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To allow such dramatic change to take place, much convenience such as free meals and drinks had to be abandoned. The market has undergone significant change over the last decade. And it is the last two years that has seen an increasing trend towards the low-cost model.

Low Cost Carriers - Evolution, Strategies and Performance

As a result, customers can choose from a greater choice of routes at lower fares than ever before. But not only passengers benefit. Low-cost carriers LCCs have created a large amount of jobs. Many aviation professionals who were made redundant by struggling airlines such as Sabena or Swiss after September 11th got jobs with LCCs. Nevertheless, airline managers are starting to realize that the time of endless growth and success is slowing down or, in the worst case, coming to an end.

The aim is to realize its strength and weakness by scrutinizing the market and to position the airline in a way that substantial long-term growth is still possible. Especially as market consolidation is already taking place and competition is increasingly fierce: The outlook is that the market will be dominated by just two or three low-cost carriers within Europe and some full-service airlines operating world-wide networks. Strategies must be determined now to find the best market, the right network and competitive costs.

This essay will firstly look at commercial aviation in Europe.

Unternehmensdetails

Following that will be an analysis of the leading carriers and their business strategies. After the economic collapse following the year the air transport industry has been struggling to recover. However, with these factors disappearing and cost-cutting measures taking effect, air traffic finally started to recover. The number of carried passengers in the EU25 reached million [2] , which was an increase by 7. An Average Annual Growth Rate of 4. The importance of the London area in general is stressed by the fact that Gatwick airport is also generating almost 30m, Stansted close to 19m passengers.

That brings the number of London passengers to more than m. On the other hand, taking Orly airport into account as well, gives an estimated When it comes to domestic passengers national air traffic , Spain is in the lead with 31m passengers, followed by France, Italy, Germany and the UK.

Unternehmensdetails

EasyJet EZY for example launched routes to all the joining states [7]. However, Western Europe remains to be the primary market [8]. This can be achieved by gaining market share from incumbent airlines and smaller companies. Expanding into domestic markets will be another source of growth [12].

Budget Airlines Comparison - Allegiant vs. Frontier vs. Spirit

The general popularity of non-premium travel has brought a large number of new companies on to the scene. Compared to three years ago, the number of LCCs has increased from seven to Passenger figures are estimated at about —m, whereas low-cost share is about 92m. There are a number of smaller low-cost airlines, mostly operating in peripheral markets.


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