Air Transport World

Role of Regionals likely to expand.(Regional News)(planning)(Brief Article)

Last year was one of transition for Regional airlines, according to James Parker, MD at Raymond Jones & Associates. "The dynamics of the Regional airline business are different this time around," he observed. "The legacy carriers cut the Regionals' profit margins, growth has slowed and contracts have been opened to the lowest price providers." But Regionals still are enjoying margins of around 10% and can look forward to continued growth as they become the domestic spokes for legacy carriers, he believes.

Parker singled out Mesa Airlines as the "clear winner" over the past year because it accepted a lower margin of around 8% in exchange for increasing dramatically the number of regional jets it has in operation for legacy carriers. …

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