vandoc
Posts: 8
Joined: Thu Apr 21, 2011 9:54 pm

Re: European LCC

Wed Jun 12, 2019 10:04 pm

senatorflyer wrote:
As far as I recall Eurowings’ financials didn’t improve a single bit, the contrary is the case. Also Wizzair made a €275m net profit in 2018 while Eurowings had an EBIT of €-231m. Wouldn’t call that healthy.


Before 4U took over all flights beside FRA and MUC, LH made a huge loss well over 500 million on these flights. EW and 4U improved the balance sheet and in 2017 they made a profit. In 18 they made a significant loss due to the integration of some airberlin parts. EW is expected to turn a profit in 2019. Seeing from where they started, the tendency is positive.

marcogr12 wrote:
Eurowings has no bases in central europe..Only Germany,Austria and Palma Mallorca..Wizzair has bases in CE Europe and the Baltics,Balkans,VIE n LTN

Mea culpa, I meant the DACH-Region, so Germany, Austria and so on. In my atlas, back when I was in school, Poland or Hungary were still in eastern Europe and central Europe was DACH :).

However the point was, EWs homemarket isn't just western Germany and further bases in Europe are planned.
 
senatorflyer
Posts: 301
Joined: Tue Jul 24, 2012 10:57 am

Re: European LCC

Wed Jun 12, 2019 10:13 pm

vandoc wrote:
senatorflyer wrote:
As far as I recall Eurowings’ financials didn’t improve a single bit, the contrary is the case. Also Wizzair made a €275m net profit in 2018 while Eurowings had an EBIT of €-231m. Wouldn’t call that healthy.


Before 4U took over all flights beside FRA and MUC, LH made a huge loss well over 500 million on these flights. EW and 4U improved the balance sheet and in 2017 they made a profit. In 18 they made a significant loss due to the integration of some airberlin parts. EW is expected to turn a profit in 2019. Seeing from where they started, the tendency is positive.

marcogr12 wrote:
Eurowings has no bases in central europe..Only Germany,Austria and Palma Mallorca..Wizzair has bases in CE Europe and the Baltics,Balkans,VIE n LTN

Mea culpa, I meant the DACH-Region, so Germany, Austria and so on. In my atlas, back when I was in school, Poland or Hungary were still in eastern Europe and central Europe was DACH :).

However the point was, EWs homemarket isn't just western Germany and further bases in Europe are planned.


Most likely they have made only a profit that year because Air Berlin went bust. This year started really bad and all previous years EW (Germanwings) have made a loss. Their cost structure is not much different to LH so it’s pretty useless as LCC.

https://investor-relations.lufthansagro ... 19-1-e.pdf And the losses get worse and worse.
 
User avatar
PatrickZ80
Posts: 3552
Joined: Tue Jul 13, 2010 5:33 am

Re: European LCC

Wed Jun 12, 2019 10:41 pm

Blerg wrote:
MCTSET wrote:
VIE will be very important, the reason why there is so much expansion at VIE is because the airport is offering a rebate of €540 euros per 100 pax, and it increases for more pax flow in the airport, this is for based airlines btw. Lauda is interesting but again the market seems so full for Central Europe to med flights, and popular city shuttles is easyJet’s bread and butter, so we will see


Yes but what happens when winter comes and when demand to the seaside resorts drops? Who will then fill those high density airplanes?


Even during the winter places like the Canary Islands are still comfortably warm, although not as warm as in the summer of course. Since these destinations are a bit further away, this means longer flights resulting in less flights but an equal number or flying hours. Wizzair even flies to Dubai (DWC) from several of their bases.
 
Blerg
Posts: 1773
Joined: Tue Jan 09, 2018 11:42 am

Re: European LCC

Thu Jun 13, 2019 6:38 am

PatrickZ80 wrote:
Blerg wrote:
MCTSET wrote:
VIE will be very important, the reason why there is so much expansion at VIE is because the airport is offering a rebate of €540 euros per 100 pax, and it increases for more pax flow in the airport, this is for based airlines btw. Lauda is interesting but again the market seems so full for Central Europe to med flights, and popular city shuttles is easyJet’s bread and butter, so we will see


Yes but what happens when winter comes and when demand to the seaside resorts drops? Who will then fill those high density airplanes?


Even during the winter places like the Canary Islands are still comfortably warm, although not as warm as in the summer of course. Since these destinations are a bit further away, this means longer flights resulting in less flights but an equal number or flying hours. Wizzair even flies to Dubai (DWC) from several of their bases.


