
Cincinnati-based Comair will close its doors at the end September, and nearly 2,000 people will lose their jobs as a result. Granted, the reasons for the airline’s demise might not matter much to them, but perhaps an examination of the forces that led to Delta’s decision to shutter its subsidiary will prepare others for a similar fate.
After a decade of explosive growth, the regional airline industry has virtually stagnated over the past couple of years, while consolidation and bankruptcies have seen the Regional Airline Association’s airline member ranks shrink to around 30 from nearly double that number in 2003. Meanwhile, the 50-seat jets that drove the growth of the regional airline industry for so long have turned into liabilities. High fuel prices have seen to that. Unfortunately for the regionals, restrictions on the number and size of airplanes they may operate haven’t lifted to the point to allow for enough cost-efficient replacements to offset the loss in seating capacity. Mainline pilot unions have seen to that.