Rival airline boss predicts death of Ryanair
29.10.09
The chief executive of budget airline Germanwings, Thomas Winkelmann, predicted the demise of Ryanair because it does not attract the corporate market. The rival airline boss told online news service Travelmole that airports found that the more Ryanair flies to an airport, the higher the losses it has to sustain, and that tax payers in destinations should not have to bear the brunt of Ryanair’s business model.
Mr Winkelmann, however, said the recession had provided the right growing conditions for most low-cost airlines. It had made travellers more price sensitive, made class differentiation irrelevant on short-haul flights and necessitated the lowest possible distribution costs, he said.
With Ryanair struggling to secure new deals with airports, aircraft manufacturers and even ancillary revenue partners recently, it seems the world is waking up to the fact that it is usually only Ryanair that makes money from a deal with Ryanair. If this erodes the airline's long held position as the lowest cost operator, then Mr Winkelmann could be correct. After all, if they did not offer the cheapest flights, how many passengers would really want to fly with Ryanair?
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