Michael Porter's Five Forces Model is a strategic framework by which one attempts to predict how an industry behaves, develops and responds in a competitive environment. In his own words, the concept creator offers insight; “The five forces determine the profitability of an industry because they influence the prices, costs and investments required of businesses in an industry – the elements of ROI.” The aim of this essay is to apply Porter's model to the growing European low-cost airline industry. Noting its liberalization in 1997, the European domestic airline industry is relatively immature compared to its North American equivalent. A few years from its maturity, the industry is currently evolving in an environment of intense competition. As for Europe, the pioneering adoption of low-cost air travel is largely an Anglo-Irish enterprise, but Europe now has around 50 budget airlines. The fact that this figure fluctuates almost every week testifies to the state of aggressive competition in the market. Indeed, it is precisely because the market is in a state of high growth and fierce competition that this industry is most suitable for the application of Porter's model. When considering the “threat of entry,” the evolving predicament may be most responsible for the continued dilution of an oligopoly. Traditionally, high capital requirements at entry have served to suppress competition. However, since the aviation industry has moved away from its state-sponsored beginnings, the free market has begun to provide efficient allocation. The availability of public and private venture capital has been instrumental in risk allocation. Thus, the capital required for entry has been significantly reduced. Due to the absolute cost of an aircraft; Considered in terms of percentile discounts, economies of scale constitute a significant barrier to entry. Experience, or rather lack of experience, has not proven to be as much of a deterrent to entry as might have previously been expected. Many greenfield companies were born and then prospered at the expense of shell-shocked domestic airlines. It seems that the ineffectiveness of state-influenced agencies has been shed new light. Still growing but entering a surveillance phase, the expected retaliation now constitutes a very visible barrier to entry. Once of considerable importance, but now of little importance; access to distribution channels constitutes fewer obstacles than ever before in history.