"El Relámpago(LZone) - Humanity First!" (lightningzone)
10/29/2017 at 11:37 • Filed to: None
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"El Relámpago(LZone) - Humanity First!" (lightningzone)
10/29/2017 at 11:37 • Filed to: None | 2
| 7 |
Lufthansa Group members.
And is one of the few airlines left bidding for Alitalia(sort of, Alitalia is doomed).
Why this consolidation?
Budget airlines and their disruptive effect.
Even with all those companies, Lufthansa only had 3 million passengers, more than Ryanair.
WilliamsSW
> El Relámpago(LZone) - Humanity First!
10/29/2017 at 12:30 |
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I don’t know Italian, so I’m not sure what all of the numbers are, but I am surprised by the passenger count. That said, revenue passenger miles is a better indicator - Lufthansa is taking those people farther, so there’s more revenue (generally).
But yeah, the budget airlines have been very disruptive, especially in Europe. I wonder if, at some point, the legacy (flag) carriers start ceding the short haul market to focus on long haul, where they make their money.
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El Relámpago(LZone) - Humanity First!
> WilliamsSW
10/29/2017 at 12:59 |
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I doubt traditional airlines will give up without a fight. They are already creating their own budget airlines. You have Eurowings, that seems to in between Lufthansa’s travel experience and Ryanair’s flying torture. Air France created Transavia and the millennial oriented Joon. Iberia created Vueling and Level.
As cost of flying decreases, allowing more and more people to fly, we will see a further segmentation of the airline industry, as different people have different needs.
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El Relámpago(LZone) - Humanity First!
> WilliamsSW
10/29/2017 at 13:04 |
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Alitalia had a revenue of €3.3 billion, Ryanair made 6.5 billion and Lufthansa made 31.6 billion.
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El Relámpago(LZone) - Humanity First!
> WilliamsSW
10/29/2017 at 13:14 |
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When it comes to profits Alitalia lost 200 million, Lufthansa had 1.7 billion in profits and Ryanair had 1.2 billion.
So yes, the cheapest budget airlines can make a big buck, but most of the time, it comes at the expense of passanger comfort.
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WilliamsSW
> El Relámpago(LZone) - Humanity First!
10/29/2017 at 15:40 |
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It’ll be interesting to see how the Joon/Eurowings etc do. The US airlines did something line that years ago, and they all failed. Hopefully the Europeans learned some lessons and improved the model.
And yeah, the budget airlines are drawing in people from cars, trains etc, not just the major airlines.
Cé hé sin
> El Relámpago(LZone) - Humanity First!
10/29/2017 at 15:46 |
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Compared to Ryanair Lufthansa seem hideously overstaffed (assuming dipendenti are staff).
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El Relámpago(LZone) - Humanity First!
> Cé hé sin
10/29/2017 at 16:12 |
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Comparing traditional airlines with budget airlines is apples and oranges really.
This video explains why budget airlines use a lot less employees.
Also, budget airlines usually use smaller planes(737/A320), while traditional airlines use bigger planes too, planes that need more flight attendants and ground tech staff.