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120-661: Envoy Air is an American regional airline headquartered in Irving, Texas in the Dallas–Fort Worth metroplex . It is a wholly owned subsidiary of the American Airlines Group and it is paid by fellow group member American Airlines to staff, operate and maintain aircraft used on American Eagle flights that are scheduled, marketed and sold by American Airlines. Envoy Air operates a fleet consisting of exclusively Embraer regional jet aircraft. The company has

240-514: A codesharing deal with Trans World Airlines (TWA), allowing TWA to sell American Eagle Airlines flights feeding into Los Angeles and later New York's JFK Airports. These services were branded by TWA as Trans World Connection flights. These American Eagle Airlines/Trans World agreements were forged well in advance of AMR's acquisition of TWA in 2001. During 2007, AMR began studying ways to spin American Eagle Airlines off into

360-496: A " perfect storm " that triggered the Great Recession , which lasted from late 2007 to mid-2009. The financial crisis began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate , as well as a vast web of derivatives linked to those MBS, collapsed in value . Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and

480-662: A country (such as the US) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports. All of this created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend either because they had very high personal savings rates (as high as 40% in China) or because of high oil prices. Ben Bernanke referred to this as

600-424: A form of a virtual airline , with the regional airline paid to staff, operate and maintain aircraft used on flights that are scheduled, marketed and sold by a partner mainline airline. This practice allows the mainline carrier to use outsourced labor at smaller stations, to reduce costs. In 2011, 61% of all advertised flights for American, Delta, United and US Airways were operated by their regional brands. This figure

720-450: A further collapse, encourage lending, restore faith in the integral commercial paper markets, avoid the risk of a deflationary spiral , and provide banks with enough funds to allow customers to make withdrawals. In effect, the central banks went from being the " lender of last resort " to the "lender of only resort" for a significant portion of the economy. In some cases the Fed was considered

840-495: A global economic shock, resulting in several bank failures . Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures . Several businesses failed. From its peak in the second quarter of 2007 at $ 61.4 trillion, household wealth in the United States fell $ 11 trillion, to $ 50.4 trillion by

960-483: A housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis. Additional downward pressure on interest rates was created by rising U.S. current account deficit, which peaked along with the housing bubble in 2006. Federal Reserve chairman Ben Bernanke explained how trade deficits required

1080-531: A larger carrier, similar to their American counterparts. Some of these airlines and brands include: The trend of branding regional airlines to match the mainline airlines, has led to just three major sub-brands in the United States: American Eagle , Delta Connection and United Express . They are the post-deregulation survivors of the multiple bankruptcies and mergers of the major, legacy, mainline airlines. These regional brands are

1200-458: A mainline or flagship airline's aircraft, while in actuality they are far from it. Sub-branding is pretty consistent throughout the airline industry of the United States, with all the regional airlines, mainline airlines, and the regional airline holding companies, as well as the mainline airlines holding companies participating. On Feb 12th, 2010, a year after the crash of Colgan flight 3407 , Frontline premiered its WGA Award-winning exposé on

1320-422: A new era of major airlines expanding to operate networks with large footprints. The development of long-range aircraft operated by flag carriers like British Overseas Airways Corporation and Trans-Canada Airlines further normalized the capability of "far and wide" air travel among the traveling public. "Regional airline" is a flexible term whose meaning has changed substantially over time. What it means today

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1440-527: A new vision for regional mobility, based on services built out of small general aviation aircraft and VLJs (very light jets) with advanced automation. This vision failed to materialize due to its primary focus on rural mobility and a lack of clear and viable business case. With the introduction of air taxi services and very light jets , city pair links to smaller communities lacking regional connections could become more common. This opportunities could become commercially viable with advanced air mobility and

1560-821: A range of measures intended to preserve existing jobs and create new ones. Combined, the initiatives, coupled with actions taken in other countries, ended the worst of the Great Recession by mid-2009. Assessments of the crisis's impact in the U.S. vary, but suggest that some 8.7 million jobs were lost, causing unemployment to rise from 5 percent in 2007 to a high of 10 percent in October 2009. The percentage of citizens living in poverty rose from 12.5 percent in 2007 to 15.1 percent in 2010. The Dow Jones Industrial Average fell by 53 percent between October 2007 and March 2009, and some estimates suggest that one in four households lost 75 percent or more of their net worth . In 2010,

1680-545: A really bad economy. In other words, the borrowers did not cause the loans to go bad-it was the economy. Between 1998 and 2006, the price of the typical American house increased by 124%. During the 1980s and 1990s, the national median home price ranged from 2.9 to 3.1 times median household income. By contrast, this ratio increased to 4.0 in 2004, and 4.6 in 2006. This housing bubble resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by

