Leeham News and Analysis
There's more to real news than a news release.
There's more to real news than a news release.
Leeham News and Analysis
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The Struggling European Regional Airlines
- This is the third in a series of articles on the struggling low cost and leisure carriers in Europe.
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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.