I understand that but I wonder if there is enough demand for all of them to serve these winter markets, demand drops compared to summer.

I wonder if W6 considered introducing Dubai from Vienna. Might be a tough market with EK in Vienna and FZ in BTS.
 
finnishway
Posts: 538
Joined: Sat Jul 14, 2012 5:17 pm

Re: European LCC

Thu Jun 13, 2019 7:27 am

Europe is just waiting for more cobaolidation. Volotea for example will soon be bought by larger LCC. Just a matter of time.
 
VSMUT
Posts: 2551
Joined: Mon Aug 08, 2016 11:40 am

Re: European LCC

Thu Jun 13, 2019 7:36 am

finnishway wrote:
Europe is just waiting for more cobaolidation.


What makes you think so?
 
finnishway
Posts: 538
Joined: Sat Jul 14, 2012 5:17 pm

Re: European LCC

Thu Jun 13, 2019 7:48 am

VSMUT wrote:
finnishway wrote:
Europe is just waiting for more cobaolidation.


What makes you think so?


Sorry my typo. I meant to write consolidation.

But it is inevitable that there will be a few large groups in Europe just like in US. Small independent airlines just can’t compete in this industry.

https://www.google.fi/amp/s/www.forbes.com/sites/oliverwyman/2018/10/30/for-european-airlines-consolidation-has-become-both-necessary-and-inevitable/amp/

https://www.google.fi/amp/s/www.cnbc.com/amp/2019/06/02/europes-airline-sector-is-prime-for-consolidation-lufthansa-ceo.html
 
SIVB
Posts: 1
Joined: Thu Jun 13, 2019 7:22 am

Re: European LCC

Thu Jun 13, 2019 7:54 am

SCQ83 wrote:
Volotea was set by the same founders of Vueling so it was born to be sold to IAG. Private equity 101. Back in the day Vueling was an independent carrier born to compete with Clickair (Iberia's low-cost carrier). Iberia purchased Vueling and merge it with Clickair and in the process the original Vueling people made some money.


Actually, Clickair was born to compete with Vueling, not backwards like you said. VY was created in 2004, and Iberia tried to buy them only to meet resistance from their founders Carlos Muñoz and Lazaro Ros. Apparently, they had big plans for VY including a big base in Madrid, and IB felt threatened. So their answer was the creation of Clickair in 2006, which basically was a quick transfer of planes, routes and passengers in BCN. By 2008 they were both bleeding money, as the market couldn't support at the time 2 local LCCs, plus Spanair. There was a coup d'état in Vueling's management that took control away from Muñoz & Ros and sold the company to Iberia, merging it with Clickair.

Going back to the discussion, I think that Ryanair, easyJet and Wizzair are well positioned to survive for a long time. But I think all 3 of them will have sort of a identity crisis: Ryanair will try to complicate things with new companies under the umbrella corporation only to realize that they need to simplify again the structure; easyJet will struggle with it's higher cost base and leisure/business focus; and Wizzair will try to go too big and be everywhere but retreat to its eastern stronghold.

Vueling will survive under IAG's umbrella, so will Eurowings under LH Group. The former will grow in local markets where is strong, the latter will grow through acquisitions (sorry to see you go Brussels, watching you Austrian...). Smaller players will appear and disappear from time to time.

A big unknown for me is Norwegian... I'm not sure about their future, maybe they will slowly shrink until one of the big holdings buy them, of maybe they will go big themselves. Time will only tell...
 
VSMUT
Posts: 2551
Joined: Mon Aug 08, 2016 11:40 am

Re: European LCC

Thu Jun 13, 2019 8:18 am

finnishway wrote:
VSMUT wrote:
finnishway wrote:
Europe is just waiting for more cobaolidation.


What makes you think so?


Sorry my typo. I meant to write consolidation.

But it is inevitable that there will be a few large groups in Europe just like in US. Small independent airlines just can’t compete in this industry.


The US can't be used as the precedent for everything. What they did over there was crazy, such consolidation would never be tolerated in Europe. The US development of consolidation isn't being mirrored in other parts of the world either.

Also worth noting that Europeans travel more and the continent has twice the population of the US.
 
finnishway
Posts: 538
Joined: Sat Jul 14, 2012 5:17 pm

Re: European LCC

Thu Jun 13, 2019 8:33 am

VSMUT wrote:
finnishway wrote:
VSMUT wrote:

What makes you think so?


