Can General Aviation Fix the Skewed Airline Value Chain?

 The commercial airline industry is stuck in a structural paradox: despite being an essential service that connects the world, it has never been a truly profitable business. As highlighted by IATA’s Chief Economist Marie Owens Thomsen, the global airline profit margin has never exceeded 5%. This is due to a skewed value chain shaped by legacy policies, oligopolistic aircraft manufacturing, volatile fuel pricing, and extreme price sensitivity among passengers.

But there may be a lifeline outside of this traditional framework — General Aviation (GA).

GA, which includes everything from private charters to small-scale commercial services and air taxis, offers agility, innovation, and decentralized economic models. Unlike large commercial airlines, GA operators have the flexibility to:

  • Avoid legacy infrastructure bottlenecks

  • Deploy newer, more efficient aircraft faster

  • Adopt sustainable aviation fuel (SAF) and electric propulsion

  • Serve niche markets and underserved routes profitably

If policy frameworks can nurture this segment — through regulatory reforms, infrastructure support at smaller airports, and R&D investment — GA could shift some of the pressure away from major carriers while creating a more balanced aviation ecosystem.

As Thomsen noted, if countries like India lead this transformation, the ripple effect could inspire global change. Perhaps the future of a sustainable and profitable airline industry lies not in bigger jets, but in smaller, smarter aviation.

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