ABSTRACT
This chapter focuses on the emerging passenger markets in the EU. The alternative is a bottom-up approach that is more intuitive but reflects the approach of carriers to the market. The full service providers seek to meet a range of market needs through radial networks and multi-configured cabins. Non-scheduled carriers have, because of their strong tie-in with the inclusive tour industry, more control over the balancing of supply and demand than do scheduled carriers. An important change in Europe has been the growth in the number of no-frills carriers – low cost airlines to use US jargon. There is a significant degree of instability in the no-frills market, in part because of the limited reserves of many of the players to meet downturns in the business cycle. Markets can be segmented by the types of service provided, which is in effect what has been done here, but they can also be segmented by type of supplier.
