--2015 and beyond.