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Old 16th Jun 2009, 15:24
  #141 (permalink)  
anna_list
 
Join Date: May 2005
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Ezy @ Stn

Easyjet's strategy for STN is an interesting question.

Last year Easyjet carried just under 20% of all passengers at STN, with Ryanair accounting for 67%. I'm struggling to think of an airport of a similar size where one carrier enjoys this level of dominance. This could raise a bit of a problem for anyone interested in buying STN from BAA.

I'm sure that STN has some strategic importance for EZY, but they have to balance this with their larger base at LTN and their recent clear preference for expanding at LGW whenever the opportunities arise.

If you look at the number of EZY flights at STN, it's clear that their priorities lie elsewhere. Last year the total number of EZY flights at STN was only marginally above the combined number of EZY and Go flights back in 2002. This year, they will almost certainly fall below that level. EZY flights at STN peaked back in 2004.

Interestingly, the reverse situation occurs at Luton, where EZY is the dominant carrier and Ryanair have achieved very little growth since 2005.

In the last couple of years Ryanair's intentions at STN have been very clear. They have launched STN - ALC, PMI, AGP, FAO and IBZ, which are all core routes for Easyjet. It will be interesting to see how much willingness EZY have for a fight on these routes. The precedents aren't great, as EZY finally gave up STN-VLC and STN-LEI last year after over 3 years of going head to head.

What will happen next? I suspect not a lot other than further frequency cuts until the economy improves. Once it does, I wouldn't be surprised to see Ryanair increase the frequencies on the routes mentioned above and launch the likes of STN-TLL, PRG and EDI. That would leave EZY with a difficult choice.

As for EZY restarting any routes that they have dropped, it seems highly unlikely. If those routes weren't making money before, it is improbable that they will do so in future. The market has already decided.

@Skipness One Echo: Spot on!
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