European Cockpit Association ‘Piloting Safety’ UPHEAVAL IN THE EUROPEAN SKIES Low Cost Carriers in Europe: Economic Data, Market and Pilot Demand Forecast Upheaval in the European Skies Low Cost Carriers in Europe: Economic Data, Market and Pilot Demand Forecast Second edition, June 2006 EUROPEAN COCKPIT ASSOCIATION Upheaval in the European Skies Low Cost Carriers in Europe: Economic Data, Market and Pilot Demand Forecast Published by EUROPEAN COCKPIT ASSOCIATION (ECA) Layout editor: Aki Karkkainen Printing history: Sept. 2002: First edition June 2006: Second edition @ EUROPEAN COCKPIT ASSOCIATION Rue du Commerce 41 B-1000 Brussels Belgium Phone (32 2) 705 32 93 Fax (32 2) 705 08 77
[email protected] http://www.eurocockpit.be Table of Contents Introduction v CHAPTER 1 THE BUSINESS MODEL MIGration 2 CHAPTER 2 Economic Data, Market and Pilot Demand Forecast 5 Preface 5 1. Methods and Sources Used 5 2. Definitions: What is a Low-Cost Carrier, or is it a Low Fare Airline? 6 3. Where Are The LCCs’ Passengers Coming From? 9 4. How Do The Traditional Airlines React? 10 4.1. Charter Carriers 11 4.2. Regional Carriers 13 4.3. The Full Service Carriers 13 5. Business Model Migration 15 6. Low Cost Carrier Cost Advantages 16 6.1. Possible cost advantages of a core LCC in relation to typical FSCs 16 6.2. What is the approximate cost reality in today’s LCC market? 17 6.3. (Flight) Crew Cost Savings in LCCs and LCC Operations 19 6.4. Conclusions 23 7. Economic Data Comparison 24 8. The Fuel Trap 25 Low Cost Carriers in Europe EUROPEAN COCKPIT ASSOCIATION i 9.