DLR and ADV release new Low-Cost-Monitor
Low Cost traffic is re-growing – after a severe drop in spring 2009. The number of routes served by Low Cost Carriers almost has reached the level of 2008. This is the outcome of the new Low-Cost-Monitor which recently has been jointly published by DLR and ADV (Association of German Airports).
In spring 2010, seventeen Low Cost airlines were operating in Germany. This is roundly two percent more flights than in the preceding year. Thus, the positive growth which is seen since the end of last year is continuing. However, there is still less dynamic than before the financial crisis: Thus, the increase of flights available amounts to more than 5 percent less than in 2008.
Six Low Cost Carriers cover 93 Percent of the Market
As measured by the number of departures in January Air Berlin is by far the major Low Cost Carrier in Germany, which is mainly due to the fact that many routes have been taken over by TUIfly. Diverse highly frequented domestic routes have already earlier been integrated into the network by the takeover of dba. As compared with the preceding year Ryanair and Germanwings have been able to increase the number of routes served by ten each.
Numerous other airlines have also been able to increase the number of routes covered. In total the six major Low Cost Carriers cover 93 percent of the LCC-market this spring. While some airlines retire from the German market, other smaller Low Cost Carriers discover new niches in the German air transport market. However, some airlines had to go into administration in the last months. By consolidation the business models of some companies merge in this market and hence complicate a distinct allocation.
In this spring, in total 495 different routes were served as domestic and cross-border traffic. These are roundly 30 routes more (+6.5%) than in in spring 2009 and almost as many as in 2008 since Low Cost Carriers started operation more than 8 years ago. No further German airports have been integrated into the Low Cost Carrier network. New destinations - particularly in South and East Europe – have been served. Strong growth is seen at the airports Memmingen and Weeze, less growth however at the airports Hamburg and Cologne/Bonn. Decrease is seen at the airports Hahn and Hanover.
Net Price Surcharges
The average fares asked by the major Low Cost Carriers vary considerably and are determined by the pre-booking period. To the net prices stated considerable surcharges in form of taxes and fees are added as well as in some cases kerosene and service charges. Thus, for an almost 10 percent random sample of all German Low Cost routes the air fares for different periods have been calculated. The average fare for a single journey determined in this way varies between 33 and 77 Euro as net price and between 37 and 118 Euro as final price in spring 2010.
In 2009 more than 53 million passengers have been served by Low Cost Carriers at 26 international and regional airports. This is a decrease by 2.2 percent as opposed to 2008. For local passenger traffic of more than 180 million passengers at international airports the market share of the LCC-segment thus amounts to roundly 29 percent. In total, the Berlin airports cover the highest LCC passenger traffic (roundly 4.8 million passengers).
Great Britain remains Country of Destination Number 1
When looking at the European market, it is revealed that Ryanair continue to extend their market leadership in the LCC-sector. More than 7,600 departures and almost 1,400 routes covered account for their biggest share of air transport ahead of Easyjet and the Air Berlin Low Cost segment. Number one of the countries of destination served by Low Cost Carriers remains Great Britain, who show by far the highest number of flights. On the next places range Spain, Italy and Germany. Meanwhile the highest traffic of Low Cost Carrier flights is seen on London-Gatwick airport, thus ousting London-Stansted to the second and Dublin to the third place. By international comparison Cologne-Bonn range as number eleven and Berlin-Tegel as number fifteen. Hence, these airports show similar values like in the last year. Meanwhile Hamburg airport ranges among the 30 major airports served by Low Cost Carriers. As to the European traffic the Low Cost Carrier market has maintained its flight service share of roundly 26 percent.
Meanwhile, there are Low Cost Carrier services in more than 40 European countries. Even the North African and Asian borders are increasingly crossed. All in all. a distinct growth of routes and a minor increase of flights is revealed.
Low Cost Monitor 1/2010 (1,12 MB)