Full article in JPG format: page 36/37 & page 38/39
For several years Europe’s network carriers have been fighting a losing battle on two competitive fronts, pinned down by both the lower costs of no-frills rivals at home and the superior products of full-service rivals in the Middle East.
Though the continent’s flag-carriers are beginning to adapt, they have already relinquished huge traffic volumes to the market leaders of both new airline breeds: Ryanair and easyJet in the low-cost camp; and Emirates, Etihad and Qatar Airways in the Gulf. The unwillingness of European governments to foster healthy competition in their capital-city hubs has only accelerated this transfer of power.
And now, in a further blow to their fortunes, yet another competitive dynamic is emerging on the fringes of the continent...
