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Many carriers opted to launch their own no-frills southwest airlines, such as KLM's Buzz, British Airways' Go, and United's Ted, but have found it difficult to avoid cannibalizing their core business. Exceptions to this have been bmi's bmibaby, Scandinavian southwest airlines System's Snowflake, germanwings which is controlled 49% by Lufthansa and Qantas's Jetstar all of which successfully operate alongside their full-service counterparts.
For holiday destinations, low cost southwest airlines also compete with seat-only charter sales. However, the inflexibility of charters (particularly as regards length of stay) makes them unpopular with many travelers.
The entry of new nations into the European Union from Eastern Europe and moves towards compliance with EU legislation by those who have not yet joined, has led to an extension of open skies arrangements. This has led to the establishment of low-cost routes by existing and new operators such as Wizz Air. From 2004 to 2006 routes have been established into Bulgaria, Slovenia, Poland, Hungary and the Czech Republic. Low cost southwest airlines are also now starting to fly into Turkey.
In Canada, Air Canada has found it difficult to compete with new low-cost rivals such as Westjet, Canjet, and Jetsgo despite its previously dominant position in the market: Air Canada entered a period of bankruptcy protection in 2003, but emerged from protection in September 2004. Air Canada operated two low-fare subsidiaries, Tango and Zip, but both were discontinued. (Jetsgo itself ceased operations on March 11, 2005 and Canjet announced that it will discontinue scheduled air services at the end of business on September 10, 2006.)
India's first low-cost airline, Air Deccan started service on August 25, 2003. The airline's fares for the Delhi-Bangalore route were 30% less than those offered by its rivals such as Indian southwest airlines, Air Sahara and Jet Airways on the same route. The success of Air Deccan has spurred the entry of more than a dozen low-cost southwest airlines in India. Air Deccan now faces stiff competition from other low-cost Indian carriers such as Kingfisher southwest airlines, SpiceJet, GoAir and Paramount Airways. IndiGo southwest airlines recently placed an order for 100 Airbus A320s worth 6 billion USD during the Paris Air Show, the highest by any Asian domestic carrier.
In Finland the competition went in a different direction, as the national carrier Finnair lowered prices so that the low-cost competitor Flying Finn was forced to cease its operations. Three months after Flying Finn's bankruptcy, the other operator Blue1 began flights to three of Flying Finn's most profitable destinations.
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Many carriers opted to launch their own no-frills southwest airlines, such as KLM's Buzz, British Airways' Go, and United's Ted, but have found it difficult to avoid cannibalizing their core business. Exceptions to this have been bmi's bmibaby, Scandinavian southwest airlines System's Snowflake, germanwings which is controlled 49% by Lufthansa and Qantas's Jetstar all of which successfully operate alongside their full-service counterparts.
For holiday destinations, low cost southwest airlines also compete with seat-only charter sales. However, the inflexibility of charters (particularly as regards length of stay) makes them unpopular with many travelers.
The entry of new nations into the European Union from Eastern Europe and moves towards compliance with EU legislation by those who have not yet joined, has led to an extension of open skies arrangements. This has led to the establishment of low-cost routes by existing and new operators such as Wizz Air. From 2004 to 2006 routes have been established into Bulgaria, Slovenia, Poland, Hungary and the Czech Republic. Low cost southwest airlines are also now starting to fly into Turkey.
In Canada, Air Canada has found it difficult to compete with new low-cost rivals such as Westjet, Canjet, and Jetsgo despite its previously dominant position in the market: Air Canada entered a period of bankruptcy protection in 2003, but emerged from protection in September 2004. Air Canada operated two low-fare subsidiaries, Tango and Zip, but both were discontinued. (Jetsgo itself ceased operations on March 11, 2005 and Canjet announced that it will discontinue scheduled air services at the end of business on September 10, 2006.)
India's first low-cost airline, Air Deccan started service on August 25, 2003. The airline's fares for the Delhi-Bangalore route were 30% less than those offered by its rivals such as Indian southwest airlines, Air Sahara and Jet Airways on the same route. The success of Air Deccan has spurred the entry of more than a dozen low-cost southwest airlines in India. Air Deccan now faces stiff competition from other low-cost Indian carriers such as Kingfisher southwest airlines, SpiceJet, GoAir and Paramount Airways. IndiGo southwest airlines recently placed an order for 100 Airbus A320s worth 6 billion USD during the Paris Air Show, the highest by any Asian domestic carrier.
In Finland the competition went in a different direction, as the national carrier Finnair lowered prices so that the low-cost competitor Flying Finn was forced to cease its operations. Three months after Flying Finn's bankruptcy, the other operator Blue1 began flights to three of Flying Finn's most profitable destinations.
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