?Will Europe’s charter carriers be replaced by ‘‘no-frills’’ scheduled airlines

Will Europe’s charter carriers be replaced by ‘‘no-frills’’ scheduled airlines?

Journal: Air Transport Management

Author: George Williams

Published: 2001

Abstract

Europe’s charter airlines traditionally have carried their passengers at significantly lower unit costs than their scheduled counterparts. The emergence of ‘‘no-frills’’ scheduled carriers with their focus on low costs has produced major challenges not only to full service providers but also to the charter operators. A comparison of charter and ‘‘no-frills’’ airlines’ operating costs indicates that while the differential has been significantly reduced, the advantage still lies with the former. The greater flexibility offered to the traveler by the latter though has seen the demise of many short haul charter services. Increasing numbers of travelers are opting to put together their own holiday  packages using the Internet. Charter airlines need to respond to this threat to their short haul markets by offering greater flexibility to their customers.

Keywords: Charter carriers; No-frills airlines; Aircraft utilisation; Labour productivity; Seat only markets

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