US Regional airline restructuring Part 2. Towards an independent regional force; & regulatory change

As a result of industry consolidation, restructuring and the loss of hundreds of markets, U.S. regional airlines are sitting on a potential goldmine, according to industry veterans. But, in order to cash in, they need regulatory relief - and for that they must make the case that it is not airlines who need the relief but business travellers and the small- to medium-sized communities.

Major airlines are no longer interested in subsidising small community air service, Delta CEO Richard Anderson is on the record as saying. So this points to new directions, challenges and opportunities. To understand the size of the opportunity two statistics tell the story. In the 1980s regional airlines served about 800 markets, most of which were off hub. As of Jun-2014, that number was down to 431 - a striking loss of over 200 markets since 2013.

This second part of our US regional airline report reviews the potential upside in what is presently a challenged market and why a resurgence would be good for consumers and regional economic development.