Showing posts from January 11, 2012

2012 The Year of European Airline Consolidation ©

This year is certain to be one of consolidation in the European airline sector as the industry is continually being buffeted by events as the European debt crisis continues with record unemployment levels and austerity depressing demand across the EU, the new EU ETS Scheme took effect from the 1 st of January, and the evolving situation in the Middle East over the Iran nuclear program. These events are likely to accelerate the pace of the consolidation in the sector, as airlines grapple with rising costs and slowing demand. The cornerstone of the re-structuring of the European airline industry begun with the winter schedule, as many airlines adopted their strategies to evolve with the rapidly changing market conditions, to focus on their core market strength, which is creating new market opportunities for LCC carriers, to fill the gaps. Ryanair has first mover advantage to seize the market gaps having announced new bases in Billund as Cimber Sterling re-focuses on the domesti