Sorry my typo. I meant to write consolidation.

But it is inevitable that there will be a few large groups in Europe just like in US. Small independent airlines just can’t compete in this industry.


The US can't be used as the precedent for everything. What they did over there was crazy, such consolidation would never be tolerated in Europe. The US development of consolidation isn't being mirrored in other parts of the world either.

Also worth noting that Europeans travel more and the continent has twice the population of the US.


You may not want it but it will happen. You can count it yourself that Lufthansa Group, IAG, Ryanair, easyJet and AF-KLM already carry huge majority of passengers in Europe.

It is just matter of time that airlines like Alitalia, SAS, TAP, Norwegian, Volotea, Air Baltic and many smaller will either disappear or will be integrated into larger group. Yes, there will be smaller airlines in the future also, but they are not really threat to larger groups and larger groups also need smaller airlines to feed traffic.

Wizz Air may also be integrated in to one of the groups. Although their costbase is probably lowest in Europe which is good for them.

There will be more airlines in Europe to go bankrupt this year.
 
VSMUT
Posts: 2551
Joined: Mon Aug 08, 2016 11:40 am

Re: European LCC

Thu Jun 13, 2019 8:34 am

finnishway wrote:
VSMUT wrote:
finnishway wrote:

Sorry my typo. I meant to write consolidation.

But it is inevitable that there will be a few large groups in Europe just like in US. Small independent airlines just can’t compete in this industry.


The US can't be used as the precedent for everything. What they did over there was crazy, such consolidation would never be tolerated in Europe. The US development of consolidation isn't being mirrored in other parts of the world either.

Also worth noting that Europeans travel more and the continent has twice the population of the US.


You may not want it but it will happen. You can count it yourself that Lufthansa Group, IAG, Ryanair, easyJet and AF-KLM already carry huge majority of passengers in Europe.

It is just matter of time that airlines like Alitalia, SAS, TAP, Norwegian, Volotea, Air Baltic and many smaller will either disappear or will be integrated into larger group. Yes, there will be smaller airlines in the future also, but they are not really threat to larger groups and larger groups also need smaller airlines to feed traffic.

Wizz Air may also be integrated in to one of the groups. Although their costbase is probably lowest in Europe which is good for them.

There will be more airlines in Europe to go bankrupt this year.


And new ones will rise, as has always been the case. This is nothing new, it's a cyclus that has been running for ages.
 
MCTSET
Topic Author
Posts: 47
Joined: Wed Jan 02, 2019 8:45 pm

Re: European LCC

Thu Jun 13, 2019 8:53 am

finnishway wrote:
VSMUT wrote:
finnishway wrote:

Sorry my typo. I meant to write consolidation.

But it is inevitable that there will be a few large groups in Europe just like in US. Small independent airlines just can’t compete in this industry.


The US can't be used as the precedent for everything. What they did over there was crazy, such consolidation would never be tolerated in Europe. The US development of consolidation isn't being mirrored in other parts of the world either.

Also worth noting that Europeans travel more and the continent has twice the population of the US.


You may not want it but it will happen. You can count it yourself that Lufthansa Group, IAG, Ryanair, easyJet and AF-KLM already carry huge majority of passengers in Europe.

It is just matter of time that airlines like Alitalia, SAS, TAP, Norwegian, Volotea, Air Baltic and many smaller will either disappear or will be integrated into larger group. Yes, there will be smaller airlines in the future also, but they are not really threat to larger groups and larger groups also need smaller airlines to feed traffic.

Wizz Air may also be integrated in to one of the groups. Although their costbase is probably lowest in Europe which is good for them.

There will be more airlines in Europe to go bankrupt this year.


I think Ryanair have the lowest cost base but only marginally, this is because they own the vast majority of their aircraft and don’t have to lease them as wizz do which is more expensive than owning even with a mammoth discount from airbus.
 
finnishway
Posts: 538
Joined: Sat Jul 14, 2012 5:17 pm

Re: European LCC

Thu Jun 13, 2019 8:58 am

VSMUT wrote:
finnishway wrote:
VSMUT wrote:

The US can't be used as the precedent for everything. What they did over there was crazy, such consolidation would never be tolerated in Europe. The US development of consolidation isn't being mirrored in other parts of the world either.

Also worth noting that Europeans travel more and the continent has twice the population of the US.


You may not want it but it will happen. You can count it yourself that Lufthansa Group, IAG, Ryanair, easyJet and AF-KLM already carry huge majority of passengers in Europe.