1800-539: A separate company, including, but not limited to, the possibility of selling the company to stockholders or an unaffiliated third party. In 2008, AMR said any plans had been put on hold until the airline industry stabilized after the 2007–2008 financial crisis . In July 2011, AMR announced the spin-off of American Eagle Airlines, but those plans were again shelved when AMR filed for bankruptcy in November 2011. On 14 January 2014, American Airlines Group officially announced

1920-404: A significant increase in subprime lending . Subprime had not become less risky; Wall Street just accepted this higher risk. Due to competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers. In the view of some analysts,

2040-489: A single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid

2160-408: A strong entrepreneurial sector of independents. They are based on business models ranging from the traditional full service airline to low cost carriers . Innovations include one where the passenger is required to join a membership club before being allowed to fly. Some examples of European regional airlines include: India has many regional carriers operating currently. Some of these operate under

2280-551: A subsequent international banking crisis . The prerequisites for the crisis were complex. During the 1990s, the U.S. Congress had passed legislation intended to expand affordable housing through looser financing. In 1999, parts of the Glass–Steagall legislation (passed in 1933) were repealed , permitting institutions to mix low-risk operations, such as commercial banking and insurance , with higher-risk operations such as investment banking and proprietary trading . As

2400-564: A team of more than 18,000 employees, operating more than 1,000 daily flights to over 150 destinations in the United States , Canada , Mexico , Caribbean and South America . Envoy was formerly known as American Eagle Airlines and was formed when American's parent company merged several airlines owned by the group and operating regional flights. The name was changed to avoid confusion with other regional carriers that operate on behalf of American Eagle. The name "American Eagle Airlines"

2520-627: Is a reincarnation of the now deprecated Envoy Class of seating on US Airways aircraft. Envoy Air's headquarters are in Irving, Texas , in two buildings located north of the northeast portion of DFW Airport. American Eagle was previously headquartered at the American Airlines headquarters in Fort Worth, Texas , and had employees in several buildings: HDQ1, HDQ2, the Systems Operations Control (SOC) center,

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2640-673: Is common in the U.S. to incorrectly associate aircraft size with the Department of Transportation's designation of major, national, and regional airline. The only corollary is the Regional Airline Association, an industry trade group, defines "regional airlines" generally as "...operat(ing) short and medium haul scheduled airline service connecting smaller communities with larger cities and connecting hubs. The airlines' fleet primarily consists of 19 to 68 seat turboprops and 30 to 100 seat regional jets." To be clear there

2760-602: Is different than how it has been used in the past. For instance, in the United States, around 1960, the term “regional carrier” denoted the smaller eight of the 12 largest carriers, then known as trunk carriers (or trunk airlines or simply trunks). At the time the four biggest airlines in the United States were known as the Big Four, comprising American , United , TWA and Eastern Air Lines . The other eight trunk carriers were Braniff , Capital , Continental , Delta , National , Northeast , Northwest and Western . Since, at

2880-500: Is fully owned by American Airlines Group and does business as American Eagle . Many of these large regional airlines have joined the lobbying group Regional Airline Association . This association lobbies purely for the financial interest of the corporate bodies it constitutes, not the employees of those airlines. In Canada there are a number of regional airlines. Some of them focus on Canadian Arctic and First Nations communities, while others operate regional flights on behalf of

3000-706: Is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. In the table, the names of emerging and developing economies are shown in boldface type, while the names of developed economies are in Roman (regular) type. The twenty largest economies contributing to global GDP (PPP) growth (2007–2017) The expansion of central bank lending in response to

3120-428: Is no distinction in the Department of Transportation definition of major, national and regional airlines by aircraft size. The definition is based on revenue. The clash of definitions has led to confusion in the media and the public. Beginning around 1985, a number of trends have become apparent. Regional aircraft are getting larger, faster, and are flying longer ranges. Additionally, the vast majority of regionals within

3240-687: The Civil Aeronautics Board from 1943 to 1950 include: A history and study of regional airlines was published by the Smithsonian Institution Press in 1994 under the title Commuter Airlines of the United States , by R.E.G. Davies and I. E. Quastler . Since the Airline Deregulation Act of 1978, the US federal government has continued support of the regional airline sector to ensure many of

3360-582: The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed, overhauling financial regulations. It was opposed by many Republicans , and it was weakened by the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. The Basel III capital and liquidity standards were also adopted by countries around the world. The recession was a significant factor in the 2010s European debt crisis . The crisis sparked

3480-654: The Federal Reserve ("Fed") lowered the federal funds rate from 2000 to 2003, institutions increasingly targeted low-income homebuyers, largely belonging to racial minorities , with high-risk loans; this development went unattended by regulators. As interest rates rose from 2004 to 2006, the cost of mortgages rose and the demand for housing fell, causing property values to decline. In early 2007, as more U.S. mortgage holders began defaulting on their repayments, subprime lenders went bankrupt, culminating in April with

3600-474: The Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 11 attacks , as well as to combat a perceived risk of deflation . As early as 2002, it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create

