CAPACITY rises from the major operators are showing signs of levelling out following huge growth in recent years.
Latest figures from the Civil Aviation Authority’s Air Travel Organisers’ Licence Business report showed an overall 11.3% increase in passenger numbers in the year to March 1999, just a 1.1 percentage point rise on the previous year.
This compares with a big jump of 6.9 percentage points from March 1997 to March 1998.
CAA head of licensing Helen Simpson said that the drop reflected the economics of the last year.
“We saw a levelling off in March and when put together with last September’s renewals, we are looking at a flattening of capacity increases,” said Simpson.
“Growth may pick up now the war is over in Kosovo, but it will depend on economics and currency.”
The figures show a massive increase in capacity for Sunworld with licensed passenger numbers up by 107% to 2.7m at June 1999 but this is due to Flying Colours being included in Sunworld’s figures for the first time.
The launch of Virgin Sun is reflected in Virgin’s licensed numbers – up by 47% to 369,000 at June 1999.
Of the big four, only First Choice dropped backed with a 2% reduction in the numbers it is licensed to carry. Thomson’s capacity rose 7% to 4.5m and Airtours’ is up 4% to 3.1m.
The increases mean the four largest operators now account for 57% of passengers licensed at June 1999, compared with 51% last June.
“This just shows how big the key companies are getting,” added Simpson.
The concentration of capacity in the top-10 groups has increased from 64% in June 1998 to 69%.
Meanwhile, ATOLBusiness shows that 9.6m passengers in the winter season, and 25.5m in the full year were protected by ATOLs. Average prices for the winter season were slightly down on last year.