The low cost air transport market - Italy

The low-cost air transport market has been witnessing significant growth, spurred by a combination of global economic expansion and the burgeoning travel and tourism sector. Originating in the United States in the 1970s with Southwest Airlines, the service has seen a marked increase in popularity since the 1990s due to deregulation. A notable upward trend is forecasted, with the global low-cost airline market predicted to expand at a compound annual growth rate (CAGR) of 8.62% from 2021 to 2025, potentially reaching a valuation of around $250 billion. The growth is particularly pronounced in developing countries. In the Italian market, Ryanair leads amidst strong competition, with players like EasyJet, Wizz Air, and Volotea expanding their presence. The shuttering of Alitalia in Autumn 2021 has opened up further opportunities for low-cost carriers to capture the market share once held by Italy's flagship airline. Despite obstacles posed by the Covid-19 pandemic, the sector's growth trajectory in Italy remains robust..Growing Attraction of Budget-Friendly Skies: Trends in Italy's Low-Cost Air Travel Market The Italian low-cost air transport market has been soaring, exhibiting robust growth rates, a trend propelled by both domestic economic progress and a burgeoning travel and tourism sector. A fundamental shift occurred in the industry following a wave of deregulation that began in the United States during the 1970s with Southwest Airlines and gained international momentum in the 1990s. This market change paved the way for a new breed of airlines, offering flight options at prices significantly lower than traditional carriers. Globally, the low-cost airline sector anticipates an impressive upswing, forecasting a Compound Annual Growth Rate (CAGR) hovering around 8.62%. By the close of the period stretching from 2021 to 2025, the market valuation is expected to balloon to somewhere in the vicinity of $235 to $265 billion. Much of this expansion is spurred by the advent of low-cost carriers in developing nations, contributing to the sector's wide reach and accessibility. In Italy, the trajectory of low-cost airlines is constantly ascending, despite facing headwinds from challenges like the Covid-19 pandemic. The Irish airline Ryanair currently reigns supreme in the Italian market, with EasyJet nipping at its heels. Trailing not too far behind are Wizz Air and Volotea, both aggressively bolstering their presence by inaugurating new operational bases at various Italian airports. The dramatic conclusion of Alitalia's operation, one of Italy's flagship airlines, which shut down in the fall of 2021 after a protracted period of financial distress, has crafted an enormous void in the market. This gap has, however, opened vast possibilities for low-cost carriers to swiftly occupy the market niche Alitalia once held. The Italian low-cost air transport sector is thus on the cusp of a significant transformation, driven not only by a collective global economic recovery but also by internal shifts that have made room for more competition and diversity in the offerings available to Italian and international travelers alike..### Leading Contenders in the Low-Cost Airline Arena In the dynamic world of low-cost air travel, a few key players stand out for their aggressive strategies and expanding market presence. These airlines, with their hallmark of offering affordable travel options, have redefined the aviation landscape, particularly within Italy's buoyant market. **Ryanair: The Market Leader** At the forefront of the Italian low-cost airline market is the Dublin-based Ryanair. Renowned for its cost-effective business model, Ryanair has become synonymous with budget travel across Europe. They have cemented their position as the go-to choice for price-conscious flyers, propelled by an extensive network that spans numerous Italian cities. With a fleet that is continually expanding and a focus on operational efficiency, Ryanair capitalizes on the gap left in the wake of Alitalia's closure. **EasyJet: The Orange Innovator** EasyJet, flying its iconic orange-liveried aircraft, is another significant entity in the low-price travel sector. Known for its customer-centric services and competitive pricing, EasyJet has established itself as a favorite among leisure and business travelers alike. With a strategic presence in key Italian airports, EasyJet maintains a robust route network and is an influential force in shaping the market trends. **Wizz Air: The Central and Eastern European Challenger** Wizz Air, with its roots in Central and Eastern Europe, is making headway in the Italian low-cost aviation market. They have earned recognition for their ultra-low fare offerings and fast-growing base of operations. With their continued territorial expansion and the inauguration of new bases within Italy, Wizz Air is steadily carving out a significant market share. **Volotea: The Regional Connectivity Advocate** Lastly, Volotea, which has found a niche in connecting regional and mid-sized European cities, is an essential piece of the low-cost airline puzzle in Italy. Their emphasis on underserved routes has opened up new travel possibilities for customers, often facilitating direct connections between cities that previously lacked them. As they grow and intensify their presence, Volotea is poised to benefit from shifts in the market dynamics. Together, these airlines form a competitive and diverse marketplace, energized by the continuous evolution of travel preferences and regulatory landscapes. They are not just transporting passengers from point A to point B but are actively driving economic growth, fostering tourism, and making air travel more accessible to the masses. The closure of Alitalia has undeniably created a vacuum, but these low-cost carriers are swiftly and strategically maneuvering to fill

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 19/11/2021

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