Airline industry is one of the fragile industries in the market. Since the tragic events of September 11th some of its profound consequences are coming to light now. As events have been unfolded it has been thought inevitable that the airline industry would suffer heavily, stocks have been devalued and ticket prices are all time low. The national airlines have certainly been forced to retrench, cutting the number of short haul European destinations where costs are too high. Sabena, Belgians national airline and one of the oldest in the world has gone out of business. Swissair has had similar liquidity problems and has had to be bailed out by the Swiss government.
Low cost however, have for the most part averted many problems that could be associated with consumer confidence and have remained profitable.
Key PlayersThe key player f the no-frills/low cost airline are:Ryanair- carrying 15 million passengers a year through the UK and Western Europe.
In late January Ryanair acquired Buzz, the low cost of KLM for Ã¯Â¿Â½.95 million. An Irish entrepreneur founded the company in 1985.
EasyJet- EasyJet is Europe's leading low-cost airline. Since its first flight in November 1995, the airline has grown from a Luton base offering two routes from Luton to Glasgow and Edinburgh, served by two Boeing 737 aircraft, to one that offers 125 routes from 39 European airports, operating 72 aircraft (November 2003). The phenomenal growth of EasyJet was boosted by its merger with Go-fly in August 2002, making the combined company Europe's Number 1 low cost airline. In October 2002, the airline signed a deal to purchase 120 Airbus, which will facilitate the airline's ongoing growth strategy. During the financial year to 30 September 2003, the company reported pre-tax profits of Ã¯Â¿Â½.0 million on a turnover of Ã¯Â¿Â½2 million and carried...