It is just matter of time that airlines like Alitalia, SAS, TAP, Norwegian, Volotea, Air Baltic and many smaller will either disappear or will be integrated into larger group. Yes, there will be smaller airlines in the future also, but they are not really threat to larger groups and larger groups also need smaller airlines to feed traffic.

Wizz Air may also be integrated in to one of the groups. Although their costbase is probably lowest in Europe which is good for them.

There will be more airlines in Europe to go bankrupt this year.


And new ones will rise, as has always been the case. This is nothing new, it's a cyclus that has been running for ages.


That is true, but it is very unlikely that new airline would become a major player in the industry and could actually compete against these large groups.

But you missed the point. Those already large airlines I mentioned that are currently operating will probably be part of history in the near future. Even without mergers you just need economic downturn and airline like Ryanair and they drive competition out.
 
Blerg
Posts: 1773
Joined: Tue Jan 09, 2018 11:42 am

Re: European LCC

Thu Jun 13, 2019 10:34 am

finnishway wrote:
VSMUT wrote:
finnishway wrote:

You may not want it but it will happen. You can count it yourself that Lufthansa Group, IAG, Ryanair, easyJet and AF-KLM already carry huge majority of passengers in Europe.

It is just matter of time that airlines like Alitalia, SAS, TAP, Norwegian, Volotea, Air Baltic and many smaller will either disappear or will be integrated into larger group. Yes, there will be smaller airlines in the future also, but they are not really threat to larger groups and larger groups also need smaller airlines to feed traffic.

Wizz Air may also be integrated in to one of the groups. Although their costbase is probably lowest in Europe which is good for them.

There will be more airlines in Europe to go bankrupt this year.


And new ones will rise, as has always been the case. This is nothing new, it's a cyclus that has been running for ages.


That is true, but it is very unlikely that new airline would become a major player in the industry and could actually compete against these large groups.

But you missed the point. Those already large airlines I mentioned that are currently operating will probably be part of history in the near future. Even without mergers you just need economic downturn and airline like Ryanair and they drive competition out.



I disagree with you and like someone mentioned above, the US is a different case and shouldn't be compared to Europe. JetBlue is the youngest US airline that made it and they were founded back in 2000.

On the other hand, look at Europe, since then we had more players that were founded and actually made it. Wizz Air has 104 aircraft and was founded in 2003. Aegean was founded in 1999 and has 49 aircraft. Blue Air was founded in 2004 and has 23 aircraft. Volotea was founded in 2012 and has 32 aircraft....

Most of the airlines in Europe are linked to a certain region, Ryanair is truly the only exception as they have a pan-European presence. Even with Wizz Air's growth they are still focused on eastern Europe and the Balkans. On top of that, European legacies are struggling to maintain their LCC offspring, just look at the operational mess that Vueling becomes every summer, Eurowings has horrible financial performance while Transavia struggles with its identity crisis.

So I don't think a consolidation is coming any time soon.
 
IndianicWorld
Posts: 3156
Joined: Mon Jun 04, 2001 11:32 am

Re: European LCC

Thu Jun 13, 2019 10:52 am

Consolidation in Europe will take longer but it is already on its way.

AF-KLM
IAG
LH Group

Who would have thought that some of the carriers that now form part of those 3 groups would have merged if looking at things at the turn of the century? Likely most would have laughed at it off as impossible, given national pride reasons usually.

These airlines have all been slowly seeking new opportunities to add new investments to their businesses. Each now has a strategy that takes in each market sector, along with a broader strategy to grow their reach in Europe.

Politics will be a strong barrier in many cases to some potential integration opportunities, but I do see some further movement in the LCC sector in the next few years.
 
VSMUT
Posts: 2551
Joined: Mon Aug 08, 2016 11:40 am

Re: European LCC

Thu Jun 13, 2019 11:35 am

Blerg wrote:
finnishway wrote:
VSMUT wrote:

And new ones will rise, as has always been the case. This is nothing new, it's a cyclus that has been running for ages.


That is true, but it is very unlikely that new airline would become a major player in the industry and could actually compete against these large groups.

But you missed the point. Those already large airlines I mentioned that are currently operating will probably be part of history in the near future. Even without mergers you just need economic downturn and airline like Ryanair and they drive competition out.



I disagree with you and like someone mentioned above, the US is a different case and shouldn't be compared to Europe. JetBlue is the youngest US airline that made it and they were founded back in 2000.