3720-616: The Great Depression . This matters for credit decisions. A homeowner with equity in her home is very unlikely to default on a car loan or credit card debt. They will draw on this equity rather than lose their car and/or have a default placed on their credit record. On the other hand, a homeowner who has no equity is a serious default risk. In the case of businesses, their creditworthiness depends on their future profits. Profit prospects look much worse in November 2008 than they did in November 2007 ... While many banks are obviously at

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3840-689: The Great Recession , which, at the time, was the most severe global recession since the Great Depression. It was also followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 2008–2011 Icelandic financial crisis , which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history. It

3960-581: The Saab 340 . Regional airline Decades before the advent of jet airliners and high-speed, long-range air service, commercial aviation was structured similarly to rail transport networks. In this era, technological limitations on air navigation and propeller-driven aircraft performance imposed strict constraints on the potential length of each flight; some routes covered less than 100 miles (160 km). As such, airlines structured their services along point-to-point routes with many stops between

4080-561: The United States House Committee on Financial Services held a hearing, at the urging of the administration, to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of

4200-410: The aircraft livery for the company they are operating flights for. These airlines can be subsidiaries of the major airline or fly under a code sharing agreement or operating through capacity purchase agreements, with the mainline parent company financing the aircraft for the regional airline, and then placing the aircraft with the regional for very little cost. An example would be Envoy Air , which

4320-453: The mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies . In effect, Wall Street connected this pool of money to the mortgage market in the US, with enormous fees accruing to those throughout the mortgage supply chain , from the mortgage broker selling the loans to small banks that funded the brokers and the large investment banks behind them. By approximately 2003,

4440-403: The "buyer of last resort". During the fourth quarter of 2008, these central banks purchased US$ 2.5 (~$ 3.47 trillion in 2023) trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action in world history. Following a model initiated by the 2008 United Kingdom bank rescue package ,

4560-425: The 19 passenger Embraer/FMA CBA 123 Vector and the 34 seat Dornier 328 were undertaken, but met little financial success, partly due to economic downturn in the airline industry resulting from the outbreak of hostilities when Iraq invaded Kuwait . Many of the regional airlines operating turboprop equipment such as Delta 's regional sister Comair airlines in the United States set the course for bypassing entirely

4680-764: The 2008 financial crisis, consumer regulators in America have more closely supervised sellers of credit cards and home mortgages in order to deter anticompetitive practices that led to the crisis. At least two major reports on the causes of the crisis were produced by the U.S. Congress: the Financial Crisis Inquiry Commission report, released January 2011, and a report by the United States Senate Homeland Security Permanent Subcommittee on Investigations entitled Wall Street and

4800-529: The CRA. They contend that there were two, connected causes to the crisis: the relaxation of underwriting standards in 1995 and the ultra-low interest rates initiated by the Federal Reserve after the terrorist attack on September 11, 2001. Both causes had to be in place before the crisis could take place. Critics also point out that publicly announced CRA loan commitments were massive, totaling $ 4.5 trillion in

4920-855: The DFW American Eagle hangar, the DFW-area warehouse CP-28, the Flight Academy, and the Flagship University. It was scheduled to consolidate operations and move 600 employees from the headquarters, SOC, and training divisions into the Irving offices in July 2014, which were formerly occupied by Epsilon . There were previously bases in Boston, Los Angeles, Nashville, New York, Raleigh/Durham, and San Juan. As of November 2024,

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5040-492: The Envoy Air fleet consists of the following aircraft: In September 2009, AMR Corporation announced plans to add a First Class cabin to its fleet of 25 Bombardier CRJ700 regional jets and also signed a letter of intent with Bombardier, Inc. to exercise options for the purchase of 22 additional CRJ700 aircraft for delivery beginning in the middle of 2010. In January 2014, American Eagle's pilots' union reached an agreement with

5160-491: The Financial Crisis: Anatomy of a Financial Collapse , released April 2011. In total, 47 bankers served jail time as a result of the crisis, over half of which were from Iceland , where the crisis was the most severe and led to the collapse of all three major Icelandic banks. In April 2012, Geir Haarde of Iceland became the only politician to be convicted as a result of the crisis. Only one banker in

5280-486: The LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis, nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending. To other analysts the delay between CRA rule changes in 1995 and the explosion of subprime lending is not surprising, and does not exonerate

5400-600: The SEC's December 2011 securities fraud case against six former executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $ 2 trillion. In the early and mid-2000s, the Bush administration called numerous times for investigations into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003,

5520-549: The U.S. to borrow money from abroad, in the process bidding up bond prices and lowering interest rates. Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $ 650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that

5640-409: The United States did not have wealth declines at all during the crisis because they generally did not own financial investments whose value can fluctuate. The Federal Reserve surveyed 4,000 households between 2007 and 2009, and found that the total wealth of 63% of all Americans declined in that period and 77% of the richest families had a decrease in total wealth, while only 50% of those on the bottom of

