Well in Europe there are still gaps, Spain, Portugal, Austria, and certain places in Germany for example. However, my tip for the future is Eastern Europe as the next growth area for the low cost airlines. Next year, 2004, there is going to be a “Big Bang” of activity in this region. Why? -Because in May 2004 Slovakia, Slovenia, Poland, Lithuania, Czech Republic, Estonia, Hungary and Latvia all join the European Union. This will allow massive growth because theoretically the EU has open skies, as soon as you step out of this boundaries of the EU then the interests of the flag carrier intervene making it difficult for anyone to get in. But this all should change when these Eastern European states join the EU, thus allowing growth in the market.
Secondly the APD is four times higher if you step out of the EU so making money on these types of routes is very hard until EU membership is granted.
I can guarantee that you will see growth here with the likes of Easyjet and Ryanair ready to pounce, the latter airline having already apparently bought an airport outside of Prague . Then you have all those nice German loco’s getting closer to the boarders. Personally I don’t blame them, Tallinn, Bratislava, Riga just like miniature Prague’s, look at their city tourism industry and see what these cities could be like. Though where this leaves Czech, Malev, LOT etc is another question,
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