Abstract
Low-Cost Carriers achieve economies of scale by deploying large, single-model fleets across an expanding set of regional bases. The addition of new bases and routes is bound by profitability and operational aspects, both posing limitations to the travel demand that can be served. We explored the evolution of Ryanair's network and discussed the factors that influence the airline's choices. We used highly detailed information on the evolution of the fleet and routes and calculated suitable indicators for the quantification of the trends. Based on these observations, we explored the implications for travel and tourism. The analysis was supported by interviews with industry experts. The main conclusion is that there is bi-directional causality between airline network evolution and travel demand.
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