Limiting myself to soundbites here, as I won’t be spending half a day here:
Flanker wrote:DKR and ABJ costed a few millions at best.
DKR alone costed 20M euro due to the wetlease, continued operation of the de-triangled flights half full and thus at a loss and loosing pax flying SN from DKR to other AFI destinations…
Closing ABJ costed even more…
Flanker wrote:continued cargo revenues (good luck on the Q400 with that)
From 18m³ of the RJ85 down to 14m³ is acceptable
It really isn't, knowing the RJ85 has volume problems on many morning flights already today as from a loadfactor of about 85%, given the fact African pax carry A LOT of hold luggage...
Since you’re plan is to use the Q400 to capacity you’d have the same issue with it, also at about 80%. Your business case of the Q400 however relies on planes filled to cracking (frequency fragmentation, remember), so that basically means SN would have to bar cargo on their flights completely then.
Flanker wrote:lowered unit costs (from the bigger pax volumes),
The pax volume can be matched by higher frequency services
Which in turn requires more planes, thus higehr crew numbers, higher back office staff numbers, and higher overhead costs; not really cutting unit costs in my eyes…
Flanker wrote:less maintenance costs (less inventory and staff)
Less inventory for the A319 but higher inventory costs per unit. Airbus parts are in high demand and expensive for a small fleet like SN's. A lot of the component maintenance (engines, wheels, brakes etc...) can't be done in-house. Staff costs are questionable, since the Q400 doesn't require daily checks that the A319 does
A maintenance program which does include daily checks has the benefit of reducing the cost/time for C checks later. Skipping dailies is not a good option in the long run and is only done by very small companies which lack infrastructure and an in house maintenance department: SN certanly would not do that!
Also, SN can benefit from the buying force of the LH group in building up Airbus inventory (in fact they already do), something they can’t to the same extend for the Q400.
Flanker wrote:higher yield (due to more comfort)
If they keep putting those Recaro seats in the A319's, I doubt there will be more comfort. For business pax, a completely free seat next to you is better than 1 free seat per 2 pax.
If you want to give business class pax a free seat on the Q400, then knowing you’re aiming this market segment, how much ‘lost’ seats do you think you’ll have on an average flight?
And why is it that I don’t see this reflexted in any of your simulations then?
A lost seat on the Q400 is worth 2 on the A319, so for each seat you keep open, any remaining cost advantage the Q400 has letf, gets erased dramatically quickly.
Flanker wrote:The A319 will definitely beat the Q400 on CASM, mainly due to shorter flight times.
It most certainly does and not only due flight time, but also its bigger capacity.
And if you’re honnest with yourself and apply your real business class product strategy to your generic ‘complex calculations’ like you call them, you’ll see just how quickly the turboprop plane gets trashed by the bigger jet. Even on a typical Q400 route like BRU-MAN, you’ll run into problems really soon and a turboprop is only good for off-peak flights which you can not fill, no matter what.
A point-to-point airline will much quicker be faced with stagnating demand than a network carrier, hence the need for relatively small planes to be much weaker from network carriers than from point-to-point carriers... Simply ignoring the fact SN is a STAR alliance member and gets very good feed from it (and increasing) isn’t contributing to a correct estimation of the bottom line here...
Flanker wrote:However, the lower costs of operating the right capacity with improved frequencies will both reduce costs and increase revenues.
As I’ve told you before, it won’t: you are assuming demand througout the day to be steady: reality is it isn’t: at 8 o’ clock, you’ll have for instance 100 pax willing to go to XYZ, at 11 o’ clock however only 10 pax are interested in joining a flight there. If you operate a turboprop with just 70 seats for instance but offer more frequencies throughout the day to compensate, you’ll lose 30 pax on your 8 o’clock flight -in fact, you’ll lose more even due to yield management restrictions- and operate a flight at 11 o’clock with maybe 20 pax (those original 10, plus 10 you may have convinced to wait iso take the competition).
The bottom line is that you’ll have to operate 2 TP flights: one at (almost) 100%, one at only 25%, meaning an average loadfactor of bot even 65%, really not such a great idea!
Operating a second flight for the overall same number of pax than you could load in a singe A319 isn’t really reducing costs, and not making higher yields either…
I’ve said it before and I stick to it: the turboprop makes PERFECT sense for relatively SHORT routes, on condition demand is LOW, meaning off-peak for both point-to-point (first wave) as well as network pax (second wave). Looking at our network, that means about 20% at best.
RMK: I will pull out of this discussion, I've done my best to explain why the turboprop has only a very limited use for network carriers, and certainly isn't a good platform to operate longer flights with on routes which see a fairly good demand and/or have competition on them, yet 2 days into this topic and we're back at the same as before, including all the yelling and even the offences... Maybe the moderator can step in before this turns too nasty?