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Everyone in the tourism industry – from travel exhibition organisers to travel agents – is being affected by the no-frills airline revolution in Europe. In just a few short years, the new breed of airline has made air travel possible for millions of people who couldn’t previously afford it, and grown to the point where the largest could overtake even the major national carriers.
Fiona Jeffery, exhibition director of World Travel Market in London, comments: “No-frills airlines are opening up many new markets, and that gives exhibition organisers the opportunity to increase exhibitor participation. This is probably the most revolutionary thing to happen to the industry for a long time.
“Central and Eastern European countries in particular are using these airlines to their advantage. Increased freedom of movement means many more people have joined the international jobs market.”
Many more people are travelling on no-frills routes, and many national carriers have had to adapt to stay competitive. Many national carriers have slashed their fares and some now charge for on-board food, while still having the high costs of operating from major airports.
The no-frills concept was pioneered by Southwest Airlines in the US. The basics are that fares are lower depending on how far ahead you book; tickets are sold on the Internet rather than through Global Distribution Systems, with no commission for travel agents; that food and drink must be paid for; and that, where possible, alternative and cheaper airports are used. Most no-frills routes are of a maximum two hours’ flying time, to maximise aircraft utilisation.
Irish airline Ryanair was the first to adopt this approach in Europe, taking advantage of the liberalisation of air services within the EU to set up bases outside its home country. Services from London Stansted started in 1997 and it is now the largest Ryanair hub, and it is now developing routes from Frankfurt (Hahn), Brussels (Charleroi), Stockholm (Skavsta), Glasgow (Prestwick) and Barcelona (Gerona). The fact that some of these airports are far from the cities Ryanair claims to serve has caused friction with rival airlines.
EasyJet started in 1995 from London Luton and now operates from many other UK airports including Gatwick and Stansted, having bought former British Airways subsidiary Go. Expansion is now concentrating in Continental Europe, especially at Geneva, Paris (Orly and CDG) and Berlin.
These airlines have become huge. Ryanair carried 24.5 million passengers in the year to June 2004, with EasyJet carrying 22.8 million. But the no-frills revolution, which started with airlines in Ireland and the UK, is now spreading throughout Europe.
Air Berlin has become a major no-frills airline in Germany, especially on routes to Spain. Italy, Norway and Iceland all have relatively new no-frills carriers, but the main focus now is switching to Central and Eastern Europe following the accession of several countries to the EU in May.
Low-cost air travel is now available to people in Hungary, the Czech Republic, Poland and Slovakia, with many new airlines being formed which all follow the no-frills model.
SkyEurope was the first, and now operates 15 routes from Bratislava in Slovakia – a country which did not even have its own airline before. SkyEurope also operates 10 routes from Budapest and seven from Warsaw, and aims to add other bases.
Wizz Air is brand new, operating its first flights in May with eight routes from Budapest and eight from Katowice in Poland. It plans rapid expansion having raised 40 million euros in funding from US-based Indigo Partners.
Air Polonia has also become a major carrier in Poland, serving most airports including Warsaw, Katowice, Poznan and Gdansk.
Some commentators are warning that many no-frills airlines will not survive, or will have to cut back. There have already been some failures, but for the time being the public are getting great deals from more cities than ever before.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
