Latest news with #regionalairlines
Travel Daily News
2 days ago
- Business
- Travel Daily News
ERA: Revised passenger rights ignore regional airline needs
ERA warns revised EU261 fails regional airlines, risking essential connectivity with stricter rules and insufficient exemptions for PSO and short-haul operators. The European Regions Airline Association (ERA) raises concern following the Transport, Telecommunications and Energy Council's agreement on its position for revising the Passenger Rights Regulation, EU261. While the update includes some long-overdue improvements, such as the introduction of a binding, non-exhaustive list of extraordinary circumstances, and brings much-needed legal clarity, it ultimately fails to reflect the specific realities of regional air transport and risks weakening Europe's essential air connectivity. Raising the delay threshold from three to five hours for short-haul flights, as originally proposed, was particularly vital for regional carriers. These airlines typically operate smaller aircraft on tighter schedules, without the flexibility of standby planes or reserve crews. The Council's limited increase to just four hours is a step in the right direction but ultimately falls short. Worse still, no exemptions have been granted for PSO (Public Service Obligation) flights. These routes are often the only link for remote or underserved communities and operate on extremely tight margins. Increasing compensation from 250 euros to 300 euros, while denying PSO flights any flexibility, places an excessive burden on the carriers delivering essential services. Other new obligations, including automatic reimbursement, the right to rebook after three hours on other carriers or transport modes, and potential self-rerouting of up to 400% of ticket value, further exacerbate the economic pressure on regional operators already stretched to maintain services. 'This was a chance to strike a fair balance between protecting passengers and safeguarding the regional air services that so many rely on,' said Montserrat Barriga, Director General, ERA. 'Yet regional airlines have been overlooked. The revision in its current form risks damaging the financial sustainability of regional operations and, by extension, the connectivity of Europe's regions.' As the European Parliament now examines the text, ERA urges policymakers to reconsider. A one-size-fits-all approach fails Europe's most vulnerable air routes. A fair and future-proof regulatory framework must support the economic realities of regional aviation and protect the connectivity that keeps communities and economies across Europe connected.
RNZ News
28-05-2025
- Business
- RNZ News
The headwinds facing regional airlines
Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. Photo: Sharon Brettkelly Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. "Passenger numbers are through the roof," says Sounds Air boss Andrew Crawford. But it has had to "kill off" Taupō and Westport routes and sell an aircraft, and the company is still losing money. "I wouldn't know one airline that isn't," he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. "This is a critical issue for New Zealand," says Crawford. "Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare." Photo: Sounds Air Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland - Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. "You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike." He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. "He's had some real challenges in his life and this seems to be trumping a lot of them at the moment," he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. "For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears," Crawford says. His airline is "hanging off shareholders' mortgages" but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington - Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. "They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company," he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a "possibility". "There's not too many second tier airlines in New Zealand," he says. Duane Emeny, chief operating officer of Air Chathams. Photo: Sharon Brettkelly Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. "To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back," he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. "We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. "The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector." Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Surf Air Mobility Announces $1 Million Purchase of Company Stock by Co-Founder
Co-Founder and Member of the Board, Sudhin Shahani, purchased over 400,000 shares of Surf Air Mobility Inc. Common stock at market price May 28, 2025 — Surf Air Mobility Inc. (NYSE:SRFM) ('the Company', 'Surf Air Mobility'), a leading regional air mobility platform, announced that Co-Founder and Member of the Board, Sudhin Shahani, purchased 408,163 shares of the Company's common stock at the market price, for a purchase price of approximately $1 million, directly from the Company in a private transaction. Mr. Shahani said: 'Our Transformation Plan is already having an early impact. We've improved operations and strengthened the core business. I'm confident in our experienced leadership team's continued execution capabilities.' The Company remains focused on the Optimization Phase of the Transformation Plan with key initiatives to optimize airline operations, recalibrate the On Demand business, and drive efficiencies from SurfOS. About Surf Air Mobility Surf Air Mobility is a Los Angeles-based regional air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures. It is also the largest U.S. passenger operator of Cessna Caravans. In addition to its airline operations and On Demand charter services, Surf Air Mobility is developing an AI-powered software platform for the Regional Air Mobility industry. The company is also working to commercialize electrified aircraft and developing proprietary powertrain technology for the Cessna Caravan. Surf Air Mobility plans to offer its software and electrification solutions to the Regional Air Mobility industry to improve safety, efficiency, and profitability. Forward-Looking Statements This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Surf Air's profitability and future financial results and its ability to achieve its business objectives. