Low cost airlines and new runway capacity?
Following today's FR order, the impending EZY order and yesterday's reports about runway capacity in London, I was wondering what the effect of this new capacity would be on London.
Taking STN, for a start: is any new short haul operator going to even think about opening new services in the face of FR (or GO)? The second runway there is effectively a Ryanair runway.
At LGW, the scene is going to be particularly interesting, with the two titans of the low cost sector doing battle: EZY and FR; BA can either withdraw or be run out of town.
Even at LHR, when the third runway comes into operation, I think EZY at least will be interested; it's a misconception that lo-cos are only interested in off the beaten track, low cost airports; it's largely because slot limits have kept them out; look at FR on DUB-LGW - a low cost carrier offering not too low fares and no doubt making a killing.
It will also be interesting to see how the Irish government and Aer Rianta reacts to the FR order; it should be clear to them now that they can either accommodate the rise of low cost carriers or they will fly (and take customers) elsewhere. The new spate of orders (will GO be next) seems to herald the beginning of a new chapter in which the lo-cos begin to pose a far more serious threat to the established carriers (and possibly airport operators) . . .