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 <subject>Competition</subject>
 <subject>Cost effectiveness analysis</subject>
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<titleInfo>
 <title>Aviation Competition: Regional Jet Service Yet to Reach</title>
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<abstract>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&apos;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&apos; RJ strategies may warrant
continued oversight.</abstract>
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<note>Letter Report</note>
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 <topic>Airports</topic>
 <topic>Airline industry</topic>
 <topic>Commercial aviation</topic>
 <topic>Competition</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Aircraft</topic>
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  <title>United States Public Law 181 (106th Congress)</title>
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 <identifier type="public law citation">Public Law 106-181</identifier>
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