Most experts look for shakeout among low-fare carriers

09/22/2008 | Aviation Week & Space Technology

Experts say low-fare airlines will likely be hurt more than legacy carriers by high fuel prices as short-haul flights become more expensive to operate and aggressive growth becomes harder to maintain. From Giovanni Bisignani, director general of the International Air Transport Association, to Air France-KLM boss Jean-Cyril Spinetta, industry leaders expect a continued shakeout of low-fare carriers, especially in the U.S. and Europe. But others believe the gloom is exaggerated. "Low-cost airlines do not mean weak airlines," says Louis Gallois, chairman of Airbus parent EADS, which depends on low-fare airlines for about 30% of its total orders.

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