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Kiss Collapses, Ryanair Expands

ryanair in cyprusAs budget travel company Kiss Flights goes into administration, stranding hundreds of tourists en route to Cyprus, no-frills airline Ryanair has decided to expand its operations to Larnaka airport, in developments announced today.

Ryanair is set to start flights to Larnaca after intensive negotiations with the Cyprus Tourism Organisation, said a spokesman for Hermes Airports.

Over the last year a spate of low-cost airlines have gone into administration amid a global economic slowdown. However, as European economies slowly recover, hopes are rising that tourism will track the recovery, say analysts.

Observers in online fora say that the new competition from Ryanair may trigger a price war, which could benefit travellers by lowering ticket fees. Local charter airline Eurocypria in particular is set to face more headwinds as the competition heats up, after it was recently forced to ask the government for a 35 million euro bailout to cover outstanding debts.

According to the BBC, 13 travel firms have collapsed in the UK this year and 33 went down last year. The BBC cited the recession, belt-tightening by travellers and the Icelandic volcanic ash cloud that threw European travel into turmoil.

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