Economics and Technology

Turboprop vs. Jet

WSJ (July 9, 2012) reports that “Turboprop aircraft makers ATR and Bombardier are seeing orders swell as more carriers switch from jets.”  But the economics of this decision still is and will be muddled with regulations, and the final outcome is uncertain.  The switch to turboprop may be used as another example of economic decision making when a resource (fuel, in this case) becomes cost inefficient.  For more details on turboprop vs. jet, read here.  Currently the turboprop technology is more efficient for short routes and small airplanes, but the airlines apparently would like to see a larger size of aircraft.  General  Electric is looking to develop turboprop engines with greater efficiency.  // *