Further to my previous post this report from Janes is worth considering.
There is a big market for the low cost carriers in Eastern Europe if they can find a way to access it. Read on:
By Anthony O'Connor
It goes without saying that an expanded Europe will need greater communication links and that much of this could be served by increased air transport links. It sounds like the perfect breeding ground for some of Europe's established low-cost carriers to step in and develop these new markets as they have elsewhere in Europe. But are the ready to go east?
Some of them have already taken tentative steps to serve Central and Eastern Europe. Easyjet and the Cologne-based carrier Germanwings already operate services to Czech Republic capital Prague, and the German carrier also flies to the Hungarian capital Budapest.
These two airlines have a lot in common. They operate on a point-to-point basis serving city pairs at primary airports, and they both appear set to continue along those lines. Ryanair is the secondary airport market operator and has been fundamental in opening up some routes that never featured on the leisure market radar before the carrier started flying there.
But the Irish carrier has already decided that it will not venture into the eastern territories when the new EU members join in 2004. "At the moment we have no interest in Eastern Europe - it's very fractious," said Howard Millar, finance director at Ryanair in Dublin. "We think a lot of people will rush into Eastern Europe and lose a lot of money," he said. "Airport prices have got to come down and incomes have got to rise."
UK rival Easyjet has taken a slightly different approach. As part of a pan-European media exercise, the carrier placed tender advertisements in the national media of 10 European countries.
Of the 10 EU accession countries, Easyjet has focused its attentions on the Czech Republic, Hungary, Poland and Slovenia. But according to a spokeswoman for the airline, Easyjet is open to suggestion from any airports in Europe. "Easyjet is basically a version of British Midland. I'm sure they'll be just looking at primary airports," said Ryanair's Millar.
This kind of beauty parade is nothing new for carriers, especially at a point in the industry cycle where airports are desperate for business. Southwest, the archetype of all low-cost carriers, does exactly the same in the US.
At one stage recently, Southwest was being courted by three airports within a 100-mile radius in the state of Virginia, according to a source close to the airline. Accordingly, the carrier was able to secure the deal that it wanted, he said.
Ryanair may have been expecting a more boisterous welcome from the airports in the region, which are renowned for inflexible pricing policies. Germanwings Deputy Managing Director Andreas Bierwirth also highlighted that airport charges are definitely an issue for his carrier.
Reports coming from Eastern Europe suggest that low-cost carriers are ready to flock in once bilateral barriers, which favour flag carriers at present, are lifted.
A spokesman for Virgin Express in Brussels said the carrier has no plans to operate any services to the region while barriers remain.