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New airlines 'face a challenge'

New companies trying to succeed in the global air transport market face tough market challenges and aggressive competition from other carriers, a consultancy firm has claimed.

A spokesperson for Ascend, a provider of information and consultancy services to the industry, said that a new operator will be seen as "the new boy on the block".

"The chances are the other guys will pick on you," he explained.

One of the most challenging factors of the industry is the fact that existing airlines have established markets and new operators have to build their business from the ground up.

While this is a substantial challenge, the Ascend spokesperson said that there are still opportunities for new companies if they adopt the right tactics.

"On the big markets, like London-New York, there certainly is enough of a corporate market and people who want to trade up," he said.

"So, if you can get your costs down, there does seem to be a market opportunity."

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