Brussels, 15/02/2012 (Agence Europe) - Can the crisis be helping low-cost airlines? According to figures just released, the economic slowdown has not affected the budget flights sector, which is attracting new business clientele.
Continuing growth. The European Low Fares Airline Association (ELFAA) has revealed that its nine member companies (easyJet, Flybe, Jet2.com, Norwegian, Ryanair, SverigeFlyg, tranavia.com, vueling and Wizz Air) have increased their dominance of the intra-Europe airline sector. With growth of just under 10% and passenger numbers of almost 190 million in 2011, the low-cost airlines are on the up. They currently hold a 43% share of the intra-Europe point to point market, and this is forecast in increase to 60% by 2020. With two low-cost airlines - Spannair of Spain and Malev of Hungary - going bust since the start of this year, such stunning results come as a surprise. For ELFAA Secretary General John Hanlon, the answer is to be found in “the viability of our model and its popularity with passengers”, demonstrating that it is possible to grow “without the need to go cap in hand to national governments for state hand-outs”. It is a model based on reducing all costs, for example, by using smaller, regional airports, and more modern - and so more fuel-efficient - aeroplanes. The increase in numbers can also be attributed to new business passengers moving from traditional carriers.
New business clientele. “Consumers and business have long realised the benefits of low-cost airlines and increasingly make use of the services of our members. The current economic situation is not the cause of the shift, it only accelerates it”, Hanlon says. ELFAA prides itself on its contribution to job creation in Europe. In 2011, the number of employees at ELFAA airlines increased by 11% to some 30,000. Low-cost airlines, then, are still managing to make hay, despite the crisis. (MD/transl.rt)