5760-487: The United States served jail time as a result of the crisis, Kareem Serageldin , a banker at Credit Suisse who was sentenced to 30 months in jail and returned $ 24.6 million in compensation for manipulating bond prices to hide $ 1 billion of losses. No individuals in the United Kingdom were convicted as a result of the crisis. Goldman Sachs paid $ 550 million to settle fraud charges after allegedly anticipating

5880-606: The United States with more than ten aircraft within their fleet, have lost their individual identities and now serve only as feeders, to Alaska Airlines , American Airlines , Delta Air Lines , or United Airlines major hubs. Regional aircraft in the US have been getting slightly more comfortable with the addition of better ergonomically designed aircraft cabins , and the addition of varying travel classes aboard these aircraft. From small, less than 50-seat "single-class cabin" turboprop , to turbofan regional jet equipment, present day regional airlines provide aircraft such as

6000-429: The United States, are: Mainline carrier-owned Independent contractors The evolution and chronological history of the commuter side of the regional airline industry can be defined by a number of dates prior to the end of the era of airline regulation by the Civil Aeronautics Board of the United States. Among these significant dates are: List of Commuter Airlines in 1977 Prior to Airline Deregulation: Some of

6120-404: The airline hub. Initially these tie ups tended to use small 15 -19 seat aircraft, which did not have a reputation of passenger comfort, or safe reliable operations, by small often under capitalized tiny airline operators. To create a common tie and what appeared to be seamless to the air traveler, major carriers marketed in advertising and soon had much smaller airlines paint their small and what

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6240-598: The airline is the only reasonable link to a larger town. Examples of this are PenAir , which links the remote Aleutian Islands to Anchorage, Alaska , and Mokulele Airlines , which operates in the Hawaiian islands. As an affiliated airline , contracting with a major airline , operating under their brand name (for example, Endeavor Air operates flights under the Delta Connection brand name for Delta Air Lines ), and filling two roles: delivering passengers to

6360-559: The bailout to Fannie Mae and Freddie Mac exceeds $ 300 billion (c. $ 401 billion in 2023 ) (calculated by adding the fair value deficits of the entities to the direct bailout funds at the time). Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles and the global nature of the crisis undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA, or predatory lending were primary causes of

6480-535: The bailouts, such as in the case of the AIG bonus payments controversy , leading to the development of a variety of "decision making frameworks", to help balance competing policy interests during times of financial crisis. Alistair Darling , the U.K.'s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of "a breakdown of law and order" the day that Royal Bank of Scotland

6600-557: The bankruptcy of New Century Financial . As demand and prices continued to fall, the contagion spread to worldwide credit markets by August, and central banks began injecting liquidity . By July 2008, Fannie Mae and Freddie Mac , companies which together owned or guaranteed half of the U.S. housing market, were on the verge of collapse; the Housing and Economic Recovery Act enabled the government to take over and cover their combined $ 1.6 trillion debt on September 7. In response to

6720-726: The brink, consumers and businesses would be facing a much harder time getting credit right now even if the financial system were rock solid. The problem with the economy is the loss of close to $ 6 trillion in housing wealth and an even larger amount of stock wealth. ... the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity

6840-696: The bubble burst, Australian economist John Quiggin wrote, "And, unlike the Great Depression, this crisis was entirely the product of financial markets. There was nothing like the postwar turmoil of the 1920s, the struggles over gold convertibility and reparations, or the Smoot-Hawley tariff , all of which have shared the blame for the Great Depression." Instead, Quiggin lays the blame for the 2008 near-meltdown on financial markets, on political decisions to lightly regulate them, and on rating agencies which had self-interested incentives to give good ratings. Lower interest rates encouraged borrowing. From 2000 to 2003,

6960-501: The committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some, such as Wallison, believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $ 467 billion of mortgage lending

7080-403: The crisis and selling toxic investments to its clients. With fewer resources to risk in creative destruction, the number of patent applications was flat, compared to exponential increases in patent application in prior years. Typical American families did not fare well, nor did the "wealthy-but-not-wealthiest" families just beneath the pyramid's top. However, half of the poorest families in

7200-446: The crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reported: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects." Denice A. Gierach, a real estate attorney and CPA, wrote: ... most of the commercial real estate loans were good loans destroyed by

7320-437: The crisis was not only confined to the Federal Reserve 's provision of aid to individual financial institutions. The Federal Reserve has also conducted a number of innovative lending programs with the goal of improving liquidity and strengthening different financial institutions and markets, such as Freddie Mac and Fannie Mae . In this case, the major problem among the market is the lack of free cash reserves and flows to secure

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7440-526: The crisis. As part of national fiscal policy response to the Great Recession , governments and central banks, including the Federal Reserve , the European Central Bank and the Bank of England , provided then-unprecedented trillions of dollars in bailouts and stimulus , including expansive fiscal policy and monetary policy to offset the decline in consumption and lending capacity, avoid

