As the air transport industry slowly recovers from a sagging global economy and persistent geopolitical unrest, regional airlines have recast themselves as agents
for change in a business often criticized for its inflexibility and lack of fiscal discipline.
But despite their robust traffic gains, regional airlines can hardly boast of windfall profits, as the rise of low-fare carriers and a newfound emphasis on cost control by mainline partners continue to suppress yields. Consequently, from the end of 2000 through early this year regional aircraft order books showed little more than cancellations and delivery deferrals as customers struggled to negotiate reasonable financing terms.
Meanwhile, new regional aircraft designs conceived during the 1990s market stood ready to vie for airline acceptance. Unfortunately for those who staked their futures on costly new aircraft programs, the timing
couldn’t have been worse, as apprehension in both the consumer and financial markets spelled the demise of such programs as the BAE Systems RJX and the bankruptcy of Germany’s Fairchild Dornier.
