A successful example of a European no frills airline is easyJet. Stelios Haji-Ioannou (Greek) founded the company in 1995. It is based on the low-cost, no-frills model of the US carrier Southwest. The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, more people will fly. Traditionally airline concepts are based on the assumption that airline traffic grows in …showed first 75 words of 442 total…

…showed last 75 words of 442 total…by the financial benefits of this deal". easyJet argues that both Boeing and Airbus aircraft have broadly similar characteristics but that a wider aisle on A319 will make it quicker to embark and disembark, that it has an extra seat on board (150 vs. 149) and that overall the A319 will lower costs by about 10% compared to the current mix of aircraft, which will contribute to lower ticket fares. (See appendix 1 for Stelios Haji-Iannou's other easyGroup enterprises).