Small Community Service Prospects Faye Malarkey Regional Airline Association Federal Aviation Administration 30th Annual Aviation Forecast Conference March 18, 2005. Regional Airline Facts. Estimated 129 million passengers transported in 2004 More than 15,000 flights a day
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Small Community Service ProspectsFaye MalarkeyRegional Airline AssociationFederal Aviation Administration30th Annual Aviation Forecast ConferenceMarch 18, 2005
(95% of total)
United States (98% of total)
only air service at 72 percent
of these airports
(as of January 2005)
Code-sharing airlines transport 99% of passengers
Turboprop routes have dropped 54 percent over the last decade (from 1429 routes to 651).
The shortest bands drop at the highest rate due to availability of substitute products (car, bus, train, access to LCC by driving to alternative airport)
Source: BACK / OAG Schedules Database
*Source: “A Significant Co-Dependence” by Aaron Taylor, Eclat
Regional airlines affected by major carriers finances
Regional airlines must maintain or reduce costs or will be priced out of the market
Majors have many choices for partners
Lower ticket prices and yields have caused majors to reduce “fee per departure” contracts
Regional carriers with “pro-rate fee” agreements seeing less income due to lower ticket prices
Source: DOT OIG
1972Taxes = 7% ($15)*
2004Taxes = 26% ($52)*
1992Taxes = 15% ($29)*
*Sample itinerary assumes one-stop domestic round-trip with maximum passenger facility charge (PFC) per airport; $200 total price includes taxes and fees.