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US regionals prepare for market share scramble

Consolidation and continued network pruning at US major carriers is likely to spur fierce competition during the next five years as all their regional partners scurry to gain existing market share as organic growth has evaporated.

Mesa chief executive Jonathan Ornstein recently told employees the US regional industry “is looking to reshape itself”, as evidenced by Republic Airways Holdings recently-announced plans to purchase Frontier and Midwest Airlines.

Ornstein warns that “going forward the trouble our partners are dealing with will impact us over time”.

Recognizing that further mainline consolidation in the US is likely to occur, Republic chief executive officer Bryan Bedford recently said revenue streams for regional carriers serving those carriers are likely to shrink, creating robust competition for contracts that expire within during the next five years.

Management at SkyWest Inc has already started preparing for the competition to steal mark

This entry was posted on Friday, July 3rd, 2009 at 5:26 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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