An Endangered Species? - Regional Aviation - Blog

Dieter J. F. Haselsteiner

Regional Aviation in Europe: an Endangered Species?

13 January 2024

According to the European Commission, along with ten other criteria, the competitiveness of regions is inexorably linked to their infrastructure. Indicators include the performance of the road transport sector, the rail transport sector, and the air transport sector in terms of accessible reachability through daily passenger flights. The quality of infrastructure is crucial for the efficient functioning of an economy and further growth. High-quality infrastructure ensures easy access to other regions and countries, contributes to better integration of peripheral and less developed regions, and facilitates the transportation of goods, people, and services. This has a significant impact on competitiveness as it enhances the efficiency of regional economies.

It must be noted that there is no clear conceptual definition for "Regional Airport." The Airports Council Europe (ACI Europe) classifies regional airports as airports with an annual passenger volume between 100,000 and 1 million passengers. The ADV (Arbeitsgemeinschaft deutscher Verkehrsflughäfen) and German aviation authorities apply the term "Regional Airport" to airports with scheduled public traffic, provided they do not belong to international airports. Based on data collected in the book "All you need to know about European Airports," regional airports are classified with an annual passenger traffic of up to 0.5 million passengers. In 2019, there were a total of 242 such airports in Europe (excluding Turkey and Russia), underscoring their importance in this field (representing 44% of all European airports). In contrast to the term "Regional Airport," the interpretation of "Regional Flight" is even more unclear: it mainly refers to smaller aircraft with a passenger capacity of fewer than 100 seats, regardless of the propulsion method (jet or turboprop). There is no official restriction on the flight distance; it depends on the flight schedule based on the regional aircraft used and the connected airports. Despite potentially longer flight distances, regional flights are almost exclusively considered to be flights of less than 1,000 km.

The primary actors in European regional aviation, namely airports and airlines, face differentiated challenges in this market segment. The majority of airlines, driven by predominantly economic factors, focus on achieving economies of scale through the use of large aircraft, leading to the lowest possible per-passenger costs. This situation contradicts the demands and requirements of European regional aviation. For example, in May 2021, Austrian Airlines operated its last scheduled flight with the Bombardier Dash 8-400, a turboprop aircraft ideal for short-haul flights. Simultaneously, this marked the departure of the last turboprop aircraft from the entire Lufthansa Group's fleet. With 28 units of the Lufthansa CityLine's Bombardier CRJ900, seating 84 passengers, this aircraft type has since served as the smallest aircraft in the Lufthansa Group's fleet, primarily deployed from the two hubs in Frankfurt and Munich until its phase-out in 2027. At Austrian Airlines, the Embraer 195 with 120 seats has become the smallest aircraft in the fleet. For sister company Swiss Int. Air Lines, it is the Embraer 190-E2 with 110 seats (provided and operated by Helvetic Airways). In contrast, Lufthansa Group subsidiary Brussels Airlines has had no regional jets since 2017, following the phasing out of its Avro RJ100.

This induced scarcity, resulting from the lack of availability and flexibility in suitable or smaller aircraft, has led to the partial cancellation of scheduled flight connections. Seasonal fluctuations in demand can no longer be compensated or addressed through the use of smaller aircraft. This recently led to the seasonal suspension of flight connections, as experienced painfully by Nuremberg Airport in the winter schedule of 2023/24. Both Austrian Airlines and Swiss Int. Air Lines made cuts and promptly terminated scheduled flight connections to their hubs in Vienna and Zurich, respectively. Routes that were previously served for years with turboprop aircraft and switched to larger aircraft due to fleet changes are not always met with economic success. This includes, for example, former Austrian Airlines routes from Linz to Düsseldorf and from Graz to Stuttgart, which were transferred to sister company Eurowings but failed due to the oversized aircraft (Airbus A319) and a less favorable product (frequency and timing).

Since the demise of the national carrier Adria Airways in 2019, the capital airport in Ljubljana, operated by Fraport, has been struggling to re-establish good intra-European connectivity. Slovenia is the smallest market within Europe in terms of annual handled passengers and is in immediate geographical proximity to alternative airports (Zagreb, Graz, Trieste) that directly compete with Ljubljana Airport. Even low-cost airlines still tend to avoid the country, making it challenging for existing airlines to regain ground and return to their former size, including the significance of being a regional hub. Regional aircraft would currently be the appropriate aircraft types to reconnect and develop previous markets. Talks between the Slovenian government and Austrian Airlines regarding the resumption of flights to Vienna have so far failed due to the unavailability of suitable (small) aircraft. This circumstance continues to underscore the necessity of the continued existence of regional flights using suitable regional aircraft.

