The Aviation Crisis Is Now Regional

Even in an aviation market that has rewarded shorter routes, regional airlines are doing terribly.

This week, Cleveland-based Parker-Hannifin its acquisition of British aerospace and defense supplier Meggitt for £6.3 billion, equivalent to $7.2 billion. While it seemed like a fair price when the deal was announced last year, Wall Street analysts have since deferred their expectations for recovery at Meggitt by a couple of years. Shop visits by large jets have lagged behind due to the slow reopening of international routes. As George Zhao at Bernstein Research points out, though, it is the regional-plane rebound that has really disappointed.