SOURCE: MarketResearch.com

MarketResearch.com

November 29, 2012 04:08 ET

Market Research Report -- Regional Airline Industry Facing Challenges in Road to Recovery

ROCKVILLE, MD--(Marketwire - Nov 29, 2012) - MarketResearch.com has announced the addition of the market research report "Civil Aircraft : The Market for Regional Transport Aircraft," to their collection.

The regional aircraft market is continuing to recover after suffering severely during the global economic downturn of 2008-2009. Regional aircraft sales showed impressive growth in 2011. Nevertheless, the market is not experiencing anything close to the level of recovery that the large airliner market is experiencing.

The prospects for continuing growth in the regional aircraft market, and the limitations to such growth, are examined in this study. Overall, regional aircraft manufacturers do have cause to be cautiously optimistic. This is particularly true in the turboprop airliner sector, though the regional jet segment is also displaying some positive trends.

In the near term, this optimism is fueled by increasing demand for regional aircraft in emerging markets. While North America and Europe have historically been the geographic engines of growth in the regional airliner market, demand in these two regions is currently hampered by sluggish economic conditions and market saturation.

Even in the near term, though, North America and Europe will continue to be large and significant markets for regional airliners. Other regions, however, will grow in size and relative importance to the industry. These will include the Asia/Pacific area, Latin America, and the Middle East. In 15 or 20 years, the Asia/Pacific region could well overtake Europe as the second largest market for regional aircraft, presuming that progress is made in developing secondary routes within that region.

In the meantime, the regional airline industry is facing serious challenges. Regional carriers face nearly all of the same problems that major airlines do. In addition, regionals are saddled with additional difficulties unique to their place within the structure of the airline industry.

For example, many regionals are subject to scope clause restrictions on the type of aircraft that they can fly, resulting in inefficient fleets ill-equipped for maximizing profitability and generating new business opportunities. A number of regionals also operate under fixed-fee-per-departure contracts that have fee escalation clauses that do not keep pace with rising costs.

Arguably, then, the challenges facing regional airlines may be more difficult and complex than those facing major carriers. Plus, in the years ahead, opportunities for regionals to achieve substantial growth will be somewhat limited, especially in the saturated North American and European markets.

Those manufacturers that best respond to the changing needs of the regional airline industry will have the most success in the regional aircraft market.

For more information, visit http://www.marketresearch.com/land/product.asp?productid=7233115&progid=84980

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