Loading

Europe's non-scheduled airlines in long-term structural decline, but Thomas Cook, TUI evolving

Analysis

The market for non-scheduled (charter) passengers in the UK and across Europe is in structural decline and this appears to be confirmed by recent data from the UK Civil Aviation Authority. The main beneficiaries have been the low-cost carriers as holiday-makers have developed the habit of assembling their own self-made package of flights, hotels, car hire and other services. Nevertheless, there is still a role for integrated tour operators, particularly for specialist, long-haul and other niche holidays. This is illustrated by TUI Travel's recently reported expectation of a 10% increase in profit for FY2013.

However, neither TUI Travel nor Europe's other major listed tour operator, Thomas Cook, has any plans to expand its fleet and Thomas Cook has even indicated that it is considering an asset light model, making more use of third party capacity. The Thomas Cook group continues to focus on its restructuring, an important element of which is its recent decision to integrate its four airlines into one. This could also be a precursor to selling its airline eventually as the travel companies focus on their distribution and destination management skills.

Read More

This CAPA Analysis Report is 1,862 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More