Dieter J. F. Haselsteiner

The Unloved Backbone of European Aviation: Why Regional Aircraft Still Matter

15 June 2026 | Blog #34


European flag carriers don’t really want them - but they simply cannot operate without them: regional aircraft. 

Despite years of downsizing and declining popularity, regional aviation remains a critical pillar of airline business models across Europe. Whether connecting remote domestic regions to capital cities, feeding hub airports with transfer passengers, serving neighboring countries, or linking secondary regional city pairs, regional aircraft fulfill roles that no other transport mode can fully replace. 

 

Why Regional Aircraft Are Irreplaceable 

Regional aircraft - defined here as turboprops of all manufacturers and regional jets up to the size of the Embraer E195-E2 - serve markets where neither large aircraft nor alternative transport modes are viable. 

Several factors make their use indispensable: 

  • Geographical constraints: Mountainous or remote regions limit infrastructure expansion.
  • Airport limitations: Short runways and smaller facilities restrict aircraft size.
  • Low demand: Thin routes cannot economically sustain larger aircraft.
  • Public service obligations (PSOs): Governments subsidize essential routes to ensure connectivity.

Importantly, aircraft such as the Airbus A220 are excluded from this definition due to their higher capacity and longer range, placing them outside the classical regional category. 

Today, the European regional fleet landscape includes a relatively limited range of aircraft types: 

  • Embraer: E170, E175, E190, E195
  • Bombardier/Mitsubishi: Dash 8 (DH1, DH2, DH4), CRJ series (CRJ200, CRJ900, CRJ1000)
  • ATR: ATR 42 and ATR 72

 

A Shrinking Sector Under Pressure 

Over the past decade, European legacy carriers have steadily reduced their exposure to regional aviation. Rising cost pressures, pilot shortages, and fleet simplification strategies have led to: 

  • Route reductions
  • Accelerated retirement of regional aircraft
  • A particularly strong phase-out of turboprop fleets

Out of 27 European national airlines across 31 countries, only 21 carriers (roughly 75%) still operate regional aircraft in some form. 

Conversely, six airlines have completely excluded regional aircraft from their business models: 

  • Turkish Airlines
  • Brussels Airlines
  • KM Malta Airlines
  • ITA Airways
  • Cyprus Airways
  • airBaltic

This reflects a broader strategic shift toward larger aircraft and simplified fleet structures. 

 

Three Operating Models for Regional Aviation 

European legacy carriers that continue to rely on regional aircraft typically do so through one of three distinct models: 

 

1. In-House Fleet Operations 

Only 9 of the 21 airlines still operate regional aircraft within their own fleets. 

  • The standout example is LOT Polish Airlines, operating around 40 Embraer regional jets, making it Europe’s largest in-house regional operator among national carriers.

This model offers high operational control but comes with higher labor and cost burdens. 

 

2. Dedicated Regional Subsidiaries 

About 7 of 21 airlines (one-third) use wholly owned regional subsidiaries focused exclusively on short-haul operations. 

  • KLM Cityhopper leads this category, with a fleet of 58 aircraft, making it the largest regional airline within a legacy group in Europe.

This structure allows cost optimization through separate contracts and operational frameworks while maintaining brand control. 

 

3. Wet Lease Partnerships 

The third - and increasingly dominant - model is wet leasing, where airlines outsource operations to specialized regional operators. 

  • Currently, 9 different regional airlines provide such services to European legacy carriers.
  • The clear market leader is Air Nostrum, operating 38 aircraft for Iberia in Spain.

Wet leasing enables flexibility, lower risk, and scalability - key advantages in a volatile market environment. 

 

The Decline of Turboprops 

One of the more striking findings: fewer than 50% of the 21 airlines (only 10 carriers) still operate turboprop aircraft under any of the three models. 

This decline comes despite the clear operational advantages of turboprops: 

  • Lower fuel consumption on short routes
  • Better performance on short runways
  • Reduced operating costs

However, passenger perception - often associating turboprops with lower comfort - continues to negatively impact their popularity. 

 

Special Case: Air Montenegro 

An interesting outlier is Air Montenegro, which stands as the only European national carrier relying exclusively on regional aircraft. 

Given the country's size, geography, and demand patterns, this strategy is logical and efficient - demonstrating that, in certain markets, regional aviation is not just a complement but the entire business model. 

 

No “All-in-One” Approach 

Notably, no European national airline combines all three operating models (in-house, subsidiary, and wet lease) simultaneously. Most carriers opt for one or two approaches, balancing control, cost, and flexibility. 

 

The Future of Regional Aviation in Europe 

Looking ahead, several trends are clearly emerging: 

1. Continued Shift Toward Wet Leasing 

Airlines are expected to further outsource regional capacity to specialized operators to reduce complexity and mitigate cost pressures. 

2. Phase-Out of Owned Regional Fleets 

Operating regional aircraft in-house is likely to decline further as airlines prioritize efficiency and scale. 

3. Limited Aircraft Choices 

The market offers very few new regional aircraft programs, constraining fleet renewal options and slowing innovation. 

4. Ongoing Importance of PSO Routes 

Government-supported routes will remain essential to ensuring connectivity across Europe’s peripheral regions. 

5. Emerging Technologies Still Immature 

Electric aircraft and alternative propulsion systems are under development, but not yet ready for large-scale commercial deployment. Their long-term potential is significant - but short-term impact remains limited. 

 

Conclusion 

Regional aircraft may be unpopular, often overlooked, and increasingly outsourced - but they remain essential. Without them, Europe’s aviation network would lose its reach, flexibility, and connectivity - particularly in underserved regions. For all the strategic shifts and structural changes, one fact remains clear: 

Regional aviation is not disappearing - it is simply evolving. 

👉 Download the details of this analysis here. 

 

👉 For further insights and detailed analyses on regional aviation, visit my dedicated blog regarding regional aviation. 

 Photo Credit: MacelX42