How the low cost airlines hope to take advantage of the crisis - The Point

The end of the restrictions of distance of the move and the upcoming opening of borders between european countries give the green light to the resumption of the

How the low cost airlines hope to take advantage of the crisis - The Point

The end of the restrictions of distance of the move and the upcoming opening of borders between european countries give the green light to the resumption of the air transport medium-haul. At the same time, the passenger takes confidence, reassured by the organization of the detachment in the airports and by the sophisticated system of filtration and renewal of the air on board aircraft. FlightRadar has identified 9 050 flights in the world on the 1st of June at 15 hours GMT, or 48 % of the number of flights recorded at the same time a year earlier. It was $ 17 626. But the situation has changed because the Statements accompany their financial aid mandatory recommendations relating to the services. The most prominent relates to Air France, which no longer offer domestic airlines if the TGV has the same mission in less than two and a half hours. Incidentally, this constraint removes a thorn from the foot to the national airline, because the domestic flights that generate a significant portion of its deficit, 189 million euros of losses last year. The State aid and Air France to perform this painful operation, a reduction of 40 % of the domestic traffic. The goal set up by Ben Smith, the boss of the group, was announced last week, at the annual general meeting of shareholders.

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For Air France, renouncing to operate flights out of Orly, it is losing market opportunities, except administrative decision to the contrary, will be redistributed to the competition to ensure that the same lines or other services. In Frankfurt and Munich, the slots abandoned by Lufthansa can only be accepted by companies who have not received public aid. But the national company has a response to this double punishment by appeal to its low-cost Transavia. It is known that it progressively releases the barriers arising from collective agreements signed at its inception in 2007. They are gradually terminated, since its drivers are recruited among the personnel of Air France. The number of aircraft in its fleet is no longer limited to 40. In addition to Orly, Nantes and Lyon, a new database is created at Montpellier and others are in the project.

The asset Transavia

Profitable since 2017, Transavia has tools to withstand competition from its counterparts in low-cost airlines easyJet, Ryanair, Volotea, etc on The ground, it does not rely on the costly stops for Air France, but makes use of the services of assistance the most effective rates in the market. Its aircraft – all Boeing 737-800 with 189 seats – offer operating costs comparable to those of the A320 of easyJet, the B737 of Ryanair or A319 Volotea. They are much more productive than the Embraer and the Bombardier Air France HOP ! 70 to 100 seats, a number that is fixed by the trade-union agreement " scope clause ". And, to Ben Smith, the boss of Air France-KLM group, two families of aircraft in a small fleet of 56 aircraft, it is one too many.

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Also some lines at the start of Orly and of the cross will they be likely to be provided by the low-cost Transavia instead of Air France, HOP !, that will have to be satisfied with the service input hub of Roissy-CDG and flights from Lyon. With the increased productivity, the passenger flying with Transavia is expected to benefit from the best rates. In contrast, with boeing 737 aircraft, offering two times more seats than the Embraer, the number of daily frequencies could be revised downward, which will not guarantee the" return day ", dear to the business clientele. Thus, ASL Airlines partially fills the disengagement of Air France by offering at least four frequencies weekly Paris CDG-Pau as of June 10.

Ryanair will sell at a loss

Ryanair, which has "financial reserves are important," according to the british trade union Unite, wants to start a war of rates with tickets from a euro. According to the boss of the group Ryanair, Michael O'leary, the company " will sell at a loss to encourage people to travel again ", the ticket price being set at the level " necessary to fill the most seats possible." 40 % of the common traffic is referred to in July. The leader wants to divide by two the price of plane tickets in July and August in order to gain market share on its rival. Wage cuts of 20 % for pilots and 10% for the air hostesses and stewards are announced. An agreement of collective performance over five years is being negotiated relating to the bases on the French carrier irish who would exclude layoffs.

The other major low-cost european easyJet moderates its rates without however selling out. Flights available from 29.99 euros for the trip are advertised on a million flights in July and August. The low-cost british service in July more than 140 destinations in France (its second market), and over 200 in August. Wisely, she refuses to compete with the TGV, except Paris-Geneva. Already very active on Lyon-Toulouse, Lyon-Bordeaux, Nantes, Toulouse and Lille-Bordeaux, easyJet will not fail to be interested in lines radial and transverse abandoned by Air France, HOP !. If Transavia not be settled.

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Updated Date: 05 June 2020, 08:33

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