The Runway Girl blog just posted this report on SAAB, Embaer and China with respect to the growing demand for turboprops. 

It’s *very* interesting to me that Embraer has begun studies on a new family of turboprop aircraft.  This is an industry they cut their teeth on and many may still remember their small commuter aircraft from the 80’s and early 90’s. 

The report takes note that most demand for turboprop aircraft is currently in Europe and Asia.  However, it seems like there will be rising demand here in the US over the next 2 years.  Horizon Airlines, the commuter feeder for Alaska Airlines is phasing out its older DH-8-200 aircraft in favor of an all Q400 (really a DH-8-400 Quiet) fleet.   Also, Continental now owns several Q400 aircraft (and has orders for more) that are operating out of Newark with great success. 

The real demand will begin when legacy airlines who contract with regionals (Mesa, Pinnacle, ASA, ExpressJet, Air Wisconsin, etc) ask for turboprops and better revenue.  My guess is that Delta/Northwest will lead here but it might be Continental.  American Airlines and United will be followers, not leaders in this if I’m guessing right.

The economics of operating these aircraft on short hops and commuter routes is just too good to ignore and even if oil does drop below $100, it will never be $30 a barrel again. 

Filed under: Airline Fleets by ajax