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15-Oct-2015 11:17 AM

Embraer: Some European LCCs 'reaching the limit of growth' on trunk routes,

Embraer reported (14-Oct-2015) some European LCCs "are reaching the limit of growth" on trunk routes, and low density markets are becoming more relevant in their networks. Embraer observed that an imbalance between aircraft capacity and demand has led to an increase in the number of service cancellations, with carriers withdrawing from 460 markets in 2014 compared to 370 in 2011. High LCC growth rates "cannot be maintained indefinitely" according to Embraer. The manufacturer also reported that there is "one market cancelled for each market opened", down from 2007 when LCCs opened 7 times more markets than they cancelled. According to Embraer Commercial Aviation president & CEO Paulo Cesar Silva the "next frontier" could potentially be the deployment of smaller capacity aircraft as LCCs may "need to consider new strategies by accessing lower-density markets to sustain growth”. [more - original PR]

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