U.S. Airlines to Discontinue Use of Small Jets

US Airlines will discontinue use of small jets

United States airlines like Delta plan to remove 50-seat planes from their fleets because of higher fuel and maintenance costs.

Only about 200 of these small jets will remain in use by 2015, down from about 1,200 currently, said Michael Boyd, president of Boyd Group International Inc. based in Evergreen, Colorado. At least 80 jets have been culled so far this year, Boyd said.

“These are litters of aluminum kittens — nobody wants them. Their only value is for recycled metal,” Boyd said. “The next stop is the Budweiser factory because that's all they're good for.”

Delta pioneered the use of the 50-seater jets during the 1990s, but has announced on September 1 its decision to discontinue the use of three-fourths of the small planes.

The price of oil has averaged $77.93 through September 2, increasing 39 percent from 2009. This has forced airlines to prefer larger jets that seat 70 or more passengers, and that fly less often, or purchase turboprops which are economical to operate and maintain.

Comair, a unit of Delta, has decided to get rid of 53 Bombardier Inc. CRJ-100 and CRJ-200 planes to cut costs, and represents a “defining moment on the long road to 50-seat oblivion,” said Richard Aboulafia, an analyst at consultant Teal Group based in Fairfax, Virginia.

“The economics are awful, especially in a time of high fuel prices,” Aboulafia said. “It makes sense if you're focused on market share, hub preservation and other really outmoded concepts. But if you're focused on profitability, then 50-seats begin to look awful.”

Posted by Sophia Andrews on Sunday September 05 2010, 8:26 AM EST. All trademarks acknowledged. Filed under Featured News, Travel. Comments and Trackbacks closed. Follow responses: RSS 2.0