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RJ Costs



 
 
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Old January 19th, 2005, 04:50 AM
Clark W. Griswold, Jr.
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Default RJ Costs

Someone was asking recently about how much it costs to fly an RJ. AvWeek has
some interesting numbers in a recent issue.

CASM = Cost Per Available Seat Mile consists of three major components - labor
(28%), maintenance(17%), ownership (17%)

Interesting that fuel costs are not one of the 3 largest.

The article confirms that as airlines use RJs for longer flights, the fixed
costs of a given flight can be amortized over more miles, thus making the cost
per mile drop significantly. Average stage length has gone from 205mi to 400mi
in the past 7 years.

CASM has dropped from 0.19 to 0.13 over that same period.

These figures are from regional carriers and affiliates, not blended from their
mainline parent.

Maintenance and labor costs are expected to increase.

Compare to mainline CASMs of 0.08 to 0.12 depending on airline.
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