Yes, CRJs can be profitable

[ekaneti]

There is an assumption in AWS that an airline cannot make a profit utilizing CRJ aircraft (I cannot speak for ERJs). While they CRJs are not as profitable as large turboprops (which can command 50-60% margins), it is very possible to get a 35% profit margin on a CRJ. Here is how:

1. Fly short routes and fly frequently. I have found as a rule of thumb that you take the number of seats multiply by 10 and add 15-20% and that is the max range you should be flying. So a 50 seat CRJ should fly no further than 600 miles. A 68 Seat CRJ7 no more than 800 miles and a 80 seat CRJ9 no more than 900-1000 miles tops. So trying to fly a CRJ-200LR 1500 miles is absolutely futile and will result in huge fuel bills and unprofitable routes.
Flying frequently spreads out the fixed lease cost over as many segments as possible, thus reducing average total cost per trip. Another plus for short routes.

2. Look for low lease CRJs. CRJ lease prices vary. It is possible to get a CRJ7 for less than a CRJ2 and a CRJ9 for less than a CRJ7. That doesnt mean buying a CRJ with only 50% condition or a C check coming next month. Good quality CRJs can be available at reasonable prices.

3. If #1 and #2 are true, then...........Why do so many players in AWS buy LR and ER models?  Then use them on routes that dont require such long range. LR and ER models have much higher lease costs, are heavier and use 10%+ more fuel. Given you cant make much of a profit on even the CRJ9 on routes over 1000 miles, why is anyone buying the ER and LR models, when basic models will do just fine? Dump the ER and LR models.

4. No discounting of pricing. When you start a new route, your LF will be low (30-40%) for a few days. But unlike the 737 or A320 family, discounting isnt required. Within 1-2 weeks game time youll  see your LFs rise into the 70s, without any price discounting.


So yes you can have a fleet of CRJs (-100s are best for short routes with low lease expenses) and be successful.

[swiftus27]

What is the current fuel price in your game?

[ekaneti]

I am playing in ATB. Price is high around $700. I should have mentioned that

[swiftus27]

the only major problem with your scenario is that you are more than likely flying these routes with little or no competition.  A half full CRJ is simply a loser.

[yyebo]

While by having turbo props you can have a gross margin at 65%, why choose CRJ?

In real business or in this game, maximise your ROI is essential.

[GDK]

While by having turbo props you can have a gross margin at 65%, why choose CRJ?

To have a more challenging life and gain the pride of doing something people failed to do.

[ekaneti]

While by having turbo props you can have a gross margin at 65%, why choose CRJ?

In real business or in this game, maximise your ROI is essential.

I have found in some instances, you can get an extra segment per day with a CRJ versus seven a Saab 2000 or DH8-400. This greatly improves profitability. For instance I am flying YHZ-EWR 3x daily with a CRJ-200. With a Saab I wouldnt be able to get in three segments. You could do 2 segments and have some time left over for a single roundtrip somewhere nearby, but those markets are already full with capacity. So the CRJ is better than the Saab in this rare instance.

[ekaneti]

I am currently evaluating which CRJ , the 200, 700 or 900 offers the best profitability given fuel and lease expense versus revenues. Right now believe it or not the -700 looks worse. It looks to have proportionally more costs than revenues versus the -200s. So costs go up more than revenues. But my study is incomplete.