OPERATIONAL COSTS

Time is key in operations and quick turnarounds help in better revenues. “On a 300 nm sector, a regional jet can save as much as 20 minutes when compared to the ATR 72 and around 10 minutes when compared to the Q400. In a typical day starting at 6.00 a.m. and ending at 10 p.m., a turboprop like the ATR 72 can fly eight 300 nm sectors, the Q400 nine sectors, while a regional jet can fly 10 sectors. This allows a 78-seat regional jet to fly more passengers per day, promises greater fleet utilisation and a larger network/frequency with a smaller fleet of airplanes.” When compared with turbofan, turboprop savings on short routes are significant and, according to ATR, can reach five per cent of a brand new aircraft value per year of operation. Even though turboprops are more efficient for regional routes, there is need for capacity and capability building. Presently, turboprops account for over half of all regional aircraft deliveries and are dominant in the 50/70-seat category. On shorter routes, speed difference is too small and cash operating cost and acquisition costs too great to justify the higher costs of a jet. ATR also pointed out that when looking at the 70-seat segment where most competition has taken place, 75 per cent of aircraft ordered since 2005 are turboprops. The era of the once-dominant 50-seat regional jet is now long over. Indeed, the heyday of the 70-seat jet may already have passed by, as market demand now centres on 90+-seat passenger aircraft.

The current regional aircraft fleet amounts to around 7,200 units (30/120 seats), of which 40 per cent are turboprops. The average age of this fleet is 15 years (19 years for turboprops and 11 years for regional jets). The most important markets for regional aircraft have been historically North America and Europe. In the last 10 years, fast developing markets in Asia, Latin America and Africa have fuelled the growth, especially for turboprops. Today Asia-Pacific, North America and Europe represent about 60 per cent of the world passenger scheduled turboprop fleet.

As markets mature and capacities increase in Asia, the deployment has to be based on higher seat configuration aircraft. However, for short haul markets, the best bet is turboprop and for medium haul markets, it is regional jets, besides the factor of passenger load dictating aircraft acquisition. The operator has to look for an ideal mix.