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company and reflect the Company's current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air's ability to anticipate the future needs of the air mobility market; Surf Air's future ability to pay contractual obligations and liquidity will depend on operating performance, cash flow and ability to secure adequate financing; the dependence on third-party partners and suppliers for the components and collaboration in Surf Air's development of its advanced air mobility software platform, and any interruptions, disagreements or delays with those partners and suppliers; the inability to execute business objectives and growth strategies successfully or sustain Surf Air's growth; the inability of Surf Air's customers to pay for Surf Air's services; the inability of Surf Air to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against Surf Air, the risks associated with Surf Air's obligations to comply with applicable laws, government regulations and rules and standards of the New York Stock Exchange; and general economic conditions. These and other risks are discussed in detail in the periodic reports that the Company files with the SEC, and investors are urged to review those periodic reports and the Company's other filings with the SEC, which are accessible on the SEC's website at before making an investment decision. The Company assumes no obligation to update its forward-looking statements except as required by law. Contacts: Surf Air Mobility Media Contacts Press: press@ Investors: investors@
Travel Daily News
23-05-2025
- Business
- Travel Daily News
ERA calls for balanced EU261 revision
ERA urges EU261 revision to support regional airlines, calling for flexible rules on compensation, delay thresholds, re-routing, and extraordinary circumstances. The European Regions Airline Association (ERA) continues to call for a proportionate and flexible approach in the long-awaited revision of the Passenger Rights Regulation, EU261. While the regulation is intended to protect passengers and improve the reliability of air travel, its current form places an unsustainable burden on regional airlines that deliver essential connectivity across Europe. ERA is therefore calling to ensure that the revision of the regulation does not hinder European regional connectivity. The revised regulation should include the following elements: Compensation levels must reflect regional realities: Raising compensation would disproportionately impact carriers operating only short-haul routes, many of which are smaller airlines, in particular but not limited to PSO routes, where low fares leave no margin for added costs. These vital services must remain economically viable. Extended delay thresholds from 3 to 5 hours for short-haul flights: Many regional airlines operate essential services to remote or insular areas, often without immediate access to maintenance facilities. Extending compensation thresholds reflects these operational realities and helps carriers manage multiple daily rotations safely. Airlines must be able to prioritise the safety tasks without the pressure of being penalised by inflexible rules. An increase of the threshold will also significantly reduce the cancellation of flights and hence will ultimately benefit the consumer. Limited conditions for re-routing: Regional carriers must retain the operational flexibility to manage disruption in line with their available resources. Overly permissive re-routing options – such as immediate rebooking on any available carrier or alternative transport mode – would place an unsustainable burden on smaller airlines. A binding, non-exhaustive list of extraordinary circumstances: Greater legal clarity is essential for both passengers and carriers. A detailed and flexible list will reduce administrative costs and litigation while ensuring fairness. Jesper Rungholm, ERA President and CEO of Danish carrier DAT, commented: 'The majority of regional operations connect remote islands and regions of Europe to the mainland, providing vital connectivity. These services can be challenging – weather, maintenance, crew availability – with almost every aspect of airline operations at its most extreme. Passengers are accustomed to delays and disruptions across all modes of transport, yet it is only airlines that face extreme compensation payments, along with hotel and meal costs. With regional fares kept deliberately low, we often see compensation amounts that are four to five times the ticket price. 'Options for cost recovery are extremely limited, making this an excessive and unsustainable burden. Nevertheless, our commitment to serving passengers remains strong. The revision of EU261 should not put the economic viability of these essential routes at risk and threatens regional connectivity.' Montserrat Barriga, Director General, ERA added: 'If the financial burden on regional airlines continues to rise unchecked, the consequence will be the closure of routes that many communities depend on and make regional airlines less competitive hence reducing choice and increasing prices for passengers. Regulation must strike a balance between protecting passengers and ensuring that the airlines serving remote and underserved regions can continue to operate sustainably. 'ERA urges policymakers to move away from a rigid, one-size-fits-all model and towards a collaborative, realistic and passenger-focused framework. Only then can the regulation continue to protect travellers while safeguarding the regional air services that are Europe's lifeline.'
