Commercial Regional Aviation Growth Opportunities

Increasing Dominance of Low-Cost Carriers Drives Transformational Growth in Regional Connectivity

Saturated air traffic demand in developed regions where aviation penetration is high creates the need for an adjacent market. Globally, the COVID-19 pandemic has forced governments and aviation stakeholders to rethink their strategies and mitigate risks associated with their dependence on international travel and tourism. Airports are considered strategic economic activity hubs and investment hotspots, offering new revenue streams through increased demand for regional connectivity. Establishing efficient regional connectivity could act as a feeder for existing airlines.

Having efficient and affordable network connectivity drives regional passenger traffic. Regular flights to key areas are appealing to passengers, such as major cities and emerging business hubs. Regional airports play a vital role in advancing and ensuring equal regional growth in a country, especially in areas with limited transportation access. Regional airports need to attract essential carriers to improve their network, increase air traffic, and broaden passenger access to more areas. Governments can incentivize small aviation participants to explore regional connectivity through viability gap funding and provide subsidies for the initial years and costs of operation of airports and airlines for sustainable regional development.

This research service provides an insightful overview of the global commercial regional aviation industry, highlighting crucial growth drivers and opportunities on which key stakeholders can capitalize.