CONTENT PREVIEW
Airports

European regionals fret as low-cost carriers move to hubs

08 May 2017
Low-cost airlines such as Ryanair - once considered insurgents in the aviation industry - are moving into the mainstream by transferring operations to large hub airports. Source: Ryanair

Budget airlines have been a crucial growth driver in international aviation, but there is a shift taking place that could undermine some smaller regional airports

Connectivity and a liberalised market are important for a healthy aviation industry. Over more than a decade, low-cost carriers (LCCs) have exploited liberalisation to become a major force in building connectivity.

By opening up point-to-point (P2P) routes from small and inexpensive airports, LCCs created new routes that full-service carriers would never have envisaged. Often they have set up alternative gateways to large cities: for example, Beauvais-Tillé Airport for Paris, Girona-Costa Brava Airport for Barcelona, and Skavsta Airport for Stockholm.

Their quick-witted actions led to high growth. According to aviation economics analyst RDC, the compound annual growth rate (CAGR) for LCCs in the last decade has been 7.1%, more than twice the 3.5% CAGR for the total global market (including all commercial flights).

LCCs also brought much-needed revenue to small and regional airports, many of which are part of the 69% of gateways worldwide that lose money, according to ACI World. Unfortunately for regional airports, that trend is reversing.

Dramatic consequences

Speaking in March 2017 during the ACI Airport Economics and Finance Conference in London, Jaap de Wit, professor emeritus of transport economics at the University of Amsterdam, described the shift from secondary to primary airports, and the inevitable impacts.

"Airlines like Ryanair and easyJet are building major networks from bigger airports. The consequences could be dramatic for secondary gateways, which have been LCC bases. You lose a base, you lose a huge network. There are several examples in Europe where this disaster is taking place," he said.

Large international airports such as Munich (pictured) are becoming more attractive to low-cost carriers because the earning potential is higher. (FMG)Large international airports such as Munich (pictured) are becoming more attractive to low-cost carriers because the earning potential is higher. (FMG)

For instance, Ryanair moved part of its operation from Brussels South Charleroi Airport to Brussels Airport in 2014. The move made sense according to Léon Verhallen, head of aviation marketing at Brussels Airport.

See related article at: http://www.ihsairport360.com/article/9001/gittens-highlights-connectivity-in-a-volatile-future

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options: ihs.com/contact



(333 of 797 words)

RELEVANT PROFILE LISTINGS

  • ABEID AMANI KARUME INTL

    ZNZ/HTZA AIRFIELD REF PT.: S06 13.20 E039 13.30 ELEVATION : 54' 16m CFR : 9 MAX RWY LENGTH : 9,865' 3,007 m General Information SURFACE : Rwy 18/36, 9,865' 3,007 m, width 148' 45 m, asphalt, PCN 42 F/A/W/T. ADDITIONAL RUNWAYS : None. RUNWAY LIGHTING : Rwy 18: LIRL, SALS, PAPI.Rwy 36: LIRL, SALS,

  • AIR FORCE BASE WATERKLOOF

    WKF/FAWK AIRFIELD REF PT.: S25 49.48 E028 13.21 ELEVATION : 4940' 1506m CFR : 0 MAX RWY LENGTH : 11,000' 3,353m General Information SURFACE : Rwy 01/19, 11,001' 3,353 m, width 148' 45 m, ashphalt. ADDITIONAL RUNWAYS : Rwy 06/24 6,299'1920 m width 148'45 m, asphalt NAVIGATION AIDS : VORTAC

  • AL AHSA INTL

    HOF/OEAH AIRFIELD REF PT.: N25 17.07 E049 29.06 ELEVATION : 588' 179m CFR : 0 MAX RWY LENGTH : 10,039' 3,060m General Information SURFACE : Rwy 16/34, 10,039' 3,060 m, width 148' 45 m, asphalt NEAREST TOWN/CITY : Al-Ahssa (15 km). AIRFIELD OPERATOR : Al-Ahssa Airport, Hofuf 31982. PHONE : +966

  • BENINA INTL

    BEN/HLLB AIRFIELD REF PT.: N32 05.49 E020 16.10 ELEVATION : 433' 132m CFR : 0 MAX RWY LENGTH : 11, 732' 3,576 m General Information SURFACE : Rwy 15R/33L, 11, 732' 3,576 m, width 148' 45 m, asphalt. ADDITIONAL RUNWAYS : Rwy 15L/33R, 11, 732' 3,576 m, width 148' 45 m, asphalt. NEAREST TOWN/CITY :

  • CAM LY DALAT

    None/VVCL AIRFIELD REF PT.: N11 56.34 W108 24.54 ELEVATION : 4937' 1505m CFR : 0 MAX RWY LENGTH : 4,560' 1,390 m General Information SURFACE : Rwy 10L/28R, 4,560' 1,390 m, asphalt NAVIGATION AIDS : NDB (ID DL, 385 kHz). FREQUENCY : 118.3 MHz. ALTERNATIVE NAME(S) : Dalat. NEAREST TOWN/CITY :

ADVERTISEMENT

Industry Links

IHS Airport 360 is not responsible for the content within or linking from Industry Links pages.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT