Brussels, Belgium. Europe’s regional air connectivity remains under pressure, with island states such as Cyprus facing disproportionate risks from rising costs and rigid regulations, according to the European Regions Airline Association. At the same time, European innovation stakeholders said persistent fragmentation continues to hinder the growth of startups into global scale-ups.
Regional aviation pressures
In an exclusive interview with the Cyprus Mail, ERA said Cyprus illustrates why European aviation policies must reflect the realities facing islands and remote regions.
The association, which represents more than 50 airlines and over 200 companies across the aviation sector, including manufacturers, airports, suppliers and aviation service providers, said regional aviation plays a fundamental role in supporting social cohesion, territorial equality and economic growth across Europe.
ERA said regional carriers operate under conditions that differ significantly from those faced by major network airlines. It said profit margins typically range between 1 and 4 per cent, fleets usually comprise between three and 40 aircraft, and most operators use aircraft with between 19 and 120 seats.
Innovation ecosystem challenges
Speaking to the Cyprus Mail on the sidelines of the 2026 European Innovation Council Summit in Brussels, Eliza Kruczkowska, director of innovation development at the Polish Development Fund, said Europe’s innovation ecosystem must address persistent fragmentation and improve cross-border coordination if startups are to become global scale-ups.
Kruczkowska said Europe has made significant progress in supporting entrepreneurship but still struggles to function as a unified innovation space.
She said the summit offered an important opportunity to engage with stakeholders from across the continent.
“It’s always very useful to meet people from all over Europe,” she said. “Having this dialogue will help us think above our national interest, and I do enjoy this mixture of different opinions and different angles.”
Cyprus competitiveness ranking
Cyprus improved its position in the IMD World Competitiveness Yearbook 2026, rising to 42nd place among 70 economies from 44th place in 2025.
