Is the European low-cost airline sector all set for consolidation ?
The number of low-cost airlines in Europe is being projected to come down as experts feel 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, 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
