UK airport limitations have considerably decreased the number of passenger air transport operators since 2010 according to an industry trends report published by Swinton Business.
Restricted growth of UK’s airport sector has also adversely affected the number of businesses working in the sector from 1,065 to 820, which conveys an overall decline of 23%.
An excessively high number of small firms have been affected due to limitations placed on British airports. Acquisitions are the main form of entry into the market.
The report further highlights that the industry is highly concentrated and the four biggest players are expected to account for more than 80% of industry revenue in 2017-18.
British Airways is the UK market leader and accounts for just under half of all revenue generated from passenger air transport.
All UK airlines have been negatively impacted by rising costs and increased competition as they vie to attract more travellers by offering competitive pricing.
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Swinton Business distribution director Richard Beaven said: “Over recent years, the UK economy has faced significant challenges and uncertainty, so it is heartening to see that the nation’s entrepreneurial spirit is still strong.
“Our business trends report explores how start-up businesses make a significant contribution to the economy and have the potential to help drive future growth.
“Key industries such as the air passenger transport industry are essential to further success in the UK business scene moving forward. With the proposed third runway addition at Heathrow Airport, there is hope that the industry can turn this decline around.”
Swinton Group operates as a UK subsidiary of French mutual insurance group Covéa.