cheryl
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Europe's Discount Airlines 'Democratized' Air Travel. Now They're Going Belly-Up - Fortune
In 1992, the U.S. witnessed the trial of John Gotti, the election of President Bill Clinton and the devastating arrival of Hurricane Andrew on the Florida coastline, causing a then-record $25 billion in damage. Further afield, it was also the year that Prince Charles initiated the world’s most-watched break-up by separating from Princess Diana.
So, it’s only natural that the creation of something as obscure as the European Union’s Internal Market for Aviation went largely unnoticed. But the deal revolutionized travel in Europe and is now getting renewed attention as the era of cheap flights it ushered in begins to fade.
Prior to its creation, European air travel was split into a series of distinct, largely captive, domestic markets, each often dominated by a single state-owned national flag carrier such as British Airways or Air France. The Internal Market rejuvenated this low-competition, high-fare environment by replacing the patchwork of national regulations with a single set of EU rules that removed restrictions on the routes, fares, and flights that airlines could operate. For the first time ever, European airlines could fly in and out of any airport they wished and charge customers any price they wanted
In 1992, the U.S. witnessed the trial of John Gotti, the election of President Bill Clinton and the devastating arrival of Hurricane Andrew on the Florida coastline, causing a then-record $25 billion in damage. Further afield, it was also the year that Prince Charles initiated the world’s most-watched break-up by separating from Princess Diana.
So, it’s only natural that the creation of something as obscure as the European Union’s Internal Market for Aviation went largely unnoticed. But the deal revolutionized travel in Europe and is now getting renewed attention as the era of cheap flights it ushered in begins to fade.
Prior to its creation, European air travel was split into a series of distinct, largely captive, domestic markets, each often dominated by a single state-owned national flag carrier such as British Airways or Air France. The Internal Market rejuvenated this low-competition, high-fare environment by replacing the patchwork of national regulations with a single set of EU rules that removed restrictions on the routes, fares, and flights that airlines could operate. For the first time ever, European airlines could fly in and out of any airport they wished and charge customers any price they wanted