Region Airline Growth

11 Pages 2768 Words

Introduction
The airline industry demonstrated consistent growth throughout the 1990’s. Lower airfares due to slumping gas prices coupled with an overall American economic boom paved the way for these dramatic increases. Simultaneously, the blossoming Internet was making it easier for passengers and less expensive for airlines to coordinate ticket information. The industry was growing and becoming more efficient and profitable. The cumulative effect of these industry advances had a trickle down benefit to all regional carriers as well. Regional carriers with smaller jets were carving their niche into smaller regional markets where, larger airlines were less able to compete. Concerns that existed twenty years ago with regional airlines are all but erased now. The fleet of aircraft used by regional carriers can sustain the same speed and comfort traditionally monopolized by larger aircraft. More importantly, regional carriers can outperform the big airliners when it comes to the number of airports with which they can facilitate service. Passengers that fear a drop in safety when they board a regional airliner need not be afraid because on a per cycle basis (1 takeoff and 1 landing) the regional airliners maintain a comparable safety record to the major airliners. Perceptions on aircraft reliability and pilot quality are also being larger dismissed. What’s more, the friendly partnerships that major airliners are offering regional carriers like participation in the airline scheduling database and granting frequent flyer miles to passengers on regional airlines also help to promote the industry.
The growth that regional airlines exhibited in the 1990’s was exacerbated by the events of September 11, 2001. Now, the decline in passenger travel has left many jets half full. In order to be profitable, an airline must either offer less scheduled departures or use smaller aircraft, Vis a Vis the aircraft operated by regional ...