Traffic at European regionals grew 8.5 percent in the first quarter, according to the European Regions Airline Association (ERA), a four-point rise from the 4.8 percent increase in the first quarter 2005. Scheduled passenger kilometers (RPKs) almost matched passenger growth reaching 8.4 percent, down from 9.7 percent in the year-ago period. Seat kilometers grew slightly by 7.3 percent as airlines kept capacity near 2005 levels. Passenger load factor continued to grow with a high of 60.5 percent recorded for March, although the average for the quarter rose by only .9 points to 57.9 percent. U.S. regional load factors are in the high 70s to mid-80s. Even so, that is the highest load factor ever recorded for the first quarter. Hours and landings grew at growth rates of 2.4 percent and 1.8 percent, respectively.

ERA's membership experienced a small decline for on-time departure, with 83 percent of flights departing on time compared to 85 percent during the first quarter of 2005. However, 97.4 percent of flights were operated when the industry had a 2.6 percent cancellation rate. In the first quarter 2005, members had a 96.8 percent completion rate.

Airport congestion and monopoly pricing at airports are two key issues facing European regionals, asserted ERA President Antonis Simigdalas, in calling for regulatory reform.

"These are important issues for Europe, for its airports and for airlines," said Simigdalas, speaking at the Airports Council International (ACI) Europe General Assembly in Athens. "Airlines and airports are links on the same chain. A chain is only as strong as its weakest link. The question here is not if airports or airlines are stronger. The real question is how strong can we be together? And how much regulation is needed for that?"

ERA warned that passengers and destinations would be the ultimate losers if secondary slot trading is allowed. The European Commission is considering amending the existing slot allocation regulation but has not conducted a full-impact assessment.

Speaking at the European Union Airport Coordinators Association (EUACA), Andrew Clarke, ERA director of air transport policy, said putting a price on slots risks that they will be viewed as a more valuable asset than the service provided to a particular destination or region. It also risks service to some regions if regionals are unable to afford the price of a slot.

"Changes in the slot allocation rules will not create more capacity but will cause changes to the markets served from congested airports," he said. "The economic and social viability of Europe's regions depends on good transport links to major centers for point-to-point and connecting passengers and freight. Only air transport can provide these links for the majority of Europe's regions."

He pointed out the proposed change does nothing to address the root problem -- the lack of capacity.