Dual Designators Making Big Impact on US Commuter Scene

The benefits of this of course are obvious as more than 80% of bookings are made in the US on what is termed the first screen system. If the travel agent or reservations clerk has to access the second screen on their CRTs then in a busy environment it more than likely costs a small carrier business. When displayed on the first screen though in a company with a major, as a part of that major’s network, then the commuter rapidly picks up traffic that would have formerly been difficult for it to snare.

This dual designator system has revolutionised the third-level US air transport system in recent years and helped reinstate services to many of the smaller communities that for a time lost their established RPT services following the scramble for major routes that took place during the early years of deregulation. It _has also brought about a boom in high-speed pressurised 18 and 30/36-seat class airliners resulting in substantial sales for the BAe Jetstream, Beech 1900, SF340, Brasilia, Dash 8 and the ATR42.

Just how big is the US third-level scene? During 1984 US commuters (which actually operate aircraft up to F27 and YS11 class) uplifted some 26 million passengers. For 1984/85 all the Australian scheduled services, major and regional alike, only uplifted just over 11 million pax! At the beginning of 1986 there were 190 US regionals, 48 of which were linked directly with 13 of the majors. Needless to say these 48 were also the top performing operators through 1985. The leading group have all doubled their enplanements since 1980 and are today judged by Wall Street as excellent investment material, itself a direct contrast to the often precarious performance of their “parents”. Share value for ASA (whose first Brasilia toured Australia last year) rose by 204%during 1985 while Air Wisconsin ( + 84%) and Comair ( + 69%) all became hot stock according to Commuter World magazine.

Growth for many operators is measured by the month rather than the year as their newly found dual designator link-ups allow them to tap a fount of air travellers not previously possible. In 1982 no US commuter carried more than 1 million pax (East West hope to carry 1m pax this fiscal year), by comparison in 1985 all of the top ten comfortably exceeded this figure while several of them recorded gross revenues in excess of US$100m taking them literally out of the commuter class and into the world of the nationals. During 1985 US regionals, as a whole, averaged a nett return of a startling 10% on their investment, which is more than double the return of the better majors. In fact, based on levels of return, three of the most profitable US carriers during last year were commuters!

Locally the two domestics, Ansett and TAA, have made use of linking in with approved smaller operators a major consideration of their operations for a number of years. Ansell for instance has full oncarriage rights with a number of larger commuter operators including the rapidly expanding Kendell Airlines. Ansett also still benefit from receiving oncarriage from Air Queensland despite that airline having been purchased by TAA early in 1985. TAA itself enjoys an often tenuous relationship with East West and no doubt is concerned that if EWA should be allowed to operate direct trunk routes in the future then it will lose most of its present-day oncarriage into Sydney. This is one reason why TAA is presently fighting hard to gain access to the NSW intrastate system.

A number of Australian regionals have stepped up to larger airline-class equipment. Sunstate and Murray Valley both operate Shorts 360s and link in with TAA while Kendell has Mertroliners and Saab SF340s feeding directly into the Ansett jet network in both Adelaide and Tullamarine. In fact the demise of Airlines of South Australia’s F27 operation and subsequent replacement with vastly more economical SF340s and Metroliners operating enhanced frequencies is a key characteristic of how the US regionals have grown. Norfolk Island Airlines are also looking at larger equipment while Lloyd Aviation are also still actively pursuing the purchase of a 30/36 seat commuter.

With the introduction of dual designator status, the American commuter scene has at last grown out of its turbulent adolescence of the early eighties and taken on the appearance of well-managed, better-financed feeder airlines for the large majors. That in time the same transition will occur here is almost without argument as a new breed of airliner opens up third-level traffic possibilities not previously available to the regional transportation system.