The largest budget airline in Europe Ryanair decided to open a base at the airport of Frankfurt am main (Germany). This decision will create additional competitive pressure on Lufthansa’s German low-cost airlines.
Recently, the largest European low-cost airline announced that Zubairuev in Frankfurt two Boeing 737-800 aircraft. Initially, he plans to fly out in four directions. From all four (Malaga, Faro, Alicante and Palma de Majorca) Lufthansa serves only one. Thus, today the effects of the arrival of Ryanair at Frankfurt airport will be limited. However, a response to the actions of the Irish airline was extremely sharp. That to consequences, for TUI, Air Berlin and Etihad Airways, they may be more serious.
In the past, Ryanair has repeatedly said that the airline is not going to be based at such airports as London Heathrow, Paris airport. Charles de Gaulle and Frankfurt airport are too expensive to be serviced. After Frankfurt opened a fourth runway, there were new slots. Today, the airport is developing slowly. The reason lies in the fact that his main airline, Lufthansa, trying to cope with rising costs, for four years engaged in the reduction of the fleet.
Etihad, Air Berlin and TUI are in talks about creating a new airline, focused on tourists. In the Park is supposed to get 14 aircraft TUIfly and more than 20 aircraft, which now operates a branch Air Berlin — Niki. Air Berlin itself, the finances of which are not in the best condition, plans to stop servicing a tourist destination. According to sources in the industry, its direction Frankfurt, among other routes will get the new operator, which is now doing a TUI and Etihad. He will have to compete directly with Ryanair, particularly in the following spring-summer season, when the Irish low-cost carrier continues to increase its presence in Frankfurt.
Lufthansa CEO Carsten Spohr confirmed that in the past came to him the heads of Easyjet and Ryanair’s Michael O’leary and Carolyn McCall who proposed to establish a feeder service in the interests of Lufthansa. However, the Spurs made it clear: “Now we don’t need it”. According to him, the main task for Lufthansa to make the cost of full service areas more competitive. If the plan fails, the airline can strengthen the position of its low-cost unit in its own right. It is planned that the base of the low-cost airline will open in Munich, where he will be able to compete with Easyjet and Transavia, but the Spurs did not rule out that in 2018 the flights can start from Frankfurt.
Now at the final stage are the talks with Air Berlin about the transfer of 40 of its aircraft in wet lease airlines, Eurowings, Austrian Airlines and. Lufthansa hope that the official Declaration of agreement can be done by mid-December.
Plans by Ryanair to establish base in Frankfurt caused serious disputes about the amount of landing fees at the largest airport in Germany. According to Spur, in the future, Lufthansa will pay the same as Irish low-cost airline. According to his estimates the fare for Ryanair will be 15% lower than the fees that it currently pays Lufthansa. Thus, in the year the German airline will be able to save 200-300 million euros.
The operator of Frankfurt airport, Fraport, said that the new fee structure to be approved by the Ministry of economy FEDERALNOY Hesse. However, the company assured that its formation was taken into account the interests of all customers.
Meanwhile, Lufthansa said that unexpectedly high demand, recorded in September, allowed us to predict saving in 2016 of profitability on the level of last year. To maintain high-yield traffic growth rate of available capacity in the fourth quarter it was decided to reduce by 1%. Operating profit for the first three quarters amounted to 1.66 billion euros, which corresponds to the rate achieved in 2015.
In airlines believe that in 2017, the investment will amount to 2.7 billion euros. However, in 2018 and 2019, their volume is decided to be reduced from 2.5 billion to 2.2 billion euros a year. Lufthansa explained that the delay in deliveries of the Airbus A320neo, A350 and Bombardier CSeries will spread the investment costs over a longer period. The carrier also plans to abandon the exercise of options to lease age of aircraft.
Spurs have also proposed new ways to end the protracted confrontation with the Lufthansa pilots working for full-service directions, as well as Eurowings flight attendants.