Airline deregulation has had a dramatic impact on air transport operations in Europe over the last decade while at the same time, technological developments have altered the economics, size and range capabilities of commercial aircraft. Low-cost airlines represent the most notable new business model to have come into prominence in the last few years and these have proved amazingly resilient in the downturn following 11 September 2001 and through recent fuel price hikes and security scares, which saw many traditional airlines1 losing large sums of money. For a general review of the market after this event, see Alderighi and Cento (2004).