The role of regional airports in Europe’s sustainable aviation future
The cover story in this issue sheds light on the transformative changes that have shaped Europe’s aviation industry in the past three decades, driven by liberalization measures. Regional airports, like the one in Lodz, Poland, have played a vital role in enabling the growth of connectivity, ensuring the integration of smaller cities and regions into the global transportation network.
Regional airports contribute 35% of direct air connectivity in Europe, up from 29% a decade ago. Despite operating with lower flight frequencies, these airports are crucial for local business growth, attracting inward investment, and providing essential services to remote communities. Tourism development in any region also heavily relies on the presence of an international gateway.
Underscoring the economic significance of air travel, an ACI Europe report published in April found that a 10% increase in direct air connectivity can result in a 0.5% increase in GDP per capita. However, the ongoing recovery has left many regional airports with depleted financial resources, compounding existing challenges related to their economic viability.
ACI Europe’s economic assessment of regional airports in 2019 revealed that airports typically require between 700,000 and 1 million passengers per year to achieve viability. Smaller airports, with limited opportunities to increase revenues and facing high fixed costs, struggle to break even.
New challenges in a post-pandemic world have also emerged. Network carriers are increasingly prioritizing routes that can deliver higher fares and yields, typically targeting larger markets with a more affluent population, rather than routes serving thinner regional markets.
Additionally, the push for decarbonization under the EU's Fit For 55 plan is anticipated to drive up airfares. Research by Oxera suggests that fares on routes to smaller regional airports, which predominantly attract LCC traffic, could see the most significant increases, leading to a projected 12% reduction in demand on these routes by 2050.
To address the challenges faced by regional airports, a comprehensive and coordinated approach at national and European levels is necessary. Transport policies should recognize the societal value of regional airports, promoting social and territorial cohesion.
Current European policies encouraging a modal shift from air to rail through restrictions or bans on short-haul flights may hinder sustainability investments and overlook the advancements expected with the arrival of electric and hybrid aircraft within the next decade. By providing adequate support, regional aviation can serve as a crucial testing ground for decarbonization, much before high-speed rail development reaches a viable scale.
Other measures should also be explored by policymakers, such as extending the scope of public service obligation (PSO) rules to third countries, which would support the connectivity of airports in peripheral regions. Simplifying the implementation of PSO rules would also enhance the strength of regional airports.
While Europe’s regional airports have shown resilience by recovering nearly 93% of their pre-pandemic passenger volumes, compared to 87% for larger airports and hubs, concerns about their long-term viability persist. It is imperative policymakers therefore address the specific challenges they face to ensure their continued contribution to Europe’s transportation network.
David Casey | Editor-in-Chiefdavid.casey@informa.com
