EasyJet’s decision to buy GB Airways could mean Europe’s low-cost airlines would be effectively reduced to two carriers, according to industry analysts.
The £103.5 million buy-out of GB Airways, which has a franchise agreement with British Airways, will mean easyJet will enhance its services and expand its base from Gatwick, according to Mintel analyst Richard Cope.
“It seems to be the continuing policy to expand flights and routes, despite the fact that the market is not strong and diminishing year on year,” he said. “Ryanair said it did not expect a strong winter.”
In time the expansion of easyJet and Ryanair would mean they were the only two carriers in the Europe-wide low-cost market, Cope said. “This is part of a process, and there is only going to be two of them in time, aside from the regional airlines such as FlyBe.”
However, the new European alliance of high-speed rail companies, Railteam, would also try and compete with low-cost airlines on price and service, Cope said.