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Smaller commercial jets such as Embraer and Canadian Regional exist not only to serve smaller airports and smaller markets (as alleged in this article), but to offer more convenient flights that could easily fill large pr Boeing and Airbus aircraft.
For example, last Monday Republic and Endeavor Air flew nine separate flights for American and Delta airlines from Indianapolis to LaGuardia between 8:30am and 7:40pm using the smaller regional jets. Clearly American and Delta could switch and fill larger planes. But they would not do it for the same number of flights.
Offering more flights means more convenience to the flyer, perhaps even at less revenue than if everyone was forced to fly on large planes with fewer daily departures.
Yes, but smaller mainline A220s will eventually replace a lot of contracted regional service.