President of Jetcraft Commercial, Raphael Haddad
Jetcraft Commercial is a global company that buys, sells and brokers commercial aircraft, offering a range of services including market analysis, financing and aircraft management. Here the company’s President, Raphael Haddad, discusses the regional jet market.
This article was published in the February/March edition of LARA.
How have low-fare airlines reshaped the competitive landscape of regional airlines, and what impact has the shift to narrowbody aircraft had?
Low-cost carriers (LCCs) have redefined the competitive dynamics for regional airlines. By operating efficient, standardised fleets primarily consisting of narrowbody aircraft, they have been able to drive down costs and increase market reach on both domestic and short-haul routes. Use of larger narrowbodies, such as the Airbus A320 and Boeing 737, has enabled them to capitalise on economies of scale, but this evolution has come at a cost to connectivity. In regions where smaller jets and turboprops once played a major role, many rural routes are now underserved or eliminated altogether as LCCs focus on high-volume corridors. To stay relevant, smaller airlines can adapt by partnering with larger carriers or serving specific regional routes.
How is Jetcraft Commercial seeing demand for regional jets, and what are the opportunities and challenges?
In emerging markets, such as Africa, Southeast Asia and Latin America and the Middle East, smaller jets and turboprops are essential for connecting secondary and tertiary cities where passenger volumes might not justify larger aircraft. For example, Jetcraft Commercial has seen strong demand for the Dash 8-400, highlighted by our commitment to purchase 19 aircraft from Horizon Air last year.
Beyond the Dash 8-400, models such as the ATR 72-600 and -500, as well as the CRJ 700/900/1000 and E Jets, are popular choices in our inventory. Each of these aircraft types offers unique benefits, allowing airlines to optimise route planning and meet diverse regional requirements. While regulatory and infrastructure challenges do add complexity, regional aircraft remain a practical solution for boosting connectivity and economic growth.
What does the restart of Dash 8 production in 2028 mean for the industry?
De Havilland Canada’s potential 2028 Dash 8 production restart signals renewed optimism in the turboprop segment, with substantial demand for short-haul, high-frequency routes that this aircraft serves well. As one of the most successful regional aircraft to date, we know demand is still there. As we continue to see stable orders for other turboprop models still in production, like the ATR series, De Havilland’s decision to restart Dash 8 production aligns with our vision for this aircraft type. In a sector increasingly focused on sustainability, the turboprop’s reduced emissions make it an appealing choice for operators prioritising eco-friendly solutions.
Do you expect supply chain issues and labour shortages to improve, get worse or stay the same in 2025?
Should the global economy face a slowdown or recession, some relief could materialise as demand moderates, potentially freeing up inventory and helping balance out the supply chain. For regional aviation, this scenario could translate into lower ownership costs and eased labour pressures, particularly in roles such as maintenance manufacturing, and recruitment. In an economic downturn, there may also be a pivot towards fuel-efficient, right-sized regional aircraft as airlines optimise fleet costs to match adjusted demand.
What are the major challenges and opportunities facing regional airlines over the next five years?
Regional airlines are positioned for a complex yet opportunity-rich future. Workforce shortages, especially in pilot and mechanics roles, are likely to remain a critical bottleneck. Addressing these shortages will require strong recruitment and training initiatives to meet anticipated passenger demand. Airport capacity limitations add another layer of complexity, where regional airlines may struggle to secure slots, constraining route expansion and driving up costs.
However, these challenges are accompanied by strong opportunities. Rising environmental concerns may encourage a shift towards more fuel-efficient turboprops and crossover jets, allowing regional airlines to improve their sustainability credentials while serving underserved areas. With growing demand in regions like Africa, Southeast Asia and Eurasia, regional airlines that embrace new technologies and expand responsibly are well positioned to meet the challenges of this dynamic landscape.
