The annual General Assembly of the European Regions Airline Association concluded in Berlin on Thursday with airlines calling for a greater focus on the importance of aviation to Europe’s regions, and the need to avoid overburdening the sector with regulatory costs—especially disproportionate and unfair passenger rights.

ERA president and KLM Cityhopper managing director Boet Kreiken said that the upcoming European transport strategy coming out of Brussels will include “a special chapter on regional aviation, so we’re making a lot of progress,” but he took a swipe at the continuing expense of airlines having to comply with EU Regulation 261/2004, under which they must pay compensation for delayed flights.

Kreiken also called for increased availability of financing to small airlines, in particular with the assistance of the European Investment Bank. “ERA has asked them to help finance directly regional airlines [where aircraft are used for] intra-European flights,” he said. “Only by bringing in new aircraft can we have a 50-percent reduction in CO₂ emissions.”

After noting that the ERA was welcoming four new member airlines—Jota Aviation, Air Greenland, Carpatair and the UK’s Flybe (thereby taking its airline membership to 54)—Kreiken yielded to ERA director general Simon McNamara.

McNamara said that ERA member airlines operate 629 aircraft (and 92 pure freighters) that make 960,000 flights a year between 1,200 destinations and carry a total of 45 million passengers on an average sector length of 71 minutes. He also stressed that they contribute €47 billion to Europe’s GDP. Jets compose 46 percent of the fleet, he added, while the capacity of all aircraft (jets and turboprops) averages 72 seats.

McNamara expressed optimism in the state of Europe’s economy. “All the evidence points to the economy improving across Europe,” he said. “Oil is sub $50 a barrel and economists think it will stay that way, which is a positive thing for our business.” However, he added a caveat. “We know in our industry that even when things are good they’re tough,” he reminded delegates. “At the CEO meeting this morning we talked about 54 percent of the market being with only five airlines, while the remaining 46 percent is shared among 136 other airlines. So we have a David and Goliath situation—and the big airlines are exercising their power.” Industry consolidation will likely continue, he predicted.

Like Kreiken, McNamara put passenger rights and compensation at the top of his agenda. “We’re in there fighting the cause; there is almost no escape from paying compensation when an aircraft has technical [issues],” he said. He said he looks forward to the new EU transport strategy, due for publication in December, adding that he expects it to highlight the importance of regional aviation and connectivity. “Let’s see what it says on access to hub airports and the building of new airports [too],” he said.

In the following panel discussions, Air Berlin CEO Stefan Pichler called for European governments to consider the effect of regulation on its airlines’ ability to drive economic growth. “Productivity gains have been neutralized by the negative impact of regulatory decisions, and this positions us as the underdogs to the international competition. It’s not a level playing field,” he said, citing increases in ATM costs of 40 percent over the past year, the German passenger tax and costs associated with the Emissions Trading Scheme (EU ETS). “Protectionism cannot be the answer,” he added. “The problem is not just fierce competition. It is the regulatory burden…while in the Middle East and Asia nations treat airlines as engines for growth.”