Loading countries and territories

Who has the right model for European aviation? Pan-European airlines lead, but models vary

Analysis

There has never really been a consensus on the question of what defines success in the airline industry. However, that now seems to be changing and opinion is coalescing around the idea that financial performance is the best demonstration of success.

Chapter 11 bankruptcy, followed by consolidation has helped profitability in North America, but this process has slowed to a trickle in Europe's more fragmented airline sector, forcing each European airline to devise its own formula.

Judging by operating margins in 2014, European Low Cost Carriers (LCCs) are enjoying greater success than Full Service Carriers (FSCs). Unit cost analysis highlights the continuing CASK gap, emphasising the imperative for cost efficiency, and also allows a more detailed strategic segmentation of Europe's airlines. Ultra-LCCs seem particularly successful, but one of the keys to LCC success is to have pan-European operations.

Read More

This CAPA Analysis Report is 5,540 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