7560-509: The crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Countering Krugman, Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than

7680-534: The demand of long-range passenger traffic, new and small airlines found niches flying between short and under-served routes to-and-from major airports and more rural destinations. Through the 1960s and 1970s, war surplus designs (notably, the Douglas DC-3 ) were replaced by higher-performance turboprop or jet -powered designs like the Fokker F27 Friendship and BAC One-Eleven . This extended

7800-414: The end of the first quarter of 2009, resulting in a decline in consumption, then a decline in business investment. In the fourth quarter of 2008, the quarter-over-quarter decline in real GDP in the U.S. was 8.4%. The U.S. unemployment rate peaked at 11.0% in October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since

7920-608: The end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs . By March 2011, the FDIC had paid out $ 9 billion (c. $ 12 billion in 2023 ) to cover losses on bad loans at 165 failed financial institutions. The Congressional Budget Office estimated, in June 2011, that

8040-473: The federal funds rate to drop below where it was supposed to be. However, in October 2008, the Federal Reserve was granted the power to provide banks with interest payments on their surplus reserves. This created a motivation for banks to retain their reserves instead of disbursing them, so reducing the need for the Federal Reserve to hedge its increased lending by decreases in alternative assets. Money market funds also went through runs when people lost faith in

8160-426: The financial system and got banks to start lending again, both to each other and to people. Many homeowners who were trying to keep their homes from going into default got housing credits. A package of policies was passed that let borrowers refinance their loans even though the value of their homes was less than what they still owed on their mortgages . While the causes of the bubble and subsequent crash are disputed,

8280-679: The fleet in 2021. On June 20, 2023 at the Paris Air Show , the American Airlines Group ordered seven Embraer 175 jets, on behalf of Envoy Air. The American Eagle brand operated a variety of twin turboprop aircraft over the years via its various regional and commuter airline partners, including the ATR 42 and ATR 72 ; Beechcraft Model 99 ; British Aerospace Jetstream 31 and 32 models; CASA C-212 Aviocar ; Convair 580 ; Fairchild Swearingen Metroliner ; Grumman Gulfstream I (stretched G-IC model); NAMC YS-11 ; Short 330 and Short 360 ; and

8400-457: The government began collecting the data in 1964. The economic crisis started in the U.S. but spread to the rest of the world. U.S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 and the rest of the world depended on the U.S. consumer as a source of demand. Toxic securities were owned by corporate and institutional investors globally. Derivatives such as credit default swaps also increased

8520-609: The government seized Washington Mutual (the largest savings and loan firm ). On October 3, Congress passed the $ 800 billion Emergency Economic Stabilization Act , which authorized the Treasury Department to purchase troubled assets and bank stocks. The Fed began a program of quantitative easing by buying treasury bonds and other assets, such as MBS, and the February 2009 American Recovery and Reinvestment Act , signed by newly elected President Barack Obama , included

8640-553: The government's UDAN (Regional Connectivity Scheme) . Note:- Alliance Air is still a state-owned airline, whereas Air India is private. Australia has an association for regional airline, the Regional Aviation of Australia. More than 2 million passengers and 23 million kg of cargo are involved each year. Post airline deregulation, airlines sought added market share and to do this they sought partnerships with regional and small airlines to feed traffic into

8760-506: The governments of European nations and the United States guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $ 1.5 trillion newly issued preferred stock in major banks. The Federal Reserve created then-significant amounts of new currency as a method to combat the liquidity trap . Bailouts came in the form of trillions of dollars of loans, asset purchases, guarantees, and direct spending. Significant controversy accompanied

8880-513: The growing crisis, governments around the world deployed massive bail-outs of financial institutions and other monetary and fiscal policies to prevent a collapse of the global financial system . After the bankruptcy of Lehman Brothers , the fourth largest U.S. investment bank, on September 15, the next day the Fed bailed out the American International Group (the largest U.S. insurance company), and on September 25

9000-416: The higher capacity CRJ700 , CRJ900 , CRJ1000 series of aircraft and the somewhat larger fuselage Embraer E-Jets . Some of these newer aircraft are capable of flying longer distances with comfort levels that rival and surpass the regional airline equipment of the past. In the early 1990s, much more advanced turboprop-powered, fuel efficient, and passenger friendly DC-3 type replacement projects such as

9120-421: The higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, approximately 9% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%. After

9240-532: The industry entitled "Flying Cheap". In the program, reporter Miles O'Brien questioned how the impact of low salaries are having on pilot psyches and how safe this could be for the flying public. When asked to respond to the question, Roger Cohen, president of the Regional Airline Association, told Frontline that, "...there are many other people who earn less money than that and work more days in these communities that can afford it and do it and do it responsibly." The Small Aircraft Transportation System outlined

