Deregulation

Deregulation of the European Union airspace in the early 1990s has had substantial effect on structure of the industry there. The shift towards 'budget' airlines on shorter routes has been significant. Airlines such as Easyjet and Ryanair have grown at the expense of the traditional national airlines.

There has also been a trend for these national airlines themselves to be privatised such as has occurred for Aer Lingus (Ireland) and British Airways. Other national airlines, including Italy's Alitalia, have suffered - particularly with the rapid increase of oil prices in early 2008.