ABSTRACT
Within continental Europe the effects of airline deregulation have been limited. Many of the densest international city-pair markets in continental Europe remain entirely in the hands of the respective flag carriers. By summer 2001, while passengers travelling to Barcelona from Amsterdam, London and Milan had experienced an increase in the number services offered, those flying from Frankfurt or Paris direct still had only the two flag carriers from which to choose. In 2001, easyJet began operating from a new base at Amsterdam, as did Ryanair from Charleroi. Aside from the considerably lower fares available to the travellers willing to return the following week, price competition has also been evident between national airlines for those passengers willing to travel via an intermediate point. By accepting an indirect routing with a flag carrier, it is often possible to get a lower fare than would be available from a low cost carrier.
