Competition and Consolidation: Is there room for all of Europe’s regionals?
The issue of competition was addressed at the most recent meeting of the European Regions Association, particularly regarding consolidation of the larger carriers.
“Our concern was not so much the big airlines, because we all know that they would be able to leverage the member states and the taxpayers to support what they need, which is fine but you have so many other airlines in the sector,” explained Henrik Mørch, director of DG COMP, “But there so many other airlines out there, and we are more concerned about what happens to them”.
READ: Regional airlines meet to discuss industry issues
“The key challenge is the ongoing consolidation of the big airlines and to what extent this will affect competition in the market, ” said Mørch. “This consolidation can impact your business in certain ways. It can impact on certain routes, or it can impact in terms of access to certain airports”.
The issue of access to government funds to maintain essential infrastructure was also raised.
“The other thing is the interplay between having competition in the market and on the other hand sustainability and that’s going to come in to play in the review of our state aid guidelines, which will ask the question; Is it still justified to support regional airports? Or should we buy into the argument that regional airports are a source of pollution, they are not needed for connectivity purposes and we should all just jump on a train?,” Mørch asked rhetorically.
- Read out full coverage of the ERA event in the next edition of Low Cost & Regional Airline Business magazine, out in April.