Lufthansa's CEO, Karsten Spor, has made some controversial comments today about the cheap prices of some of the biggest competitors at the ultra-low carrier prices. for less than 10EUR (~ 11USD) is "economically, ecologically and politically irresponsible." He said that "flights for less than 10EUR should not exist."
Not surprisingly, Sphhr has a motivation for what he says – Ryanair and EasyJet are growing significantly in Germany and hence selling a lot of cheap tickets. Spor says "no one will push us out of our markets" and that "the price war leaves traces with us."
He also states that Ryanair and EasyJet "lose a huge amount of money" trying to increase their market share in Germany. The effect of this has been felt so much that it has led Lufthansa to reduce its profit forecast.
It is quite convenient for all this to happen as a restructuring of low-cost Eurowings by Lufthansa and I guess it's not related to EasyJet and Ryanair
My comments on Spohr
Spohr's comments are both outrageous and self-confident, I think, and are one of the most pointless ways Lufthansa is attacking their ultra-low cost
economically, ecologically and politically irresponsible?
We may have seen different annual reports, but both EasyJet and Ryanair are extremely profitable. They just have a different way of selling tickets from Lufthansa, and that should be fine. the business model works for them.
If his proposal is that airlines are not earning money as market share grows in Germany, is not the case with many airlines? Typically, routes are not profitable from day one for airlines – it takes time to increase market share and that's something Lufthansa needs to know well here.
This is the most interesting moment for me. It can not be denied that travel has become much more accessible globally thanks to ultra-low-cost carriers, and nowadays there is much debate about whether this is a good thing or not. even encouraging people not to fly, time is different from the past.
But Lufthansa seems to take the position here that the right way to reduce emissions is to eliminate cheap ways to fly? This is convenient. Where is their campaign encouraging business class passengers with a full charge to have an electronic meeting instead of flying to face-to-face? 737s, which are under the age of eight years, while Lufthansa operates all types of aircraft, many of which have higher seat costs) so that Ryanair's passenger emissions are lower
is not 100% sure what Spor talks about. I guess he understands that EasyJet and Ryanair have some creative ways to create their business to cut costs. If this is the case, there are many airlines where it is, and it is clear that he differentiates them only after they have grown up in Germany. For so long, Lufthansa has taken Germany for granted, and now EasyJet and Ryanair finally give them some competition on short-haul flights.
There is nothing economic irresponsible about this, because airlines that sell cheap flights are profitable. Regarding environmental responsibility, there is no doubt that we are seeing a trend towards emission reductions, but I do not think cheap tickets are a problem. A person who pays 10 euros to fly with Ryanair has just the right to fly like someone who pays 60 euros to fly with Lufthansa, I think.
What are you doing with Spor's comments? Is it irresponsible for airlines to sell super cheap tickets