The airlines Ryanair and Aer Lingus think ticket prices will be down next year, but either SAS or Norwegian agree.
The article is added to your reading list.
– It will be a bloodbath, says Aer Lingus CEO Christoph Mueller to DN .
– And it has already started.
SAS Director Eivind Roald told DN last week that it will be more expensive to fly because no airlines make money in the current situation. Prices should be up, he stated.
– No way. Prices should be even more down, said Mueller at World Low Cost Airlines Congress in London on Tuesday.
– Low cost companies – including English – have such low cost that they can afford to push prices down further. It is their sharpest weapon, so why should they not use it? Network companies have no choice but to cut costs and try to keep up with the game. If they do not, they succumb, says Aer Lingus boss.
Also marketing manager Kenny Jacobs Ryanair think the price war continues.
– Yes, I think that prices will drop further – and the battle has already started in Scandinavia between SAS and Norwegian. Here are the ticket prices pushed far down, but I see no reason why they should back up, says Ryanair top.
Little to go on
predictions from Aer Lingus and Ryanair have little support among Norwegian analysts. They do not think further price declines.
– There are very few companies that make money to fly short distances in Europe, so I do not think it’s so much more going on in terms of further price declines, Hans Erik Jacobsen in Swedbank.
He said that Ryanair has given up most of its routes from Rygge in Østfold precisely because they were unprofitable. It may also indicate that prices are adjusted slightly, says Jacobsen.
– On some routes have earnings been so bad that the competition has gone down, and players have withdrawn as Ryanair has largely done on Rygge, and on such routes will be possible for the remaining putting up prices again, he said.
– Ticket prices for SAS and Norwegian have fallen quite sharply over a year. Now it seems that it is starting to level off, says analyst Kenneth Sivertsen at Arctic Securities.
Kenny Jacobs Ryanair said the company will do its best to keep prices as low as possible.
– As long as we focus fully on keeping costs low level, can we afford it, says Jacobs.
– Do some airlines succumb as a result of price war?
– Some of them will at least incur major damage, he said.
Neither up than down
Norwegian CEO Bjørn Kjos However skeptical flytoppenes gloomy predictions of a bloodbath in the airline industry.
– I do not believe any bloodshed. I do believe rather that it is “business as usual” next year. Prices will remain roughly at current levels. I think it is more likely that prices will slightly up than down, he said.
– Aer Lingus chief says that English can afford to push prices down even more?
– We have low costs, we have to have, but we have to make money too. Otherwise it is not possible to run an airline. But of course, no one believes that anyone bothered to pay 2,000 pounds for a flight to London, the time is past, says Norwegian boss.
Kenneth Sivertsen at Arctic Securities believes prices during the fall, increase compared with last year.
– Because the price level fell sharply in November last year, so it will be easier to defend the same level this year.
– Have the lower fares?
– In the longer term, the price level is controlled by a lower cost. This means that prices will continue downward, but the airlines have got a respite this year and next year, says Sivertsen.
No comments:
Post a Comment