British Airways takes the fight to Ryanair in its Stansted stronghold, for the first time ever

Premium Analysis

On 9-Feb-2016, British Airways announced the addition of London Stansted to its airport network from May-2016. It will be BA's fourth London airport after Heathrow, Gatwick and City. At first glance, this move does not appear significant. BA's four leisure routes from Stansted will make it the airline's 196th biggest airport, taking just 0.03% of its 2016 summer peak seats (week of 1-Aug-2016, source: OAG).

However, BA's decision is noteworthy for one simple reason. More than any other airport, Stansted has been synonymous with the rise of LCCs in Europe. The scourge of legacy airlines across the continent, LCCs contributed to BA's near-death experience in the years after 9/11, when it fell into loss. The most successful LCC incarnation, Ryanair, has more than 80% of seats at Stansted.

Just a few years ago, during the global financial crisis, BA was again loss-making and would not have had the temerity to enter Ryanair's stronghold. Now, emboldened on the strength of its highest ever operating margin in 2015, BA seems prepared to take on all comers. It is taking only a very small step into Stansted, but every journey starts with a step.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 3,044 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.