Introduction

The aviation industry of the USA has been flourishing for the last few years after they are successful in reducing mainline costs. Regional jet (RJ) from Columbia to Atlanta has been chosen for the project since it is more advantageous over other flights. It deserves peak pricing due to various reasons that has been illustrated in this project. However, the pricing strategy of regional jets from Columbia to Atlanta connecting all the network cities such as New York, Ithaca and Lowa, represents as peak priced along with cross-subsidization. Regional jets gained popularity and demand due to its instant availability and lesser capital costs.

Discussion

The regional jets of USA offer short and scheduled aviation service communicating with major cities. The costs of the regional jets are peak priced because the regional jets operate under major carrier that markets the jet under a designator code. It has been observed that the fraction of passengers travelling in regional jets is almost one-fifth of mainline flyers (Nikolicet al. 2019). The routes covered by regional jets are below 1500 miles that are low density but efficiently travelled by these jets every day. The regional jets play a significant role in the US aviation industry by scheduling transportation in most of the North American airports (Tan, 2018).

The main causes of peak pricing

• Greater comfort in travelling in lesser fuel consumption
• Flying efficiency  is higher than turboprops
• Safer to travel since the crew members are much expertise in handling situations
• Regional jets exceed the standards of FAA comparative to other airlines

Conclusion

The aviation and transportation department of USA ensures that it renews the license of regional jets and monitors the safety measures at frequent intervals. The regional jets can carry a minimum of 100 passengers at a time which is sometimes accommodated into major carriers from remote airports. Revenue sharing and fixed fee contracts between mainline and regional aircraft where regional serve routes coordinating with major also affect high pricing of these aircraft.

Reference list

Nikolic, J., Zhong, S., Pei, L., Bian, X., Heilman, W. E., &Charney, J. J. (2019). The sensitivity of Low-Level Jets to Land-Use and Land-Cover Change over the Continental US. The atmosphere, 10(4), 174.

Tan, K. M. (2018). Outsourcing and price competition: An empirical analysis of the partnerships between legacy carriers and regional airlines. Review of Industrial Organization, 53(2), 275-294.