9360-461: The introduction of electric aircraft. In some parts of the world, regional airlines face competition from high-speed rail and also coach (bus) services with airlines sometimes replacing feeder services through air rail alliances and contracts with bus companies (e.g., Landline between Philadelphia International Airport and Atlantic City International Airport ). In North America , regional airlines are operated primarily to bring passengers to

9480-635: The lesser known smaller brands used by the regional airlines and their parent companies were: European regional airlines serve the intra-continental sector in Europe . They connect cities to major airports and to other cities, avoiding the need for passengers to make transfers. For example, BA CityFlyer a regional subsidiary of British Airways uses the basic Chatham Dockyard Union Flag livery of its parent company and flies between domestic and European cities. Some of Europe's regional airlines are subsidiaries of national air carriers, though there remains

9600-578: The linkage between large financial institutions. The de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the solvency crisis and caused a decrease in international trade. Reductions in the growth rates of developing countries were due to falls in trade, commodity prices, investment and remittances sent from migrant workers (example: Armenia ). States with fragile political systems feared that investors from Western states would withdraw their money because of

9720-679: The livery of Air France . NLM 's KLM style branding does however pre-date the Air France efforts though by a number of years. The success of the "rebranding" or "pseudo branding" of a much smaller airline into the name recognition of a much larger one soon became clear as passenger numbers soared at Air Alpes, and it was soon decided to paint other aircraft such as the Fokker F-27 into full Air France colours as well. Many airline passengers find sub-branding very confusing, while many other airline passengers are content to think they are on

9840-505: The loans. The Federal Reserve took a number of steps to deal with worries about liquidity in the financial markets. One of these steps was a credit line for major traders, who act as the Fed's partners in open market activities. Also, loan programs were set up to make the money market mutual funds and commercial paper market more flexible. Also, the Term Asset-Backed Securities Loan Facility (TALF)

9960-428: The losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans—generally with low or no downpayments. Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy

10080-680: The mainline airline's sub-brand livery. For example, United Express regional airline partner CommutAir branded its entire fleet as United Express. On the other hand, regional airline Gulfstream International Airlines did not brand their aircraft. When Colgan Air was still operating, they branded a handful of aircraft as Colgan Air, but most were branded as Continental Connection , US Airways Express or United Express , with whom it had contractual agreements. 21st century regional airlines are commonly organized in one of two ways. Operating as an independent airline under their own brand, mostly providing service to small and isolated towns, for whom

10200-410: The mainline airlines, in terms of revenue, many would be designated major airline carrier status based on the only actual definition of "major airline," in the United States, the definition from the U.S. Department of Transportation. This definition is based solely on annual revenue and not on any other criterion such as average aircraft seating capacity, pilot pay, or number of aircraft in the fleet. It

10320-439: The major airline's hubs from surrounding towns, and increasing frequency of service on mainline routes during times when demand does not warrant use of large aircraft, known as commuter flights . One of the first independently owned and managed airlines in the world that rebranded its aircraft to match a larger airline's brand was Air Alpes of France. During 1974, Air Alpes painted its newly delivered short range regional jets in

10440-520: The major airlines. 2007%E2%80%932008 financial crisis The 2007–2008 financial crisis , or the global financial crisis ( GFC ), was the most severe worldwide economic crisis since the 1929 Wall Street crash that began the Great Depression . Causes of the crisis included predatory lending in the form of subprime mortgages to low-income homebuyers and a resulting housing bubble , excessive risk-taking by global financial institutions , and lack of regulatory oversight, which culminated in

10560-501: The major hubs, where they will connect for longer-distance flights on the national airlines also known as flagship carriers . The smallest regional carriers have become known as feeder airlines. The separate corporate structure allows the company to operate under different pay schedules, typically paying much less than their mainline owners. Many large North American airlines, have established operational relationships with one or more regional airline companies. Their aircraft often use

10680-650: The majority report of the Financial Crisis Inquiry Commission, conservative American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by the United States Department of Housing and Urban Development (HUD) in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Based upon information in

10800-599: The market. To keep it from getting worse, the Fed said it would give money to mutual fund companies. Also, Department of Treasury said that it would briefly cover the assets of the fund. Both of these things helped get the fund market back to normal, which helped the commercial paper market, which most businesses use to run. The FDIC also did a number of things, like raise the insurance cap from $ 100,000 to $ 250,000, to boost customer trust. They engaged in Quantitative Easing , which added more than $ 4 trillion to

10920-485: The number of carriers to four. The May 15, 1998, merger of Wings West and Flagship into Simmons (and the name change of Simmons Airlines to American Eagle Airlines) reduced the number of carriers flying as American Eagle under separate operating certificates to two: American Eagle Airlines and Executive Airlines. American Eagle Airlines launched its regional jet service in May 1998 using Embraer ERJ 145 aircraft. AMR struck

