US Regional Consolidation Began Before Covid

Second in a Series on the Future of Regionals Subscription Required
Introduction
By Kathryn B. Creedy Aug. 6, 2020, (c) Leeham News: Many might assume the recent loss of three regionals – Compass, Trans States and ExpressJet – is Covid related. What is actually happening is the long-anticipated consolidation of the regional airline industry coupled with fleet restructuring and the most recent fallout of the pilot shortage crisis that began in 2013. Reducing the number of regional partners also streamlines the inherent inefficiencies of the regional/major model.
Summary
  • Regional airline industry is volatile.
  • Mainline-regional model broken for many years.
  • Rising costs eliminate some advantages.

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