Flybe: Overcapacity leading European carriers to adopt US model

    Flybe stated (06-Aug-2018) overcapacity in the aviation sector has resulted in some European carriers commencing contract operations and providing capacity to larger operators, similar to the US regional model where airlines operate under larger US airline brands. Flybe added: “An increasing aircraft order book held by airlines globally over the last decade has created a market where supply is often greater than demand – Europe is not immune to this trend. The effect has been varying levels of pressure on yields in airline markets”. The airline noted scheduled airline capacity increased 37.8% between 2011 and 2017, while passenger yields decreased 27.1%. [more – original PR]