EasyJet increases lead over British Airways in short haul travel
08 Jan 2011
UK budget carrier EasyJet Plc saw a growth in passenger numbers of 7.9 per cent to 49.7 million last year, which saw it increase its lead over rival British Airways Plc in European short-haul markets.
Around 2.7 times as many people flew EasyJet as the European division of British Airways, where customer numbers dropped 5.7 per cent to 18.4 million in 2010. In 2009, 2.4 times as many passengers flew Easy Jet as the European division of British Airways, according to the figures released by the discount carrier today.
British Airways cut its short-haul operations to concentrate on more profitable inter-continental routes following the onslaught of low cost competitors like EasyJet and Ireland's Ryanair Holding Plc. Ryanair yesterday posted an 11 per cent increase in 2010 passenger numbers to 72.7 million.
According to analysts, it was not long back that British Airways had a good position in short-haul and was prepared to defend it. They say the discount carriers were continuing to trade well in a tough economic environment with passengers still very price sensitive.
EasyJet and Ryanair are increasing their lead over British Airways in Europe even as they cut back on their own fleet- expansion plans in a maturing discount market, according to analysts. Even with that, however, EasyJet said this week that it will add 15 more Airbus SAS A320 planes worth $1.1 billion as it sought to draw more higher-paying corporate travelers.
Meanwhile, according to analysts, chief executive officer Carolyn McCall needs to retain low-cost focus of EasyJet.
