newstodate.aero
Apr 30, 2013 (newstodate): News of projects to set up new airlines is normally considered encouraging and indications of industrial entrepreneurship.
Statistics are, however, depressing when it comes to the establishing of new regional carriers, as proved by a recent study by PROLOGIS and ch-aviation that have scrutinized Europe's regional airline market.
The study established that the mortality rate of all regional carriers from 2008 till today is 33 percent!
And even more alarmingly: 44 new airlines were founded since 2008, and 22 of them have already vanished, which is a mortality rate for new ventures at 50 percent.
The scope of the study included all EU member states plus Albania, Bosnia-Herzegovina, Croatia, the Faroe Islands, Iceland, Kosovo, Macedonia, Montenegro, Norway, Serbia and Switzerland.
According to the study, new regional carriers set up in areas with little or no direct competition have a greater chance of survival, while low yields due to competition from low-cost carriers is the serial killer to others.
Statistics are, however, depressing when it comes to the establishing of new regional carriers, as proved by a recent study by PROLOGIS and ch-aviation that have scrutinized Europe's regional airline market.
The study established that the mortality rate of all regional carriers from 2008 till today is 33 percent!
And even more alarmingly: 44 new airlines were founded since 2008, and 22 of them have already vanished, which is a mortality rate for new ventures at 50 percent.
The scope of the study included all EU member states plus Albania, Bosnia-Herzegovina, Croatia, the Faroe Islands, Iceland, Kosovo, Macedonia, Montenegro, Norway, Serbia and Switzerland.
According to the study, new regional carriers set up in areas with little or no direct competition have a greater chance of survival, while low yields due to competition from low-cost carriers is the serial killer to others.