On the other hand, look at Europe, since then we had more players that were founded and actually made it. Wizz Air has 104 aircraft and was founded in 2003. Aegean was founded in 1999 and has 49 aircraft. Blue Air was founded in 2004 and has 23 aircraft. Volotea was founded in 2012 and has 32 aircraft....

Most of the airlines in Europe are linked to a certain region, Ryanair is truly the only exception as they have a pan-European presence. Even with Wizz Air's growth they are still focused on eastern Europe and the Balkans. On top of that, European legacies are struggling to maintain their LCC offspring, just look at the operational mess that Vueling becomes every summer, Eurowings has horrible financial performance while Transavia struggles with its identity crisis.

So I don't think a consolidation is coming any time soon.


I was going to mention pretty much the same.

On top, you also have airlines like LOT or SAS, whom were destined for bankruptcy or takeover 10 years ago, but are now strong and thriving brands. Does anybody really see LOT as a takeover target any more? Even TAROM has proven remarkably resilient in the onslought of ULCCs at OTP.

I did a bit of work for another company that through the takeover of a bunch of ACMI, regional and a single small LCC carrier is planning to start a operations with almost 60 planes soon. So something is definitely happening, it isn't only consolidation.
 
IndianicWorld
Posts: 3156
Joined: Mon Jun 04, 2001 11:32 am

Re: European LCC

Thu Jun 13, 2019 11:45 am

VSMUT wrote:
Blerg wrote:
finnishway wrote:

That is true, but it is very unlikely that new airline would become a major player in the industry and could actually compete against these large groups.

But you missed the point. Those already large airlines I mentioned that are currently operating will probably be part of history in the near future. Even without mergers you just need economic downturn and airline like Ryanair and they drive competition out.



I disagree with you and like someone mentioned above, the US is a different case and shouldn't be compared to Europe. JetBlue is the youngest US airline that made it and they were founded back in 2000.

On the other hand, look at Europe, since then we had more players that were founded and actually made it. Wizz Air has 104 aircraft and was founded in 2003. Aegean was founded in 1999 and has 49 aircraft. Blue Air was founded in 2004 and has 23 aircraft. Volotea was founded in 2012 and has 32 aircraft....

Most of the airlines in Europe are linked to a certain region, Ryanair is truly the only exception as they have a pan-European presence. Even with Wizz Air's growth they are still focused on eastern Europe and the Balkans. On top of that, European legacies are struggling to maintain their LCC offspring, just look at the operational mess that Vueling becomes every summer, Eurowings has horrible financial performance while Transavia struggles with its identity crisis.

So I don't think a consolidation is coming any time soon.


I was going to mention pretty much the same.

On top, you also have airlines like LOT or SAS, whom were destined for bankruptcy or takeover 10 years ago, but are now strong and thriving brands. Does anybody really see LOT as a takeover target any more? Even TAROM has proven remarkably resilient in the onslought of ULCCs at OTP.

I did a bit of work for another company that through the takeover of a bunch of ACMI, regional and a single small LCC carrier is planning to start a operations with almost 60 planes soon. So something is definitely happening, it isn't only consolidation.


There is always bound to be opportunities out there in some way, shape or form as the industry evolves, but some seemingly ruling out further consolidation as a possibility seeks a bit myopic.

Past history tells us to expect the unexpected, so I wouldn’t be ruling anything out.

In the US for example, given the significant changes to the competitive landscape, some carriers have come and gone, and others strengthened, since consolidation has occurred, but new carriers like Moxy appear to be still seeing room to come into the market.
 
VSMUT
Posts: 2551
Joined: Mon Aug 08, 2016 11:40 am

Re: European LCC

Thu Jun 13, 2019 11:55 am

IndianicWorld wrote:
VSMUT wrote:
Blerg wrote:


I disagree with you and like someone mentioned above, the US is a different case and shouldn't be compared to Europe. JetBlue is the youngest US airline that made it and they were founded back in 2000.

On the other hand, look at Europe, since then we had more players that were founded and actually made it. Wizz Air has 104 aircraft and was founded in 2003. Aegean was founded in 1999 and has 49 aircraft. Blue Air was founded in 2004 and has 23 aircraft. Volotea was founded in 2012 and has 32 aircraft....

Most of the airlines in Europe are linked to a certain region, Ryanair is truly the only exception as they have a pan-European presence. Even with Wizz Air's growth they are still focused on eastern Europe and the Balkans. On top of that, European legacies are struggling to maintain their LCC offspring, just look at the operational mess that Vueling becomes every summer, Eurowings has horrible financial performance while Transavia struggles with its identity crisis.

