Regional aviation is essential in many places, helping to connect rural, remote regions with larger population centres. I’ve done a lot of work in Australia to analyse how the regional aviation sector can overcome the significant levels of infrastructure deficits now evident across the country.

For regional airlines, the key problem is ageing aircraft and multiple, smaller regional airlines with marginally positive or net negative margins who do not generate sufficient cash flow to fund fleet replacement.

Ageing aircraft and cost explosion restrict the ability to maintain route frequencies and price elasticity – less capacity at peak demand times means fewer passengers and less revenue. Regional airline operating losses are compounded by ever increasing OpEx to maintain ageing aircraft, often monthly maintenance OpEx is now above CapEx for new aircraft options. Ageing regional aircraft spare parts supply chains are also drying up!

On the other side, regional airports are vital for economic development, freight, and dependable day-to-day connectivity in a way that’s very different to our main airports and their aeronautical and precinct volumes and strategies. Most regional airports are loss-making as well, many have significant infrastructure deficits

So what are regional aviation customers telling us, here is a pretty good summary:

When we assess current feedback on regional air services a clear picture emerges. These aren’t people complaining because a flight was delayed once. They’re business owners, executives, service providers, regional residents and frequent travellers describing how they’ve changed the way they work. Many have stopped booking regional flights unless they have no alternative. Some now drive. Others hold meetings online. Many charter and many people say they’ve lost productivity and had further cost increases because the opportunity for same day regional return travel is diminishing. The reasons are consistent: high fares, unreliable regional services and too many trips that fail to go according to plan. For businesses, the public sector, essential regional travellers, this isn’t just an airline issue. It’s time, productivity and confidence.

All of this can be restored.