Further prominent examples from Austria and Germany will be specifically examined. In 2020, the domestic flight connection between Vienna and Salzburg (operated by Austrian Airlines) was discontinued. One of the reasons was the newly established alternative direct train connection from Salzburg to Vienna Airport, with a travel time of under three hours. In Germany, Lufthansa ceased its intra-Bavarian route between Nuremberg and the Munich hub in 2021. Primarily used by transfer passengers, alternative modes of transportation such as buses or trains were only marginally embraced by passengers. This led to a shift of passengers to other (foreign) airlines, simultaneously utilizing their hubs and unintentionally transitioning passengers to road transport.

In addition to economic aspects, ecological arguments are gaining increasing importance in aviation in the current era of climate change, with tangible consequences. The previously mentioned flight connection between Nuremberg and Munich, for instance, repeatedly came under scrutiny. The phenomenon of 'flight shame' (Swedish 'flygskam') was brought to wider media attention by a Swedish former athlete in 2018. He refused to take flights to sports events and has been traveling by train throughout Europe ever since. The underlying idea is to alter one's behavior in favor of the climate, specifically reducing the generated CO2 emissions. Furthermore, in May 2023, France committed by law (Climate Protection Law France 2021) to ban domestic flight connections if a direct train connection with less than 150 minutes of travel time is available. Only three connections were affected, which had already been discontinued since 2020. At that time, the operating airline, Air France, received Corona subsidies in return. Currently, there is still a lack of "clean" aircraft with alternative propulsion technologies to effectively counteract this trend. Despite the publicly impactful debates on environmental protection in aviation, it is worth noting that, according to IATA, aviation contributed only about 2.7% to global greenhouse gas emissions in 2019, with the intra-European value at 0.52%.

There is little to no awareness that especially regional airports in Europe are exposed to a so-called 'clump risk' concerning their airline customer structure. Out of a total of 550 regularly served European airports by commercial charter and scheduled flights, 162 airports (29%) have only one airline as a customer, and 62 of them have only one airline combined with only one destination! These facts particularly apply to regional airports with an annual passenger volume of under 500,000, where 124 of them (76% and 23% of all European airports) are directly affected. Regardless of the perspective of regional aviation, it is also noteworthy that only 49% of all European airports (total 256) have an airline with a home base on-site. These numbers reflect the inflexibility (immobility) of airports, in contrast to airlines. The latter can adjust their route portfolios at any time and effectively leverage the European freedoms gained over the last two decades (keyword 'deregulation'). If such airports are not diversely structured, especially through real estate (especially commercial areas) in the landside area, as well as general aviation, cargo, and possibly military operations in the airside area, this can lead to economic instability in the medium and long term. Currently, among the German-speaking airports, Kassel, Erfurt, and Weeze are facing imminent threats of closure due to economic circumstances.

Low-cost airlines like Ryanair and Wizz Air have focused on point-to-point connections in their business model, leveraging the freedoms available in the European market. This has resulted in former connecting passengers, attracted by direct flight options, partially shifting away from regional aviation, contributing to the challenges faced by the sector in Europe. The regional aviation industry in Europe has struggled to counteract these trends, given the use of larger aircraft and the elimination of low-traffic direct connections.

All the factors and recent examples mentioned highlight the headwinds currently faced by European regional aviation. However, what are the unavoidable arguments for continuing regional aviation and promoting it both economically and ecologically, and what challenges and necessities are associated with this?

As mentioned in the introduction, infrastructure plays a significant role in the competitiveness of regions. Regional airports with their regional flights are undoubtedly a crucial part of domestic traffic, especially when it comes to connecting to respective capitals. Due to their geographical extent and topography, the following countries exhibit high capital city penetration, meaning a high number of domestic regional airports with a direct connection to the capital: Greece (33 airports or 87%), Spain (29 or 70%), Norway (28 or 61%), Sweden (27 or 79%), France (27 or 55%), and Italy (25 or 63%). In smaller markets like Latvia, Estonia, Hungary, Czech Republic, Serbia, and Iceland, this aspect plays a significantly lesser role since the respective capital airports dominate the local market with a share of over 90% of annual passenger traffic, and in some cases, domestic flights are not offered at all. Besides domestic traffic with the respective capitals as reference points, the importance of direct connections between secondary destinations within countries should not be overlooked.