So I don't think a consolidation is coming any time soon.


I was going to mention pretty much the same.

On top, you also have airlines like LOT or SAS, whom were destined for bankruptcy or takeover 10 years ago, but are now strong and thriving brands. Does anybody really see LOT as a takeover target any more? Even TAROM has proven remarkably resilient in the onslought of ULCCs at OTP.

I did a bit of work for another company that through the takeover of a bunch of ACMI, regional and a single small LCC carrier is planning to start a operations with almost 60 planes soon. So something is definitely happening, it isn't only consolidation.


There is always bound to be opportunities out there in some way, shape or form as the industry evolves, but some seemingly ruling out further consolidation as a possibility seeks a bit myopic.

Past history tells us to expect the unexpected, so I wouldn’t be ruling anything out.

In the US for example, given the significant changes to the competitive landscape, some carriers have come and gone, and others strengthened, since consolidation has occurred, but new carriers like Moxy appear to be still seeing room to come into the market.


And again, the US market can't just be seen as a precedent. Twice the population, more people travel and lastly, governments here won't accept further consolidation. There is also not a debilitating lack of pilots in Europe, a major hindrance in the US.
 
IndianicWorld
Posts: 3156
Joined: Mon Jun 04, 2001 11:32 am

Re: European LCC

Thu Jun 13, 2019 12:03 pm

VSMUT wrote:
IndianicWorld wrote:
VSMUT wrote:

I was going to mention pretty much the same.

On top, you also have airlines like LOT or SAS, whom were destined for bankruptcy or takeover 10 years ago, but are now strong and thriving brands. Does anybody really see LOT as a takeover target any more? Even TAROM has proven remarkably resilient in the onslought of ULCCs at OTP.

I did a bit of work for another company that through the takeover of a bunch of ACMI, regional and a single small LCC carrier is planning to start a operations with almost 60 planes soon. So something is definitely happening, it isn't only consolidation.


There is always bound to be opportunities out there in some way, shape or form as the industry evolves, but some seemingly ruling out further consolidation as a possibility seeks a bit myopic.

Past history tells us to expect the unexpected, so I wouldn’t be ruling anything out.

In the US for example, given the significant changes to the competitive landscape, some carriers have come and gone, and others strengthened, since consolidation has occurred, but new carriers like Moxy appear to be still seeing room to come into the market.


And again, the US market can't just be seen as a precedent. Twice the population, more people travel and lastly, governments here won't accept further consolidation. There is also not a debilitating lack of pilots in Europe, a major hindrance in the US.


I am acutely aware they are different situations, but as I alluded to in an earlier post, things aren’t always what they seem.

People that claim that national interest will stop consolidation occurring have overlooked the amount of change already.

Things will happen when they happen, but in this industry it pays to have an open mind as it can be a rollercoaster ride.
 
BrianDromey
Posts: 2369
Joined: Sun Dec 10, 2006 2:23 am

Re: European LCC

Thu Jun 13, 2019 12:17 pm

The US market is not directly comparable for many reasons, but one Ive not seen mentioned is the much higher use of 50-90 seat regional jets to promote higher frequency, much higher point-to-hub flying and much less true point-to-point. The European LCCs have the philosophy of "stack them high and sell them cheap", Ryanair and Wizz especially. easyJet are slightly more up-market, slightly higher cost base and although able to complete on high volume routes against the "EU3", they are much less successful against FR and W6.

I think the likes of Volotea have a good business model, much more like Spirit than the FR/W6/U2 with low frequency flights, 150 seat aircraft and low capital costs. They mainly operate outside the major FR/W6 bases. The risk to them is if FR takes interest - but with both W6 and FR moving to ~200+ seat aircraft, they have a lot of seats to fill.
 
Blerg
Posts: 1773
Joined: Tue Jan 09, 2018 11:42 am

Re: European LCC

Thu Jun 13, 2019 2:29 pm

I think another major difference between the US and Europe (or more likely the EU) is that over here we also have airlines from the Euro-Mediterranean region which function on a completely different model and not always based on sane economic and business principles. Some of those include Aeroflot, Turkish Airlines and pretty much all MENA airlines. How many serious competitors do the US carriers have from Canada, Mexico or the Caribbean? This is especially interesting when you look at the summer holiday traffic and how many different airlines are there on the market. I mean even nearly bankrupt Greece has Ellinair which is growing at a rapid pace.

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