Last month’s Chapter 11 bankruptcy filing by Pinnacle Airlines Corp., the Memphis-based parent of regionals Pinnacle Airlines, Colgan Air and Mesaba Aviation, brought into sharp focus the challenges faced by the regional airline industry in the US. The capacity-purchase model that has become standard is threatened by, among other things, the consolidation push of US mainline carriers. And after several years of controlling more than half of the US domestic air passenger market, US ...

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