Number of Low-Cost Airlines in Europe Projected to Come Down

In yet another report indicating consolidation in low-cost airline market in Europe, a publication has reported that Europe´s budget airlines market has grown to its maximum size, with no more growth possible.

According to CNBC European Business, with too many operators and too many seats available, no-frills airlines can only expect to gain more market share at the expense of others´ failure. According to iccheshireonline.icnetwork.co.uk, CNBC European Business, in its latest issue, says the over-heated, ruthlessly competitive air travel industry is littered with collapses.

“A host of new airlines including Poland´s Wizz Air, Spain´s Vueling and Germanwings have sprung up to compete for European passengers with the budget giants Ryanair and easyJet,” said the magazine. “Budget carriers have stripped their service to the bone to attract tourist trade and are now focusing on business travelers for their bread and butter. Yet with insufficient passengers for the seats available, such slight margins may prove disastrous to the smaller operators.”

Last month, a report said the sector is set for consolidation, drawing an analogy with the US sector.

“With more than 50 players, the European low-cost airline sector is set for a shake-up that will clip the wings of all but a few. Analysts say the experience of the United States, where most low-cost airlines have failed, suggests that Europe cannot continue to support the slew of operators currently taking off from its runways,” reports marketwatch.com.

Referring to low-cost carriers in Europe, David Stewart, head of the European office and co-founder of aviation consultancy AeroStrategy, had termed the present count as “unsustainable”.

That total changes from week to week, as some carriers go belly up, while low interest rates, a glut of second-hand airplanes and the success of the market leaders continue to entice new entrants into the market. Stewart, meanwhile, believes only three or four big low-cost carriers will still be flying in a few years.