CARIBAVIA 2025: Silver Airways’ failure ends conventional regional model By Kathryn B. Creedy.

The long-awaited death of Silver Airways in Florida, a prolific name serving the Caribbean, closely follows the spinning out of Air Wisconsin as an American Eagle, calling into question the survivability of the US regional airline sector for both independents like Silver and code-share airlines like Air Wisconsin.

Having covered this sector since the early 80s I foresee only two survivors amongst the hundreds that populated the industry in the 1980s - SkyWest and Republic - which remain the only regionals not owned by their major carriers. Yet, their partners have stakes in the airlines. But here’s a question. Can you really call what these airlines do ‘regional’? I suggest not, based solely on SkyWest’s extensive route map.

It’s 2,400 daily flights connect passengers to 267 destinations across North America. It has 20 domiciles and a fleet of nearly 500 aircraft. Courtesy of SkyWest.

Independent Regional Model Ends

The fate of Silver Airways followed several similar failures of predecessor airlines such as Gulfstream Airways. So, it is no surprise that Silver finally went west. A few years ago, when ATR announced Silver was taking ATRs, I had my doubts and wondered if this was an attempt to prop up an otherwise failing carrier - or to merely reintroduce turboprops back to the US. I wonder no more. After all, weren’t the regional airlines heavily subsidized by these manufacturers in the 1980s?

The ATR42s and 72s have been sold to Wexford Capital so hopefully they’ll see new service, but a resurrection of the turboprop in America - something ATR has long struggled to achieve is with such one-off deals as Silver - the recent acquisition of ATRs for JSX’s semi-private airline operations notwithstanding. That has certainly got the industry talking.

I believe in what JSX is trying to do and have always believed in the economy of the turboprop. Long ago I concluded mainline airlines’ preference for jets was flawed. I just observe the world’s wealthiest - some with their own private jets - embracing Cessna Caravans, Tecnam 2012 Travellers, de Havilland Twin Otters, Pilatus PC-12s, to access some of the most expensive real estate on the planet.

It is important to reflect that ATR - along with Saab, BAe, Embraer, de Havilland - built the post-deregulation regional airline industry responding to deregulation with a vast number of aircraft options designed for short-haul, community air service. Today, while many of these venerable aircraft remain in use, they are extinct in the US outside of regional cargo carrier operations. Only two manufacturers remain - ATR and Embraer. Only one is in commercial service in the US - Embraer.

Of the hundreds of carriers serving post-deregulation America, only a handful are left, and they are self-described as seat factories for the major carriers; their demise hurried along by nonsensical rules promulgated by the Air Line Pilots Association which charged the smaller airlines with “stealing” their jobs. It launched a successful effort, wielding “safety” like a cudgel in its 30-year destruction of a once-powerful industry. ALPA put an end to the perennial regeneration of small community air service as the airline industry has evolved from its earliest days. Mainlines gave way to local service carriers as they grew, thanks to the service obligations set down by the government. After deregulation was the last of this natural evolution as local service carriers gave way to commuter/regional airlines who took over service to small communities. But rising regulatory costs imposed by ALPA’s work with the FAA, and shrinking code-share revenue meant the abandonment of over 400 routes, that, in the 1980s were often powerful money makers for their airlines.

Opportunities Abound

Airlines like Silver insisted there was a market for independent service and at least one savvy airline entrepreneur from the post-deregulation era convinced me there was plenty of opportunity to resurrect small community air service in the guise of intra-regional service, especially for geographically large states like Texas, Florida and California and abandoned regions such as New England and the Upper Midwest. He was waiting for the right airplane. The advent of the Tecnam P2012 and the Textron Aviation SkyCourier, came too late for them. My prediction is we will see props return to US commercial airlines it will be in a decade in the guise of regional air mobility, although I have my doubts.

Changing Technology, Passenger Preferences

What I think put paid to small-community air service, beyond the rising costs of being a regional airline and the total takeover of the industry by majors is the fact that when a point was abandoned, passengers made their way to other airports. Even when they had a healthy local airport such as mine in Melbourne, FL, they drove to hubs because they offered more choices in service and fares. Instead of just going to one or two hubs as they do in Melbourne – Charlotte and Atlanta - they have more service options, but lower fares at Orlando.

Couple that with the advent of technology that has replaced many trips, as argued by Boyd International Group CEO Mike Boyd, who has watched the phenomenon as far back as faxes before it morphed into email and Zoom. Still, the rise of business aviation, especially during the pandemic, proved face-to-face - especially to ink the final deal - was still important.

“With Silver, we are witnessing the swan song of a specific air transportation modality that long ago became obsolete – independent regional airlines,” wrote Boyd when Silver announced its abandonment of the Orlando market earlier this year. “These were the carriers that had their own market turf, sold their own tickets, collected their own revenues, had their own fleets of turboprops (mostly), and operated under their own market identities.

“Let’s cut to the chase here,” he continued. Silver has been trying to fill a need that no longer exists in the volumes that can support the costs.

“The reason is the evolution of communication channels. Intra-regional commuter/regional airlines once had a role,” continued Boyd. “Today, the combination of electronic communications and raw cost economics are such that the regional airline industry has atrophied. It is obsolete to the needs of the economy,” and the onerous experience of going by air created by the major carriers.

What of ATR’s latest deal with JSX? JSX is a different breed serving point to point at premium costs as a public charter. It uses the Embraer 135 and 145, typically configured with 30 seats, and will expand its fleet later this year with ATR 42-600 turboprop aircraft configured with 30 premium seats. This expansion marks ATR's entry into the US public charter market and will allow JSX to offer service from private terminals and underserved airports. ATR are justified in celebrating the order.

I really believe in JSX and the public charter model but powerful forces are conspiring against it - American and Southwest Airlines and their pilot unions are attacking it’s right to fly public charters saying it skirts the single-level-of-safety rule, despite the fact CEO Alex Wilcox has set a high Part 121 standard for its operations. The airlines and unions simply want to get rid of the competition and are using the Department of Transportation and the Federal Aviation Administration to do their dirty work. The question is whether the feds will aid and abet the over domineering airline community.

BlueSky Business Aviation News | 7th August 2025 | Issue #807