PiedmontINT
Topic Author
Posts: 220
Joined: Sun Jul 10, 2005 8:12 am

Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 3:26 am

Everyone knows that the proliferation of 50 seat RJ's are causing many Regional Carriers to see red on their balance sheets, not new news. The Independence Air debacle proved that a standalone airline operating CRJs almost exclusively would be doomed due to the poor economics of 50 seat RJ's in general. However, XE is trying a similar business plan of operating 50 seat E145's and is seeing decent load factors and minimal losses. Of course they still operate as an express carrier for CO and DL, but the standalone side seems to be doing well considering they are a new carrier (to the general public at least) and skyrocketing fuel costs.

Which begs my question, what are some of the economic advantages the ERJ has over the CR2?
 
kcrwflyer
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 3:34 am

I'm pretty sure the CR2 burns more fuel, but also has a slightly higher MTOW. I think thats about it though.
 
bohica
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 4:50 am



Quoting PiedmontINT (Thread starter):
The Independence Air debacle proved that a standalone airline operating CRJs almost exclusively would be doomed due to the poor economics of 50 seat RJ's in general. However, XE is trying a similar business plan of operating 50 seat E145's and is seeing decent load factors and minimal losses.

The two carriers have (had) completely different route structures. Independence was a hub and spoke system with all its eggs in one basket (IAD) while Express Jet is a point-to-point operation spread all across the country. You can't compare the CRJ vs. ERJ with the FlyI/Xjet example.

One way to compare the CRJ vs. ERJ is to find an airline which flies both types. Mesa comes to mind.
 
PiedmontINT
Topic Author
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 5:01 am



Quoting Bohica (Reply 2):
You can't compare the CRJ vs. ERJ with the FlyI/Xjet example.

I'm not comparing the airlines per se, I am wanting to know the advantages the ERJ may have over the CRJ in performance, fuel burn, etc etc.. that will lead to lower per seat/mile costs for each pax and the fundatmental differences in each aircraft even though the carried the same number of pax.
 
AA737-823
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 9:00 am

If I remember correctly, the consensus a few years back on this board was that the ERJ burned a bit less fuel, but the CRJ had lower overall maintenance costs.
 
LAXintl
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 3:09 pm

Per DOT industry numbers the ERJ145 stacks up to the CRJ200 as follows on a per block hour basis for 12months ending June 2007.

ERJ145
Crew-$274
Fuel/Oil-$482
Ownership-$430
Insurance-$1
Taxes-$14
Maintenance-$338
Burden-$14
Other-$15
TOTAL-$1567

CRJ200
Crew-$238
Fuel/Oil-$568
Ownership-$406
Insurance-$4
Taxes-$20
Maintenance-$243
Burden-$20
Other-$9
TOTAL-$1508
From the desert to the sea, to all of Southern California
 
A342
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 4:33 pm



Quoting Laxintl (Reply 5):

That's interesting. I don't get two things:

1.Why is the crew cost different?
2.Why would the CRJ command insurance premiums four times as high as the ERJ?
Exceptions confirm the rule.
 
LAXintl
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 4:53 pm

The average very much have to do with variances of each operator for the type.

The ERJ145 stats are based on American Eagle, ExpressJet, Mesa and TransStates while the CRJ200 data is based on ASA, Air Wisconsin, Comair, Mesa, Mesaba, PSA, Pinnacle and Skywest.

For instance hourly crew cost for the ERJ145 varies from a low of $170 at Mesa to $311 at ExpressJet. Insurance on the other hand is $6hr at Mesa on the ERJ, while $0 at AE- Assume larger AMR picks up the tab and is not expensed out individually for Eagle.
From the desert to the sea, to all of Southern California
 
Cubsrule
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 5:41 pm



Quoting A342 (Reply 6):
2.Why would the CRJ command insurance premiums four times as high as the ERJ?

Even outside of the carrier-specific costs, if I were an insurer, I'd probably charge somewhat more in insure the CRJ. It HAS had more hull-losses (and more fatalities). It's not like the CRJ is necessarily an inferior airplane, but insurers tend to like numbers, not subjective ideas of "better" and "worse."
I can't decide whether I miss the tulip or the bowling shoe more
 
A342
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RE: Economics Of ERJ-145 Vs CRJ-200

Tue Nov 13, 2007 6:47 pm



Quoting Laxintl (Reply 7):



Quoting Cubsrule (Reply 8):

Thanks for the answers.
Exceptions confirm the rule.