Conclusions

The increasing numbers of RJs in operation have provided U.S. air carriers  with opportunities to serve new and existing markets. As we have noted,  with predominantly 50-seat aircraft, the carriers have initiated service to  many large and medium-large communities but have provided less service  to smaller communities. Service to small communities—to which the  airlines now mostly operate turboprop aircraft—continues to be an  important concern, because of the uncertainty about whether those  markets may generate enough passenger traffic and revenue to be  financially viable to sustain RJ operations. Eventually, smaller RJs (i.e., 32-  or 37-seat aircraft) may let carriers serve those smaller communities  economically. Other questions also emerge about the impact of how the carriers will use  their RJs. For example, the airlines could restrict capacity in a market by  reducing service with larger mainline jets but increasing the number of RJ  flights in a way that may inhibit entry by new competitors, allowing the  airlines to charge fares higher than might exist in a more competitive  market. Additionally, the growth in RJs has clearly contributed to an  increasing problem with congestion, particularly in some locations like  New York’s LaGuardia Airport. But how the expected growth in RJs may  continue to contribute to congestion and delay remains to be seen. Depending on how events unfold in the near future, these and other  potential impacts of the airlines’ RJ strategies may warrant continued  oversight.
What GAO Found

The increasing numbers of regional jets (RJ) in operation have provided U.S. air carriers with opportunities to serve new and existing markets. With predominantly 50-seat aircraft, the carriers have initiated service to many large and medium-large communities but have provided less service to smaller communities. Service to small communities--to which the airlines now mostly operate turboprop aircraft--continues to be an important concern, because of the uncertainty about whether those markets may generate enough passenger traffic and revenue to be financially viable to sustain RJ operations. Eventually, smaller RJs may let carriers serve those smaller communities economically. Other questions also emerge about the impact of how the carriers will use their RJs. For example, the airlines could restrict capacity in a market by reducing service with larger mainline jets but increasing the number of RJ flights in a way that may inhibit entry by new competitors, allowing the airlines to charge fares higher than might exist in a more competitive market. Additionally, the growth in RJs has clearly contributed to an increasing problem with congestion, particularly in some locations like New York's LaGuardia Airport. But how the expected growth in RJs may continue to contribute to congestion and delay remains to be seen. Depending on how events unfold in the near future, these and other potential impacts of the airlines' RJ strategies may warrant continued oversight.