ABSTRACT
This chapter is a case study of Cityjet, a full-service airline serving Ireland, the United Kingdom, France, Spain, Italy, Germany and Belgium, founded in 1992. Cityjet was acquired by Air France early in 2000 and now operates as a lower-cost arm of that airline. The Cityjet case study illustrates the difficulties faced by a fullservice airline seeking to serve the deregulated European aviation market. These difficulties include airport access, the frequent-flyer programmes and predatory responses of incumbents and ticket retailing. The experiences of market entry on Dublin-London and Dublin-Brussels are examined. The responses of Cityjet and Ryanair to the post-deregulation barriers to contestability in European aviation are contrasted and the implications for full-service and low-cost airlines are examined. The continuing role of Cityjet as a lower-cost subsidiary of Air France and its value to that group is discussed.
