3 ms·

I wonder why deregulation within the EU led to such different results than the US? The article makes a point about how there were many mergers in the US which

I wonder why deregulation within the EU led to such different results than the US? The article makes a point about how there were many mergers in the US which probably has reduced competition. However, this doesn't explain the fact that in the EU it has been newcomers like Ryanair and Easyjet that have really made the big changes.

corford 10y ago
I don't know enough about the US market to have an informed opinion, though there are a few differences I'm sure play a part: 1. Lots of different languages and cultures in the EU make it easier for startup airlines to quickly grow from their local base. So, for example, you see WizzAir and BlueAir competing successfully with Ryanair and Easyjet in Eastern Europe. Transavia from the Netherlands, Norwegian from Norway, Vueling and Volotea from Spain, Germanwings/Eurowings from Germany. 2. The population distribution in Europe lends itself ideally to the LCC model (point-to-point networks and sector times under 5 hours). We have lots of regional cities with sufficient populations to warrant basing a few aircraft and opening up profitable routes. That's why Europe has the densest regional/secondary route network in the world. 3. The LCC explosion really started in the early 2000's (despite Easyjet first flying in ~1995 iirc). It exploded thanks to a perfect storm of airspace liberalisation, cheap aircraft leases 'post 9/11', widespread internet adoption (so LCCs could cut out travel agents and GDS fees) and booming EU economies fuelling consumer demand for flights and travel. The open question is whether or not Europe will see consolidation within the LCC market but I personally don't think it will any time soon. LCC passenger count is still growing at ~6%/year.