LGS6753 had the key points. Although I'm going to be picky about the phrase 'in a generation' I think the current depression is the greatest in 100 years. Although the govts have down a lot of behind the scenes footwork (and moneywork) to prevent it showing up in the books as a Great Depression - it certainly is. End of picky!
The regional fields have been further deeply affected by the BA/LHR situation. We have discussed in here before how BA bought up the regional feeders and moved the flights to LGW to get the LHR slots. This was all legal but the lack of capacity at LHR prevented the regionals being strong. Consequently, KLM, LH and others took them to their continental hubs and the LCCs did the rest. Now the M.E. carriers are doing the same for long haul. There is no way back from this.
So because the market place was not allowed to operate normally (provide more capacity at LHR) it caused the regional fields to open up. In time, the regional carriers were picked off by the big people, overtaken by the LCCs or withered on the vine. Now the regional fields are bbeing withered. There is no way back from this.
One of my regular domestics was IOM, using LHR then LTN across 25 years. Now EZY has taken the route from BE and run it from LGW. In 1981 I paid £175 and short notice £250 for a long weekend, now (booking ahead) it's £45. I go no more than once a year now but no one can argue with that price. Yes, there will be fewer flights but that is how markets work and I agree that subsidising is pointless.
I agree that more small fields and operators will go. The customer, however, will still have a choice wider and cheaper than they had 25 years ago. To some, that might be considered good, to some the loss of the local field is understandably frustrating and I'm irritated that my local LTN service to the IOM is now from LGW but, even with the cost and time of getting there, it's still cheaper. I, like one or two other people, are trying to spend as little money as possible!
In passing, I find it amusing that NIMBYs who don't like airports, like the idea of them being turned into housing even less.
