Is the golden age of low cost travel is over?

Is the golden age of low cost travel is over?
We have all witnessed FR flights are becoming more expensive due to the economic crisis but will this be the demise
of no thrills airlines.

A former Ryanair director has rung the death knell for budget airlines, claiming the days of low cost travel are over.

Tim Jeans, former commercial director at the Irish airline, said the golden age for 'low, low fares' is coming to an end.
He blamed escalating fuel costs, increased Air Passenger Duty and so-called green programmes like the Emissions Trading Scheme, for impacting on airline profits.

Talking about whether the 'golden era of air travel' was over, Mr Jeans said: 'The only thing that can happen is fares will go up and passengers go down. The vicious circle of decline in our industry will start.'
APD has increased twice in two years and the latest jump in November 2010 saw some long haul flight taxes increase by as much as 55 per cent.
Britain now has the highest flight tax charges in the world, which is expected to have a huge effect on travellers, particularly families.
And the ETS, a new Europe-wide scheme which assigns carbon quotas to airlines, meaning they must pay for further allowances, will also increase costs.
Mr Jeans' comments come as BA and Iberia passengers have been warned they may have to pay higher fuel surcharges as a result of the political upheaval in north Africa and the Middle East.

Willie Walsh, the chief executive of International Airlines Group, which represents the merged carriers, said they are monitoring the situation to see whether increased fuel prices will have to be passed on to customers.
Mr Walsh said: 'We are keeping the situation under review and we will adjust the fuel surcharge if we think it's necessary.
'There has been an increase in the volatility of the fuel prices over the last few weeks. It is likely that increases will be seen in the market and this will affect all airlines and will be a challenge to the industry.'
Mr Walsh even went as far as to admit that the airlines would consider changing 'capacity plans' if necessary, meaning flying programmes could potentially be cut back.
The price of oil reached a two-and-a-half year high last week, at $120 a barrel, as concerns were raised about the effect a restricted supply of oil from Libya could have on the world.

A former Ryanair director has rung the death knell for budget airlines, claiming the days of low cost travel are over.
Tim Jeans, former commercial director at the Irish airline, said the golden age for 'low, low fares' is coming to an end.
Talking about whether the 'golden era of air travel' was over, Mr Jeans said: 'The only thing that can happen is fares will go up and passengers go down. The vicious circle of decline in our industry will start.'

Mr Jeans seems very pessimistic.
What does he say ?
One : the age of low, low fares is coming to an end. That is right : we probably will never see 0,01 euro flights again.
Two : decline in the industry (of air travel) will start. In the industry of air travel, it may well be that some will decline - those that have the highest cost base.
Three : it is the death knell for budget airlines. This is not sure at all, in fact one doesn't see why budget airlines would die before the high-cost airlines.

Mr Jeans is a former Ryanair director. It would be interesting to know why he is no more a Ryanair director.
Besides, Mr Jeans never cites Ryanair in his demonstration.

I don't believe so !!!!!! it's my opinion

atoutprix wrote:Mr Jeans is a [i]former Ryanair director. It would be interesting to know why he is no more a Ryanair director.
Besides, Mr Jeans never cites Ryanair in his demonstration.

Just for your information: Tim Jeans left Ryanair in 2002 to work for low cost airline My Travel. Tim Jeans did so because My Travel was/is based in Manchester, and that is the place where his family lives. It was mainly for personal reasons.

In my opinion, somebody having left Ryanair for MyTravel cannot claim to have a sure vision of the future.

atoutprix wrote:In my opinion, somebody having left Ryanair for MyTravel cannot claim to have a sure vision of the future.

A failed Airtours - Manchester based uk, became My Travel - Rochdale based.... who have now merged with Thomas cook to survive must have gone to the same school as those from Danair and flying colours.

My golden age of no thrills is over... what £9 per flight might only take one every two months now.

"Airliner World", march 2011, page 9 :
"The Monarch Group has appointed Kevin George as the Managing Director of Monarch Airlines, following the departure of Tim Jeans, who is leaving to pursue opportunities outside the Group."

He's is everywhere so his opinion is useless...in a few days there will be an article written by Tim Jeans to say that Monarch is over