Positive Effects
The introduction of cheap flights to any area will
open it up to holiday makers, businesses and property investors.
This has occurred many times over since the boom of the cheap flight
market in the mid-1990s. A 2006 survey found that properties within
ten miles of airports served by cheap airlines saw their prices
rise by 40% more than properties served by scheduled flights alone.
So those investing in areas served by cheap airlines
tended to do well with their property investments
as more holiday makers began to visit those areas, and more businesses
sprang up to support the growing tourist numbers.
Cheap Flights - The Future
However, there is a serious risk that cheap flights
may soon be a thing of the past. With the recent global economic
downturn, several airlines have already gone bankrupt. And the rising
cost of fuel is only making it harder for the cheap airlines to
keep flight prices low. It is not unusual for an airline to discontinue
a route when it becomes unprofitable. Sometimes routes will even
be cancelled when an airline provider has a disagreement with an
airport or regulator.
There is also the environmental concern as airplane
flights burn up huge amounts of fuel - the cheaper the flights,
the more people fly, and the more people fly, the more damage is
done to the environment. So much so that some environmentalists
are calling for a halt to all cheap flights.
Negative Effects
The disappearance of cheap flights is bound to have
an effect on the areas served by them. Even in areas served by other
scheduled airlines, the fact that it is more expensive to travel
means less holiday makers will make the trip. This is bad news if
you own a property which relies on holiday lettings to pay for running
costs. Not only this, but if you own a second home purely for your
own personal use, not only could it be more expensive for you to
visit, but property prices in the area may well fall.
That is why, before making any overseas property
investments, you should always closely check the available transport
links. If the cheap flights were to stop, check to see if the area
would be served by another airline, or perhaps alternative road
and rail links would be available.