The dimensions and technical equipment of runways, taxiways, aprons, terminals, and handling equipment serve as additional indicators for regional airports. A total of 175 airports (32%) have runways with a length of up to 1,999 meters, partially excluding larger commercial aircraft from regular operations. Remarkably, 12% or 64 airports have runways shorter than 1,000 meters, necessitating the use of Short Take-Off and Landing (STOL) aircraft. Especially in the context of island airports, the dimensions of airports, the necessary conditions for operating scheduled flights, as well as the associated and unchangeable geographical location and topographical conditions play a crucial role. It is not widely known that 25% (134) of all European airports are located on islands. In this regard, alternative modes of transport such as water are the only alternatives, usually associated with longer travel times, fewer connections, and increased exposure to weather-related disruptions, making regional aviation indispensable for islands to support the local population in various aspects: connectivity with the 'rest of the world,' supply of essential goods (especially medicines), facilitation of ethnic traffic (VFR – Visiting Friends and Relatives), and promotion of tourism. Public Service Obligation (PSO) programs financially support these scheduled flight connections and are publicly awarded through tenders to airlines to offer affordable ticket rates for passengers. There are approximately 200 such connections across Europe, with airlines like Wideroe (Norway), DAT (Denmark), Loganair (Scotland), and Sky Express (Greece) being noteworthy players in this market segment with substantial activities.

Regional airports are often part of the corporate structure of state owners or operators. This includes companies such as Avinor from Norway (42 airports), Finavia from Finland (18), Swedavia from Sweden (10), ISAVIA from Iceland (13), HCAA from Greece (24), and AENA from Spain (39), some of which operate all commercial airports in their respective countries. Due to the higher operating costs of regional airports, given their low passenger volume per flight, cross-subsidization is common and even explicitly encouraged in these operating companies. Norway is currently exploring the introduction of a ticket tax as a steering instrument to sustain the necessary infrastructure of regional airports in the long term.

Another means to strengthen the positioning of regional aviation is the establishment of airlines by regional airports themselves. This trend is still in its early stages but could gain significance in the future. Notably, the Austrian regional airline People's, part of the People's Air Group, consolidates both airport and airline operations within one company. At St. Gallen-Altenrhein Airport, in combination with People's Air, legal measures are taken to counteract the greatest risk factor for a regional airport – the potential (short-term) departure of airlines. Similar models in various forms are pursued by airports such as Bozen Airport with Sky Alps, Lübeck Airport with Lübeck Air, and Bern Airport with FlyBair. Increasing attention is focused on Sky Alps, which, apart from its home base in Bozen, has expanded its regional flight routes in Europe from Cuneo, Linz, and Verona. It exclusively operates Dash 8-400 turboprop regional aircraft with up to 76 seats.

Regional airports may offer special advantages for passengers due to their central location, while simultaneously presenting operational limitations for airlines regarding aircraft types and other factors. Noteworthy in this segment are airports like Stockholm Bromma, Cascais (Lisbon), Belfast City, Reykjavik, and London City. These airports are part of a diverse multi-airport system and, with their specific characteristics, can address certain needs of passengers and airlines in terms of regional aviation that major airports cannot meet.

To move closer to the goal of emission-free operating models for both airlines and airports, technological progress in environmentally friendly models will also be introduced in regional aviation. While electrically powered aircraft in regional aviation are still considered in the near future, aircraft with Sustainable Aviation Fuel (SAF) are already part of the present. SAF includes biofuels, synthetic fuels, and hydrogen. From 2025, the EU has mandated a mandatory blending of SAF (technically feasible) starting at 2%, gradually increasing. Developments such as the ES-30 by BAE Systems and Heart Aerospace are examples of future regional electric aircraft. Interested parties for this aircraft type, currently designed for a range of up to 800 km for 25 passengers, include the Norwegian regional airline Wideroe and the Scandinavian national airline SAS. In addition to the efforts of airlines themselves, for example, the Danish government announced in January 2022 the ambitious goal of eliminating fossil fuels from all domestic flights from 2023. Norway followed suit, announcing the intention to conduct all domestic flights electrically from 2024. The pioneering role of regional aviation from this perspective will emphasize its importance and elevate its significance.