11040-415: The originating and terminating air terminals. This system of air transportation effectively forced most airlines to be "regional" in nature, but the lack of distinction among carriers soon began to change with the 1929 launch of Transcontinental Air Transport (T-A-T) in the United States. T-A-T's transcontinental "Lindbergh Line" became America's first contiguous coast-to-coast air service, and it ushered in

11160-526: The precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis , which occurred due to a high default rate and resulting foreclosures of mortgage loans , particularly adjustable-rate mortgages . Some or all of the following factors contributed to the crisis: The relaxing of credit lending standards by investment banks and commercial banks allowed for

11280-501: The price appreciation. In a Peabody Award -winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as

11400-451: The promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide . Depending on how "subprime" mortgages are defined, they remained below 10% of all mortgage originations until 2004, when they rose to nearly 20% and remained there through the 2005–2006 peak of the United States housing bubble . The majority report of the Financial Crisis Inquiry Commission , written by

11520-400: The pyramid suffered a decrease. The following is a timeline of the major events of the financial crisis, including government responses, and the subsequent economic recovery. There is a really good reason for tighter credit. Tens of millions of homeowners who had substantial equity in their homes two years ago have little or nothing today. Businesses are facing the worst downturn since

11640-494: The range of the regionals dramatically, causing a wave of consolidations between the now overlapping airlines. In the United States, regional airlines were an important building block of today's passenger air system. The U.S. Government encouraged the forming of regional airlines to provide services from smaller communities to larger towns, where air passengers could connect to a larger network. The original regional airlines (then known as " Local service carriers ") sanctioned by

11760-468: The rebranding of its American Eagle subsidiary as Envoy. Aircraft operated by American Eagle continued to operate under the current American Eagle branding, but an "Operated by Envoy Air" label was added, similar to the label used by other contract airlines that fly aircraft with American Eagle livery. This name change was created to avoid confusion when American Airlines announced that other regional carriers would operate on behalf of American. The term 'Envoy'

11880-548: The regional carrier's management that guaranteed 60 of the 90 new Embraer 175 aircraft that American Airlines ordered in December were to be operated by Eagle. The deal included options for 90 other aircraft to be operated by the regional carrier. Delivery of the aircraft would begin in the first quarter of 2015. This deal was voted down by the pilots' union, the Air Line Pilots Association (ALPA). Envoy

12000-840: The regional turboprops as they became the first to transition to an all-jet regional jet fleet. To a lesser extent in Europe and the United Kingdom this transition, to notably the Embraer or Canadair designs, was well advanced by the late 1990s. This evolution towards jet equipment, brought the independent regional airlines into direct competition with the major airlines, forcing additional consolidation. To improve on their market penetration, larger airline holding companies rely on operators of smaller aircraft to provide service or added frequency service to some airports. Such airlines, often operating in code-share arrangements with mainline airlines, often completely repaint [1] their aircraft fleet in

12120-416: The relatively conservative government-sponsored enterprises (GSEs) policed mortgage originators and maintained relatively high underwriting standards prior to 2003. However, as market power shifted from securitizers to originators, and as intense competition from private securitizers undermined GSE power, mortgage standards declined and risky loans proliferated. The riskiest loans were originated in 2004–2007,

12240-496: The remaining Bombardier CRJ700 aircraft to PSA Airlines . In March 2020, it was announced that all twenty of the Embraer 175 aircraft operated by Compass Airlines would be transferred to Envoy upon their closure in April 2020. In February 2021, American Airlines announced that the remaining ERJ140 fleet belonging to Envoy would end service on May 5, 2021. On March 1, 2021, Envoy ordered six Embraer 170 jets, expected to enter

12360-610: The six Democratic appointees, the minority report, written by three of the four Republican appointees, studies by Federal Reserve economists, and the work of several independent scholars generally contend that government affordable housing policy was not the primary cause of the financial crisis. Although they concede that governmental policies had some role in causing the crisis, they contend that GSE loans performed better than loans securitized by private investment banks, and performed better than some loans originated by institutions that held loans in their own portfolios. In his dissent to

12480-471: The smaller and more isolated rural communities remain connected to air services. This is encouraged with the Essential Air Service program that subsidizes airline service to smaller U.S. communities and suburban centers, aiming to maintain year-round service. Although regional airlines in the United States are often viewed as small, not particularly lucrative "no name" subsidiaries of

12600-464: The supply of mortgages originated at traditional lending standards had been exhausted, and continued strong demand began to drive down lending standards. The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into

12720-475: The term has been stretched beyond the point of utility. For instance, in a 1983 article about PBA, Provincetown-Boston Airlines , both Air New England and Air Florida are described as regional airlines. At the time, Air New England was a recently-failed turboprop operator in the northeast USA, while Air Florida was a jet carrier flying from Florida to the northeast, to Latin America and Europe. The two airlines had little in common. As flag carriers grew to fill

