Buddy System in the Sky

Feeder airlines supply big carriers with small-town passengers

When the airline industry was deregulated in 1978, American, Delta, United and other major carriers abandoned many unprofitable routes serving smaller cities. Into the void flew a fleet of plucky commuter lines. Relying largely on twin-engine turboprops, the regional airlines, including Atlantic Southeast, Air Wisconsin and Ransome, began turning profits in markets where bigger airlines and their larger planes had lost money.

Now regional and major lines are getting together in new ventures that fly under names like American Eagle and Republic Express. Last week an agreement creating Eastern Air Midwest Express went into effect. Air Midwest ticket holders now board...

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