
How the Pilot Shortage Might Lead to Increased Airline Mergers
Regional airport managers around the United States are watching American Airlines and Wisconsin Air with interest. The two airlines have begun a five-year partnership, in which the regional carrier Wisconsin Air will ferry American Airlines passengers to and from Chicago O’Hare International Airport. Against the backdrop of an ongoing pilot shortage and reductions in regional services, how might airline partnerships and mergers affect business at smaller airports?
Advance Aviation brings marketing capabilities to small and mid-sized airports. We can help you adjust existing marketing strategies to address consumer concerns.
Are More Airline Mergers on the Horizon?
The pilot shortage began in 2010 when training standards were changed. An increase was instituted in the pilot-flying hours required for licensing. After weathering a few years of disruptions due to the COVID-19 pandemic, travelers are again boarding airplanes for destinations near and far. But pilot layoffs and buyouts during the pandemic only worsened the existing pilot shortages. To bolster business, airline carriers are sizing up their options, and partnerships and mergers may be viewed as solutions.
For example, this partnership increases the size of the American Airlines fleet, because Air Wisconsin will operate under the American Eagle brand. American airline passengers in the Chicago O’Hare area will be offered service to and from regional airports. However, the partnership doesn’t increase the overall number of pilots, nor is a pay increase offered to Air Wisconsin/American Eagle pilots. So, it remains to be seen whether these in-demand pilots will stay with the company. A larger air fleet with fewer pilots will not add stability to this system of regional flight services.
Airline mergers are complicated, with Federal Aviation Administration (FAA) requiring a six-phase process. The Department of Justice and the Department of Transportation also have roles to play. If airlines are currently working toward mergers to maintain market viability and improve the pilot shortage, it will not be a matter of public knowledge for some time. However, if partnerships such as that between American Airlines and Wisconsin Air successfully influence business in regional markets, this may fuel interest in the more formal merger process.
How Might Airline Mergers Affect Regional Airports?
With some regional flight paths being discontinued due to the pilot shortage and other financial considerations, there may be concern about the future of your regional airport. Major carriers are competing with each other for both passengers and pilots. And these dynamic market conditions may provide a variety of results.
At Advance Aviation, we have contributed our marketing skills and expertise to many airport growth success stories. We understand the many factors that go into operating smaller airports, as well as their importance to local economies and business networks. Our marketing team is ready to analyze the specific situation of your regional airport and help develop effective marketing solutions.
How Can Marketing Strategies Address Airline Mergers?
Marketing campaigns attract and inform potential customers about airport services. Among the stakeholders at your regional airport, there is a unified desire to offer services to airline passengers. Whether you are offering travel solutions for the local community or inviting packages for tourists, utilizing marketing systems and strategies to reach target audiences helps keep everyone informed.
Advance Aviation has the knowledge, tools, and passion to help craft and disseminate stories that will help your customers understand the effect of any airline mergers or partnerships. And we can help build marketing campaigns that focus on area loyalties and the unique benefits of your regional airport.
Call on Aviation Experts for New Marketing Strategies
There are bound to be areas of turbulence as the air industry adjusts to economic, technological, and regulatory changes. Air flight has always been an exciting place to work. Let our enthusiasm for your industry and smaller airports energize your marketing campaigns. Let’s find out how the position and attributes of your airport can lend financial stability and expanded services at your small to mid-sized airport. Contact us today at Advance Aviation.
