Impact of Low Cost Airlines in the UK

A recent report published by the Civil Aviation Authority (CAA) examines the impact that no-frills airlines have had on the airline market, on passengers and on society more widely. The report called “’No-frills carriers: Revolution or Evolution?’ shows that no-frills airlines have revolutionised the short-haul airline market, radically changing the fares on offer, and the choice of airlines, airports and destinations available to passengers. Other airlines now run their businesses differently as a result of the advent of no-frills airlines,” stated CAA. “However, contrary to common perceptions, no-frills airlines appear to have had little impact on overall rates of traffic growth, and there is little evidence of any marked change to the income and socio-economic profile of air passengers.” Most of the no-frills airlines’ growth seems to have been at the expense of other carriers. Although the number of leisure passengers from all income groups has increased, the majority of this increase has come from those in middle and higher income and socio-economic groups.



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