Ryanair announced (28-Feb-2013) plans to reduce its London Stansted Airport traffic by 9% over the coming year from 12.5 million to 11.4 million. The airline's move came following Ferrovial and BAA announced 6% increase in fees from Apr-2013 despite Ferrovial and BAA selling London Stansted Airport to Manchester Airport Group (MAG). MAG is to take over the airport by the end of Mar-2013. Ryanair called on the UK Civil Aviation Authority (CAA) to investigate the charge and called on Ferrovial and BAA to reverse the price increase. [more - original PR]
Ryanair to reduce London Stansted traffic by 9%
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Jet2.com steps on Ryanair's toes as it starts its first Southern England base at Stansted
Jet2.com is to establish London Stansted Airport as its ninth UK base in spring 2017. This will be the first base in the South of England for the Leeds-based airline with proud roots in the North, and will coincide with the launch of its previously announced new base at Birmingham. The LCC, owned by Dart Group PLC, believes that "Stansted has great potential for our holiday business", serving the populations of North and East London and the East of England.
Stansted airport is dominated by Ryanair, Europe's largest and lowest cost LCC, which prices at a 62% discount to Jet2.com. Although Jet2.com competes with Ryanair at all its other bases, nowhere does the Irish airline have the same dominance as at Stansted. Dart Group manages its airline as an integrated division with its package holidays business, which generates 40% of the airline's ticket sales. This gives Jet2.com some protection from pure price-based competition for seats.
Nevertheless, Jet2.com will find Ryanair a formidable competitor at Stansted, especially as Ryanair looks to increase its own sales of integrated leisure products through its website and app through partnerships with travel suppliers.
Jet2.com: seats at new Stansted base in summer 2017 exceed the entire network growth in summer 2016
Jet2.com has provided details of the routes that it plans to operate at the new London Stansted base that had been already announced by the LCC's parent Dart Group. From the start of the summer 2017 schedule Jet2.com will serve 21 European leisure destinations from Stansted. This will continue the airline's strong dependence on the summer season.
Jet2.com's move into Stansted will it bring it into head-to-head competition with Europe's biggest and lowest cost LCC – Ryanair. That much was clear from the moment that the Dart Group announced the establishment of the base at Stansted, and it was highlighted in a previous CAPA analysis.
The route details allow greater analysis of the competitive landscape that Jet2.com will face. By entering the London market it will not only be locking horns with Ryanair, but it will also be facing city pair competition from almost every other significant LCC and charter airline that operates from the UK. The new seat capacity that Jet2.com will deploy from its first base in the south of England will be more than its network-wide seat growth in summer 2016, making this a highly significant move for the airline.