Friday, 7 September 2018

USA: SkyWest To Continue Flying Large Number Of 50-seat Regional Jets

SkyWest Inc. plans to maintain up to 50% of its fleet as 50-seat regional jets (RJs), projecting sustained demand in markets that cannot support larger aircraft, CEO Chip Childs said.

We see a tremendous opportunity long-term to have that aircraft serve small communities, Childs told the International Aviation Forecast Conference in Denver Aug. 20.

We have not parked our smallest RJs, and we likely will not.

Utah-based SkyWest Inc., which operates SkyWest Airlines and ExpressJet Airlines, both regional feeders for mainline carriers—had a 583-aircraft fleet as of June 30. More than half—298—were either Bombardier CRJ200s or Embraer ERJ135/145s.

It plans to end the year with 585 aircraft, continuing a trend of right-sizing its fleet so it is large enough to capitalize on opportunities, but small enough to be somewhat isolated from demand fluctuations.

Since ending 2014 with 717 aircraft, SkyWest steadily has reduced its fleet, ending each year with fewer aircraft than it had at the start.

It also has adjusted its ratio of smaller aircraft to dual-class models from a 70/30 split in 2014—including some turboprops—to the 51/49 split projected for year-end 2018.

We were just too big, Childs said. Bigger is not always better, but better is better.

SkyWest plans to take delivery of 39 Embraer E175s in 2018, including 20 in the second half of the year. Thirty will fly for Atlanta-based Delta Air Lines, while the rest will support Alaska Airlines’ network.

Childs noted the company is on pace to hire a record number of pilots in 2018—part of the increased role the regional airline industry is playing as a cockpit crewmember pipeline for mainline carriers.

SkyWest, which does not release specific hiring numbers, also is screening out more pilots than ever, he said.

While these trends may suggest a strong pilot candidate pool, Childs added he remains concerned about longer-term trends that point to a shortage, especially among smaller commercial operators.


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