No-frills sector as strong as ever

Airline schedule specialists, OAG has reneged on a report that suggested no-frills flights have declined in the UK. Following complaints from easyJet OAG reviewed its calculations and found that an error had been made. Rather than a drop of 21%, the number of no-frills flights within the UK increased 10% in March when compared to the same period last year. The number of flights to and from the UK rose 18% year-on-year, and in Europe no-frills flights were up 56%. Lynne Fraser, marketing director of OAG data said: “We are grateful to easyJet for questioning the original figures. Further analysis has identified a one- off computer program error which affected the 2003 figures. We can reassure you that all 2004 figures are correct.” She added: “EasyJet continues to be one of the low cost airlines that goes from strength to strength.” Commenting on the no-frills sector in an interview with TravelMole last week, Opodo chief executive, David Scoswill said: “There will be more growth of no-frills carriers. You only have to look at their future aircraft orders to see that they are assuming growth at a huge rate. “In Germany particularly we will see a lot of growth because of the way the market is going. But in the UK I think we will also see growth, and not just from Ryanair and easyJet. “Just look to the US, where Southwest has recorded steady growth of profits year on year. The model is recession proof and terrorist proof.” OAG had previously put the decline in UK no-frills flights down to repercussions from the easyJet/Go merger which was completed in August 2002 Other data from QAG showed that worldwide flights were up 3% overall in March 2004 compared to the previous year. The largest growth was within the Pacific/Australia region, where no-frills flights grew 201% and within Asia, where no-frills flights grew 162% year-on-year. According to OAG this is due to the launch in Asia of two new carriers – Air Deccan and Thai Air Asia. The Australian no-frills market has also taken off since the launch of Virgin’s Virgin Blue and Jetstar, the Qantas offshoot. The two have been embroiled in an intense price war in recent weeks. Despite a 5% drop in flights to and from Singapore Changi airport, flights to and from Asia grew 8%, and domestic China flights grew 23%. Flights to and from the US and Canada grew 3%, with just 1% of growth in Heathrow services. Report by Ginny McGrath

Related News Stories: