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Lufthansa CEO: It’s “Irresponsible” to Offer $11 Tickets

Lufthansa CEO: It’s “Irresponsible” to Offer $11 Tickets
Joe Cortez

The leader of Germany’s largest airline is rallying against ultra-low-cost carriers and their fares, calling them “irresponsible.” In a commentary to a Swiss newspaper, the executive made his thoughts clear: there’s no place in the world for $11 airfare.

Lufthansa Group chairman and chief executive officer Carsten Spohr has a message about low-cost carrier competition in Europe: selling fares for as little as 10 Euros (around $11) hurts the entire aviation industry. According to a Bloomberg report, the airline leader made comments about Ryanair and others during an interview in a Swiss newspaper.

Spohr is quoted as saying the low fares are “economically, ecologically and politically irresponsible,” followed by making a definitive statement: “Flights for less than 10 euros shouldn’t exist.” He also took aim at the profit lines of Europe’s low-cost carriers, accusing them of “losing a massive amount of money.”

Low-cost airlines are a staple of Europe’s aviation market, with companies like Ryanair and EasyJet offering fares for as low as $11, excluding seat selection and luggage allowances. The direct competition for passengers has forced companies like Lufthansa to open no-frills subsidiaries, like Eurowings.

Their growth was predicted in a 2003 study commissioned by the International Civil Aviation Organization, the air wing of the United Nations. Their study predicted by 2013, low-cost carriers would “possess around one-third of the intra-European market.” It went on to predict today’s fare wars by writing: “New price sensitive markets will emerge, such as Germany, Scandinavia and the countries of Eastern Europe.”

The rise of low-cost carriers also came at a price – other European carriers. In 2017 alone, due in part to rapidly decreasing fares, both Air Berlin and Monarch Airlines went bankrupt, leaving thousands of passengers stranded away from home.

Although the ongoing fare war forced Lufthansa to reduce 2019 profit forecasts due to increased competition, the carrier noted they will remain the dominant carrier in Germany. The airline group includes other holdings, including SWISS.

 

[Featured Image: Ryanair Wizz]

View Comments (3)

3 Comments

  1. abraxis

    July 16, 2019 at 3:07 pm

    I don’t know. The “sexist” Air NZ safety announcement was in honor of Sports Illustrated’s swimsuit issue, was shot in New Zealand and shows the models in commanding and superior positions throughout the video. I thought that was goodthink. OP seems offended that SQ has not bowed down to the PC deity and lowered its standards for inflight service to AA/UA standards. Guess what? She doesn’t have to fly SQ. Or CX. Or NH or JL or OZ or KA or BR or TG. Or even AK. Be happy on UA and AA and revel in the lack of service she supports.

  2. alangore

    alangore

    July 16, 2019 at 7:57 pm

    Lufthansa, it’s not the $11 fares for a few loss-leader routes that are taking away your business. It’s your own fading customer service and relentless adherence to Zee Rules over any form of common sense.

  3. strickerj

    July 17, 2019 at 5:46 am

    Sounds like sour grapes to me – Lufthansa’s CEO is basically saying “other airlines shouldn’t be competitive with us”. If there’s a market need, someone will fill it.

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