12840-466: The time, none of these eight had a network approaching the scale of the Big Four, they were known as the regional carriers. This was despite the existence, at the time, of 13 smaller United States scheduled carriers known as local service carriers whose service was arguably far more regional than the “regional” trunks. So when reading historical sources, it’s important to understand that the term "regional airline" has migrated greatly over time. Sometimes

12960-622: The years between 1994 and 2007. They also argue that the Federal Reserve's classification of CRA loans as "prime" is based on the faulty and self-serving assumption that high-interest-rate loans (3 percentage points over average) equal "subprime" loans. Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio magazine, Michael Lewis spoke with one trader who noted that "There weren't enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for

13080-464: The years of the most intense competition between securitizers and the lowest market share for the GSEs. The GSEs eventually relaxed their standards to try to catch up with the private banks. A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy-to-qualify automated underwriting and appraisal systems, by designing no-down-payment products issued by lenders, by

13200-1184: Was also used between April 1980 and April 1981 by an unrelated air charter service that suspended operations and filed bankruptcy before flying any scheduled operations. Envoy began as a collection of regional carriers with contracts to carry the American Eagle brand name. The first American Eagle flight was operated by Metroflight Airlines , which was a wholly owned subsidiary of Metro Airlines (formerly Houston Metro Airlines), on 1 November 1984, from Fayetteville, Arkansas , and Fort Smith, Arkansas , to Dallas/Fort Worth International Airport . Metroflight utilized Convair 580 turboprop aircraft that had been formerly operated by Frontier Airlines . Other carriers that have flown in American Eagle livery include Executive Airlines , Command Airways , Air Virginia , Simmons Airlines , Chaparral Airlines and Wings West Airlines . Among other aircraft in its fleet, Chaparral flew Grumman I-C turboprops which were stretched, 37 passenger regional airliner versions of Grumman's successful propjet business aircraft and

13320-524: Was among the five worst financial crises the world had experienced and led to a loss of more than $ 2 trillion from the global economy. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. The increase in cash out refinancings , as home values rose, fueled an increase in consumption that could no longer be sustained when home prices declined. Many financial institutions owned investments whose value

13440-570: Was awarded 40 new Embraer 175 aircraft with 90 options. Deliveries began on November 13, 2015. In October 2016, Envoy announced that they had taken delivery of two additional Embraer 175 aircraft. In May 2018, Envoy announced that they had taken delivery of fifteen additional Embraer 175 aircraft between March and November 2019 bringing the total of E175's to 69 by the end of 2019. In November 2018, Envoy announced that they had taken delivery of an additional fifteen Embraer 175 aircraft totaling 84 by mid-2020. In December 2019, Envoy transferred all of

13560-450: Was bailed-out. Instead of financing more domestic loans, some banks instead spent some of the stimulus money in more profitable areas such as investing in emerging markets and foreign currencies. In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the United States to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted worldwide. Since

13680-542: Was based on home mortgages such as mortgage-backed securities , or credit derivatives used to insure them against failure, which declined in value significantly. The International Monetary Fund estimated that large U.S. and European banks lost more than $ 1 trillion on toxic assets and from bad loans from January 2007 to September 2009. Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009. The crisis rapidly spread into

13800-550: Was made by Community Reinvestment Act (CRA)-covered lenders into low and mid-level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all subprime lending occurred at CRA-covered institutions and another 25% of subprime loans had some connection with CRA. However, most sub-prime loans were not made to

13920-461: Was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that

14040-401: Was often described as puddle-jumper aircraft, in the image and branding colors of the much larger mainline partner. This was to give the appearance of reliability. Over time these regional aircraft grew in size as airline hubs expanded and competition dwindled among the major carriers. Below is a list of many of the regional brands that evolved when regional airlines were advertised to look like

14160-436: Was one of only a few air carriers to ever operate the type in scheduled passenger service. Until 1987 these third-party carriers flew under contract with American Airlines to provide regional feed to its hubs. During 1987 and 1988 AMR Corp. acquired its regional carriers, starting with Simmons Airlines. AMR's final airline d.b.a. American Eagle acquisition was Executive Airlines in 1989. By mid-1991 AMR had consolidated

14280-592: Was only 40% in 2000. The formerly small regional airlines have grown substantially, through mergers or by the use of a holding company, as pioneered by AMR Corporation in 1982. AMR created the AMR Eagle Holding Corporation which unified its wholly owned American Eagle Airlines and Executive Airlines under one division, but still maintained the regional airlines' operating certificates and personnel separate from each other and American Airlines . The most significant regional airlines in

14400-522: Was put in place thanks to a joint effort with the US Department of the Treasury. This plan was meant to make it easier for consumers and businesses to get credit by giving Americans who owned high-quality asset-backed securities more credit. Before the crisis, the Federal Reserve's stocks of Treasury securities were sold to pay for the increase in credit. This method was meant to keep banks from trying to give out their extra savings, which could cause

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