EasyJet's stronghold at Gatwick Airport is facing a fresh attack from rival no-frills airlines.

Ryanair and Bmi Baby have applied for extra slots at the airport.

Earlier this year, British Airways slashed its fares to more than 30 European destinations by up to a third, partly in response to easyJet's domination of the market.

Now two of easyJet's low-cost rivals look set for a double-pronged attack.

A spokesman for Bmi, which only launched at Gatwick in April, hinted it was preparing to increase its market share.

He said: "As Gatwick is our newest base, we are very keen to expand but at the moment we don't want to go into details."

The Derbyshire-based airline, which flies to Cork and to Prague from Gatwick, is relying on competitive pricing to help it expand.

The carrier has already sparked a fare war with easyJet, with both competing to provide the cheapest return flights from Gatwick to Prague.

So far, Ryanair has restricted its Gatwick operations, saying the airport's relatively high landing charges did not fit its low-cost business model.

The airline has declined to comment on its Gatwick plans but said it was in discussion with more than 50 European airports with a view to expand.

EasyJet's operation has mushroomed since it began at Gatwick three years ago. It now has 13 aircraft based there and flies to 22 destinations. That figure will increase to 25 next month when seats go on sale for three more routes to Murcia, Rome and Venice.

The new routes means easyJet services at Gatwick have grown 40 per cent year-on-year.

But the revelation of the Ryanair and Bmi challenge will worry easyJet investors, who have been spooked by two recent profit warnings.

Wednesday June 30, 2004