ADAM HARRIS

With airlines going under or making huge losses in the wake of September 11 only low-cost carriers seem to be doing well. The tragedy in the UShas sped up a process that was inevitable

ADAM HARRIS

Low-cost travel is more than merely a phenomenon and undoubtedly has a strong future in the newly redefined aviation industry.

Recent events, combined with changing business practices and economic pressures, mean more people than ever are opting for low-cost travel.

Over the past few yearsbudget airlines have changed the face of aviation. In Europe, they have challenged existing carriers and made European travel more affordable than it’s ever been, as well as giving access to new and previously unexplored areas.

This has opened Europe up to an entirely new market, forever changing the attitudes and expectations of air travellers who are now reassessing their travel options. Short-haul air travel is no longer just for the well-heeled and the market continues to grow each month.

One of the main reasons for for the current boom in the budget airline industry is the threat of global economic downturn. Businesses are cutting costs and one of the easiest ways of reducing overheads is by reassessing travel. Low-cost airlines are more cost-effective than traditional business carriers and, in Buzz’s case, the level of service is not compromised.

The events of September 11 have crystallised a process which had been ongoing since the introduction of low-cost operations in Europe.

The new, lean airlines have squeezed traditional carriers on price and the ensuing battle has been unprofitable for traditional carriers, which have slashed costs to be competitive. The tragedy of September 11 hastened decisions which would have been made regardless.

The cost-cutting exercise has led to a dramatic reduction in capacity across Europe and it seems only low-cost airlines have the strength and flexibility to seize the huge opportunities that now exist to and within mainland Europe. Buzz, for instance, is reviewing its schedule to assess the impact of Finnair withdrawing from its Gatwick-Helsinki route and Lufthansa withdrawing from Stansted-Frankfurt flights.

Ultimately the figures tell the story. Buzz has reported revenue growth of 46% in the first six months of the fiscal year, including a 33% year-on-year revenue increase for September.

The future of European aviation is low-cost and Buzz will shortly be announcing a number of new routes that will help it maintain this growth.