Luxair

Luxembourg opening to LCC competition with the entry of easyJet

The tiny Luxembourg market has been thrust into the spotlight by easyJet’s announcement that it plans to launch the first low-cost carrier service into the small European nation. With no domestic market in Luxembourg, national carrier Luxair relies on a short/medium-haul international network serving Europe and Africa. The arrival of LCC competition will place pressure on the flag carrier, which may find it difficult to compete with budget rivals.

Luxair, which is the only Luxembourg-based passenger carrier, currently offers 36,285 seats per week, according to data from Innovata. Western Europe accounts for about 90% of the carrier’s total capacity (seats) and all 10 of the carrier’s largest routes.

Iceland’s Grímsvötn volcano: Europe’s new airspace management approach put to the test

The eruption of Iceland’s Grímsvötn volcanco could be the acid test for EUROCONTROL and European air navigation service providers (ANSPs) and the new rules and measures put in place after the last Icelandic volcanic eruption in 2010. A little more than 13 months on from the eruption of the Eyjafjallajokull volcano, Europe’s passengers and airlines will be hoping that the reaction from Europe’s airspace authorities is much more measured than it was in 2010.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.

Ash Attack round-up of global aviation responses: LATEST from airlines, airports, industry bodies

The impact of the Ash Attack on the aviation industry has been profound - in a short space of time. CAPA estimates The Ash Attack has already affected the travel plans of 8 million passengers in Europe and around the world, causing at least USD1 billion in lost (and unrecoverable) revenue for the worldwide aviation industry. To this should be added lost ancillary revenues and the costs airlines will incur for re-routing aircraft, as well as caring for stranded passengers and stranded aircraft at various ports. The total cost for the aviation industry (airlines, airports, suppliers, freight operators, handlers etc) could be well over USD2 billion, and rising with each day of disruption.