Word: easyjet
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...Buzz and Basiq Air, its Amsterdam-based budget brand, in order to cut costs and streamline management. In retrospect, British Airways' exit from the low-cost business last year - when it sold Go to venture capital firm 3i for 3158 million, only to see Go be sold again to easyJet for almost four times the price - looks short-sighted indeed...
...cost airlines first appeared on the aviation scene? Travelers tisked that the low-cost carriers didn't have enough planes. They quibbled that the carriers were based at - and flew into - remote airports. They complained that their Internet booking facilities meant little customer contact. Even some of their names - easyJet, Buzz, Go - had an unsettling air of impermanence. And weren't those prices just a bit, er, too good to be true...
...grounds for optimism. Earlier this year, Ireland's Ryanair announced a 44% increase in earnings over the previous year, despite a fall in the average fare price. EasyJet has reported passenger growth of up to 43% in year-on-year comparisons. The carrier has just completed a 3590 million takeover of fellow bare-bones airline Go, once owned by British Airways. The deal marks the low-cost industry's first consolidation and makes easyJet its largest player, operating 81 routes and serving 32 destinations...
Sukhothai's airport is owned and operated by upstart regional carrier Bangkok Airways?which replicates in the air its classy style on the ground. Unlike no-frills European airlines Ryanair and easyJet, or the U.S.'s Southwest, Bangkok Airways offers perks such as hot meals and wine, even on hour-long puddle jumps?not to mention elaborate landing rites like those at Sukhothai. And the service is impeccable. The Swissair-trained staff, both on the ground and in the air, are efficient, helpful and always ready to share a smile. The attendants even remember passengers' names. "This is what flying...
...class and full-fare economy flyers, the very people who are in a position to go elsewhere." Solon expects private charter services will continue to grab big chunks of the top-end commercial market, where margins are as comfortable as a first-class seat. Meanwhile, low-cost operators like easyJet and Ryanair will siphon off budget passengers. And that's a squeeze that could keep Europe's big airlines in a tailspin...