Abstract
There has been a dramatic growth in regional jet (RJ) operations over the past decade. As of October 2000, major U.S. airlines and their commuter affiliates had deployed almost 500 RJs, defined by the U.S. General Accounting Office (GAO) as jet airplanes with capacities not exceeding 70 seats. The same group of airlines had only 89 RJs in service in 1997. This paper addresses two questions. The first is how RJs are being utilized by the airlines. This question is explored by presenting a case study of Continental Airline's introduction of regional jets at two of its hubs, in Cleveland and Houston. The second question is how the use of RJs impacts passenger demand. The results indicate a significant demand effect for RJs, and suggest strong passenger preferences for RJs over turboprop aircraft.
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