HAS THE LOW-FARE MOMENT PASSED?

The low-fare arm of the airline industry may be reaching the end of its immunity to the economic woes that have plagued the higher-priced, more established carriers. Low-cost carriers (LCCs), however, have had their share of financial problems. Most airlines started since the deregulation of the U.S. market have failed. America West, according to Standard and Poor's, is the only post-deregulation carrier started in that period that is still flying. In Europe LCCs are facing increasing challenges. A recent study shows that LCCs are likely to boost their share of passengers from 19% to 33% by 2010, up from just 5% in 2000, but many of them will go out of business before then. European network carriers appear well-positioned to withstand LCC challenges. Slower growth is expected to create over-capacity, and the smaller carriers are already committed to major expansion of their fleets. Surplus flights are starting to show up at places like Dublin, Cologne and Brussels, and some routes are being discontinued. Another factor is the growing convergence of charter, scheduled and LCC offering. The article also examines LCC trends in the U.S., Canada, and Asia.

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  • Corporate Authors:

    Penton Media

    1300 E 9th Street
    Cleveland, OH  United States  44114-1503
  • Authors:
    • Thomas, G
  • Publication Date: 2005-8

Language

  • English

Media Info

  • Features: Photos;
  • Pagination: pp 20-22
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01006946
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Nov 8 2005 7:33AM