Competition versus Predation in Aviation Markets

Chapter 11The European ‘No-Frills’-Aviation Market: Current and Future Developments

Bernard Michael Gilroy, Elmar Lukas and Tobias Volpert

1. Introduction

In the course of the last thirty years the volume of global airline passengers has increased six fold. Currently some one and a half billion passengers travel by air annually. Historically, growth in the aviation industry has often been limited by restrictive governmental legislation. In recent times, however, the deregulation of the aviation industry has encouraged underlying competition among airlines.

In this innovative competitive environment new structures and strategies are emerging as reflected by the activities of the low cost carriers (LCCs) or low cost airlines, or simply 'No-Frills' ...