In order to understand the drivers behind the industry, one should first understand the fact that airline industry is in fact a global business. What is more, due to the severe industry pressures, it is unlikely that these companies are the last victims of the turbulent market. The wave of bankruptcies was not really something unexpected.
In recent years many European airlines have bankrupted, including Italy’s Alitalia, Germany’s Germania and Air Berlin, the UK’s Flybmi and Monarch, Denmark’s Primera Air and Lithuania’s Small Planet Airlines, Iceland’s WOW Air, Slovenia’s Adria Airlines and so on. It seems that what the future holds for the airline industry is not really a blessing.Įven Ryanair, leading European discount airline, is facing fare pressures.Īlthough long-term innovation could breathe new life into the aviation sector, in the short term, overcapacity and rising costs threaten the viability of Europe’s low-cost airlines A number of European airlines are today dealing with severe financial pressures and troubles as costs continue to rise and competition strengthens.
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