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Author Topic: Are Embraer ERJs ever profitable?  (Read 1011 times)

TechnicianX

  • Former member
Are Embraer ERJs ever profitable?
« on: November 03, 2010, 05:33:32 AM »
Hi everyone.

I'm wanting to ask this simple question to other players from the current and previous modern times worlds: have you ever been able to operate an ERJ fleet with significant profits? 

In my personal experience I've found the aircraft never seem to generate any money once the lease payments come in.  This applies to all sizes, a previous airline of mine almost sunk thanks to these and my current ERJ is losing about $6k a month with little room to improve.  Turnaround, distance (500-600nm), and capacity on the ERJ145 mean the one I'm operating now is kept flying by my Boeing 737.  Wish those Saab 2000s had come onto the market before I leased two more ERJ140s (yet to be delivered)...

Offline mtnlion

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Re: Are Embraer ERJs ever profitable?
« Reply #1 on: November 03, 2010, 06:07:34 AM »
They can make money if you own them and make sure that they are utilized well.

But if you have a leased ERJ145 flying two 1000nm legs a day, you are going to lose lots of money.

Offline Maarten Otto

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Re: Are Embraer ERJs ever profitable?
« Reply #2 on: November 03, 2010, 09:02:37 AM »
In other words... no you can't.

Even when it's owned, It will cost you money as you have to write it off over a 7 year period before the aircraft pays back for itself. By that time fuel prices have reached $600 to $1100... and again you fail to operate them at a profit.

Offline Sami

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Re: Are Embraer ERJs ever profitable?
« Reply #3 on: November 03, 2010, 09:27:40 AM »
I did run a very nice ERJ-145 airline in Norway. Had some 5 145s or so. Noticed that you MUST fly short routes, using them in Oslo-Gatwick was for example too long and caused to eat all profits. So it was very very thin business.

Added 5 ERJ-170s with the five smaller ones and then business started to go well.But small profits with 145s alone too.

TechnicianX

  • Former member
Re: Are Embraer ERJs ever profitable?
« Reply #4 on: November 04, 2010, 01:17:58 PM »
Hmm considering the reason I bought the darn things was long distances, I doubt they'll ever make me any money.  I've turned off lease renewal on all three that I have now since the only one returning a profit (after lease) makes $9000.  Any suggestions on alternatives?  Most regional routes are in the 500-1000nm range with varying capacity needs.  The larger ones have my B733 running, what would be a good option for the 30-80 seats per day areas?

Offline ArcherII

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Re: Are Embraer ERJs ever profitable?
« Reply #5 on: November 04, 2010, 03:48:50 PM »
Hmm considering the reason I bought the darn things was long distances, I doubt they'll ever make me any money.  I've turned off lease renewal on all three that I have now since the only one returning a profit (after lease) makes $9000.  Any suggestions on alternatives?  Most regional routes are in the 500-1000nm range with varying capacity needs.  The larger ones have my B733 running, what would be a good option for the 30-80 seats per day areas?

For regional, go turboprop. ATR, D-H Dash 8 or Q400. For the Q400 you have nearly the same speed of a jet and in short legs it may only last 5 mins more than a jet, and with half fuel comsumption.

 

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