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There are only two pan-European low cost operators where first mover advantage and scale and cost efficiencies gave the two largest players, Ryanair and Easyjet, a significant advantage. Since deregulation, of the 80 low cost operators that had begun operations, 60 had gone bankrupt.
Large number of competitors
The LCC market is highly competitive. There are more service providers than needed in both local as well as international markets. There are already many new budget airlines with Ryanair and easyJet as the famous ones, but also Virgin Express, Debonair, KLMuk, Go and Air One. However the competitive rivalry between those two groups stays moderate, while it is quite high within each group...
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