It is evident that regional aviation remains indispensable, particularly in its feeder function to aviation hubs. Despite the EU's efforts to mandate direct rail connections for all airports with an annual passenger traffic exceeding six million, this goal is still far from being achieved. Currently, a total of 47 airports (62%) can meet this requirement, with only 77 airports (14%) across Europe having a direct rail connection. This low number is attributed, among other factors, to the island factor previously discussed. Furthermore, countries like Iceland or Malta lack any rail infrastructure. In general, it can be stated that rail transport cannot replace regional flights. This conclusion is drawn from the study on the discontinuation of flights between Salzburg and Vienna and may be used as a starting point to evaluate other regional flight operations. Various options and associated offerings should be maintained for different target groups. Prohibiting or discontinuing feeder flights does not lead to effective CO2 reduction, as CO2 emissions are capped under the EU Emissions Trading System throughout the EU. Any additional national savings may result in additional CO2 emissions elsewhere in the EU. Thus, there is a neutralizing effect on the reduction. Moreover, a shift in traffic to another hub may even lead to more emissions, compromising ecological benefits. Contrary to expectations, the rail is not necessarily a beneficiary of the discontinuation or prohibition of regional or short-haul flights, depending on the specific target group.

Night trains are also not considered a direct competitor to regional aviation in this context. On the one hand, their route lengths usually exceed those of regional flights, and on the other hand, they target a different audience in terms of travel time and pricing. Conversely, the combination of different modes of transportation (intermodal transport) becomes more attractive due to better connectivity of airports to road and rail transport, serving as an alternative for various target groups alongside regional flights on longer routes. Airlines have already entered into agreements with railways, allowing their passengers to use two different modes of transportation based on a single booking. The inclusion of Deutsche Bahn as a member of the Star Alliance underscores these efforts and the increased importance of this topic. In the event of the discontinuation of regional flights and the loss of passengers, airlines aim to continue reaching these passengers alternatively with other modes of transportation.

In summary, the European Regional Aviation is not under threat of extinction primarily due to regional competitiveness, existing airport infrastructure, the island factor, the PSO program, the feeder function, and the diverse target groups. On the contrary, it proves to be innovative (including the development of electric aircraft) and is not inherently replaceable or dispensable by other modes of transportation on many routes. In the future, there will be no way around turboprop aircraft, given the ecological advancement of the propulsion technologies used. Every travel demographic is encouraged to delve into the topic of sustainability in aviation and adjust their travel behavior accordingly. The implementation of additional airport-airline models in the context of regional aviation is desirable to ensure a certain self-made long-term economic stability of regional airports. Feeder flights, even in the context of short-haul flights, still play their role and are mostly utilized by transfer passengers in the Hub & Spoke concept of legacy carriers like Lufthansa, Air France, Austrian Airlines, and British Airways. One could take a step further by incorporating feeder flights (for example, for flight routes up to 500 km and an alternative transportation travel time of under 5 hours) into booking systems in a way that they can only be booked as part of a travel chain in the form of feeder flights, making the booking of a feeder flight as a standalone point-to-point connection impossible.

Kindly let me know your opinion about this topic.

This article was primarily based on his books All you need to know about European Airports (2023), European Airports in Focus (2024), and Remote, small but essential (2021). Additional sources are listed below:

· ACI Europe (2023): Passenger traffic inching towards full recovery in October

· ADV (2023): Regionalflughafen

· Aerotelegraph (2017): Auch Brussels Airlines sagt der Avro Adieu

· Aerotelegraph (2023): Austrian Airlines spricht mit Slowenien über Ljubljana-Flüge

· Aerotelegraph (2023): Austrian Airlines und Swiss streichen Nürnberg definitiv aus Streckennetz

· Airliners.de (2023): Verbot kurzer Inlandsflüge tritt in Frankreich offiziell in Kraft

· Austrian Airlines (2023): Embraer 195, online:

· Aviation.direct (2023): Eurowings stellt Graz-Stuttgart ein

· Aviation.direct (2023): Neue Steuer: Norwegen will kleine Airports querfinanzieren

· Deutsch-Schwedische Handelskammer (2019): Flugscham und die Folgen: Bleibt Schweden künftig am Boden?

· Europäische Kommission: Regional Competitiveness Index2022