Major and Regional Airlines

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Major and Regional Airlines � PAGE �1�

Major and Regional Airlines

Chad Cabeen

Mark Barsnick

Nicholas Bell

Anthony Brancato

Embry Riddle-Aeronautical University

Aviation Law ASCI 405


Passengers are always looking for cheaper fares. In an effort to provide those fares major airlines have relied heavily on regional airlines. Regional airlines now provide for over fifty percent of U.S. domestic travel. Over the past several years travel expenses for all airlines have risen dramatically due, in part, to fuel cost. These rising costs have brought the regional airlines to the mercy of the major airlines. Because of the lack of revenue for training, regional airline safety has become questionable in recent years because of accidents caused by lack of experience, proper training and pilot fatigue. While regional airlines offer lower cost of flying to passengers, there can be a significant cost in risking the safety of the passengers. The FAA and the legislature have begun taking steps to focus on making these flights safer.

A pressing question and concern is whether major airlines should be liable for a completely separate regional airline they contract flights with.

Major and Regional Airlines

Today, regional jets carry one in four domestic passengers and account for more than half of all U.S. departures. A regional carrier serves nearly every U.S. airport with scheduled commercial airline services, and provides the only means of scheduled air transportation to 442 communities or approximately 70% of all U.S. airports. Matching the supply of seats more closely to actual demand often favors regional aircraft. The regional airline business model also accounts for some of the success of these smaller airlines.

Relationship Between Major and Regional Airlines

Some regional airlines are wholly owned subsidiaries of network airlines while others are independent companies flying for multiple network airlines. Most regional jet...