LOW COST AIRLINE BUBBLE BURST

4 March 2003


Buzz closures spell end of low cost airlines?

Buzz route closures a sign that no-frills growth is slowing fast The "no-frills" bubble has burst, according to the chief executive of the Air Transport Users' Council (ATUC).

Simon Evans, speaking to the Daily Telegraph's travel section following the news that Ryanair is to close down many of Buzz's routes after taking its rival over, said we have seen "the strongest signals yet" that the rise of no-frills flying could be coming to an end - or at least slowing down fast. He told the newspaper:

Prices dropped further to fill seats
"The bubble had to burst at some point. After an extraordinary growth period the market has matured, particularly in the UK." As well as the Ryanair / Buzz story, there have been various other signs that Evans is right; EasyJet last week admitted it has dropped its fares by six per cent in order to fill more seats, and while lower fares are generally seen as good news for passengers, they are not likely to last into the summer, according to Evans.

[Source - Travel Mole]

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