Topic of the Week: SkyWest Buys Japanese

SkyWest will be buying 100 Mitsubishi Regional Jets. These airplanes seat 70 to 90 people and compete head-on with the CRJ-700/900 and Embraer 170/175/190/195 families. Seems to me that Bombardier really loses out here, because SkyWest flies only CRJs in that size today. I bet Mitsubishi handed out a smoking deal. What do you think?

14 Responses to Topic of the Week: SkyWest Buys Japanese

  1. I agree the deal must have been great. MRJ sales have been slow, and I know there was a set back in the development. It is a blow to Bombardier for sure, who I am sure would love to be selling more CRJ-1000’s, especially on this side of the ocean.

  2. Bob Collie says:

    I think the timing was definitely interesting with this coming on the tails of the DL pilot accord. EV/OO is going to have to drop a ton of CRJ1/2s over the next 3 years for DL to be compliant with the pilot agreement. DL is going to be placing 100+ new 65/76 seaters so maybe DL already has an agreement with OO/EV to handle a lot of this flying in exchange for dropping CRJ1/2s.

  3. Bob Collie says:

    …I must correct myself. From the July 11th SkyWest memo to employees:

    “These 100 aircraft would be replacement aircraft for current ExpressJet and SkyWest Airlines fleets and are fully intended to fly under contract with major partners. They are not growth aircraft. The aircraft identified in the agreement in principle include the MRJ70 or MRJ90, which range from 70 to 90 seats. The configuration of seats would be determined by scope limitations and airline requirements at time of delivery. The intended delivery time frame would be from 2017 to 2020. While specific allocations are yet to be determined, we anticipate that aircraft would be delivered to both of SkyWest, Inc’s operating entities.”

  4. They had to get a good deal as this allows entry into the USA which is always stated as being the largest travel market.

    I always see people complaining about CRJ more then EMBs, so if Mitsubishi has a better product them Bombardier it could mean more orders from U.S. carriers.

  5. u600213 says:

    Nothing against MRJ’s and the timing might be suitable for Skywest’s plans but as a passenger I would prefer E170/175/190/195 delivered yesterday and not delivered beginning 5 years from now.

    Although Skywest has a fine reputation and all, I really hate CRJ200’s and CRJ700’s especially CRJ700’s as flown by Skywest for UA with only 1 lav for the whole plane.

  6. Sanjeev M says:

    Well the CRJ-1000 was a result of Bombardier’s short term anxiety about CSeries sales. Once CSeries goes through to enough customers they really don’t care about the CRJ-1000 that much. SuperJet is a little too big for scope clauses and being Russian doesn’t help US sales.

    The real loser is Embraer as the MRJ is its direct competitor. SkyWest must have gotten a great deal on this one.

    • Airpower says:

      Indeed there are a lot a players in this market at the moment – well done to Mitsubishi for getting a large MRJ order.

      I’d still love to see a US carrier pick up a few superjets though!

  7. 007 says:

    Another good reason to avoid SKY WEST

  8. Eric C says:

    Could this be in part because Delta wants to have a more mainline-like regional experience? They’ve been pushing so hard in that direction that I could see them having a strong preference for the larger cabin RJs.

    The MRJ-90 is a touch bigger (two rows, about) than the CRJ-900. To get it to fit scope at 76 seats would require a lot of wasted space. I suspect the order was made in anticipation of having scope relaxed somewhere else – perhaps American? Would the MRJ-70 be a worthwhile buy for a regional if scope ultimately prohibits the MRJ-90 and presumptive -100?

    It could also be a negotiating ploy against BBD. Remember that SkyWest is facing considerable engine overhaul costs and will likely have to take early lease terminations on some -200s. BBD considers themselves still in the running for the SkyWest refleeting and might have to offer exceptionally good terms in dealing with those engine and lease costs to win future orders.

  9. STLguy says:

    You do realize Trans States Holdings ordered 100 MRJ’s back in 2009 right?

  10. Mike says:

    Flying aint what it used to be!!!! When will they all shut down and go away? Who cares what they get Most of the regional carriers like Pinnacle dont keep enough equipment on site for maintenance any way. You can check Memphis FSDO on Pinnacle….

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