Greece’s regional airports are understood to be enjoying an influx of European LCC traffic (Kathimerini/Balkan Business News Correspondent, 03-May-2011). The Greek government has removed all airport charges from regional Greek airports for the rest of 2011 in a bid to improve tourism, a major export sector. Athens has reported a decline in LCC traffic for the peak summer period.
LCCs avoiding Athens, heading for regional airports
You may also be interested in the following articles...
Scoot selects Athens as first route in Europe; head to head against intense Gulf competition
Singapore Airlines' (SIA) medium/long haul low cost subsidiary Scoot has confirmed Athens as its first European destination. Scoot plans to commence four weekly flights between Singapore and Athens in Jun-2017, using 329-seat Boeing 787-8s.
Scoot will need to rely heavily on connections beyond Singapore, particularly to Australia, to make the route viable. Australia has a large Greek diaspora. Scoot will not face any LCC competition from Australia or Southeast Asia to Greece but will need to overcome aggressive competition from Gulf carriers – something that full service Singapore Airlines has struggled with. But Scoot's entry pricing is very aggressive.
High load factors will be required to offset low yields but Scoot could struggle to maintain high load factors on a year-round basis, given the seasonality of the Athens market. Scoot could face similar challenges in the other European markets that it is preparing to launch in 2017.
Uncertainty, unpredictability – and unprofitability? – in 2017
Uncertainty usually spells bad news for economic growth, for business and discretionary spending and, in turn for airlines. There is plenty of uncertainty in the air as 2017 gets under way.