The Struggling European Regional Airlines

  • This is the third in a series of articles on the struggling low cost and leisure carriers in Europe.
Subscription Required By Vincent Valery Introduction        Sep. 23, 2019, © Leeham News: Numerous European regional airlines are struggling financially. FlyBe was sold earlier this year for a symbolic amount to Connect Airways. The new airlines' shareholders are Stobart Air, Virgin Atlantic and Cyrus Capital Partners. UK regional carrier flybmi ceased operations earlier this year. Air France announced a 15% cut in domestic capacity at regional subsidiary Hop! after years of steep losses. In spite of their struggles, European regional airlines represent a significant market for aircraft OEMs. The Airbus A220, Embraer E2 and turboprop programs count on new European airline orders to bolster their order book.
Summary
  • A fragmented industry;
  • Another prevailing business models than in the USA;
  • Influence of geography and public transportation;
  • Dearth of latest generation aircraft orders;
  • External factors threatening the industry.

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