KRO wint rechtszaak tegen Ryanair

Originally posted on Werkloze vliegers:

Op woensdag 16 april deed de rechter uitspraak in de procedure die Ryanair had aangespannen tegen de KRO naar aanleiding van de Mayday Mayday -documentaires over de Ierse prijsvechter. De rechter oordeelde dat de twee uitzendingen die KRO’s Brandpunt Reporter over Ryanair uitzond niet onrechtmatig waren. De omroep hoeft de uitzendingen over de gebrekkige veiligheid bij de vliegmaatschappij niet te rectificeren en van internet te halen. De beschuldigingen uit het programma over het brandstofbeleid en de bedrijfscultuur van Ryanair worden voldoende onderbouwd door het beschikbare feitenmateriaal.

KRO Reporter maakte de uitzendingen na de noodoproepen boven Valencia op 26 juli 2012 van drie vliegtuigen van Ryanair die wegens het slechte weer niet konden landen in Madrid en moesten uitwijken naar Valencia. In de uitzendingen kwam aan de orde dat Ryanair vanwege kostenreductie piloten zou aanzetten om zo min mogelijk brandstof te tanken. Door de angstcultuur binnen het bedrijf zouden piloten zich hiertegen niet…

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Hamburg, A destination of choice for business travel

Why do all the low-cost carriers want to fly to Germany?

You simply cannot have missed it. Germany has become the place to be for low-cost carriers: Ryanair flying to Cologne, easyJet sitting tight in Berlin and Hamburg, Vueling massively developing in Germany in general…

Media has tried to link this newfound interest to Germany’s status of growth engine of Europe. While certainly true, this explanation still misses the point. The reason why all the transporters choose Germany lie in two words: business travel.

 

How does the German front look like?

Before going deep into strategic considerations, let’s take a look at German aviation market. Repeatedly pictured as “dynamic” before 2010, it suffered however a relatively weak low-cost penetration (32%) compared to countries such as Spain, the UK or France. According to the data found in the 2013 “Low Cost Monitor report” published by German aerospace center (Deutsches Zntrum für Luft – und Raumfahrt), the market share of the low-cost segment has been plateauing for some years.

This might be subject to change with the latest demise of Air Berlin, which has been struggling for cash and which may end up taking strategic decision… that is to say slashing into the less profitable routes. One has to consider that 96% of the German low-cost market is divided between Air Berlin, Germanwings, Ryanair, easyJet, Intersky and Flybe (in order of importance). Air Berlin had by far the most important low cost offer in Germany, that is to say 746 flights a week.

Long accustomed to a static low-cost market, a reduction of routes for Air Berlin represent fresh air for the rivals and a potential goldmine. Without a doubt, they shan’t wait to feast on the remnants of Air Berlin’s old empire.

 

Business travel

The reason why Germany could prove to be a reasonable investment though is its status of “growth engine” in Europe. I suspect carriers to attempt reaching to business travelers who commute between German cities and other countries. It was already the reason why easyJet chose Hamburg (2nd largest city, biggest port in Germany), a destination set to explode in the coming years, and which is a key place to do business according to Business Travel. And make no mistakes: all the lights are green for business travel to explode in Germany, as this graphic made by IATA and other professionals show.

2014-germany-business-travel-spending

Of course, this does not mean that tourists will be left behind, although they are less valuable than what they are today. However the relative weakness of Germanwings and the change of strategy of Ryanair to business travel are, according to me, sound evidence that the battle for Germany will be about business travel.

The war promises to be bloody: in response to Ryanair’s surprise opening in Cologne, Germanwings decided to take on the Irish company on a Dublin-to-Cologne route. On the other hand, ailing Flybe chose to close its routes. A fair choice considering its bad financial health.

Vueling vs Ryanair Let the fight begin

Ryanair vs Vueling: let the fight for business travel begin

Vueling Ryanair Business Model

Differences between Vueling and Ryanair business model. Considering Ryanair 2014, some data could use an update.

40% of Vueling’s routes compete with Ryanair noted Vueling CEO Alex Cruz.

“They are coming after you”, added Rigas Dogaris, non executive director at easyJet. “So I hear”, Cruz replied. (more…)

Marseille: Ryanair condemned by French court to pay a fine for work law breach

Breaking: Ryanair forced to deposit 9M€ by French court until appeal’s judgment

This afternoon, French trade newspapers Tour Mag informed us that Ryanair was sentenced by French court to deposit the totality of the fine (9M€) imposed to it over work law breach at the airport of Marseille. This is a bad news for the no-frill carrier, which has been moving heaven and earth to try to delay the lawsuit in the past, and had tried avoiding to pay the fine until the appeal judgment was pronounced.

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Airline and Carbon Emission

EU Parliament exempts long-haul from carbon taxes, but imposes it to medium-haul

In a precedent article, I was explaining to you the impact of the EU ETS scheme on medium-haul. As said before, if the decision had been a cliff hanger for long-haul, the regional carriers and LCCs on the other hand didn’t have much hope left.

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Etihad and Air Berlin Logos

Is Air Berlin under Etihad’s negative influence?

 

European Commission is said to have opened an investigation into Etihad’s participation in Air Berlin, according to French financial newspapers Les Echos. Bruxelles fears that although the Gulf airline “only” possesses 29,2% of Air Berlin, the carrier’s actual control over the German airline is much stronger. And while Etihad considers delisting the carrier and raising its stake to 49.9%, European Law also requires that the senior management is assured by European citizens. Viewed from Brussels, this stake increase is not welcome and European Commission reportedly suspects an illegal takeover. (more…)

GermanWings Airline, Lufthansa Group

Should Lufthansa part with Germanwings?

Lufthansa’s Germanwings is a moderately successful low-cost carrier, with a fast growth and aiming for 7.7M passenger traffic by 2015. It may be able to blossom into a serious contender in the short-haul, medium-haul. However, a WSJ journalist has lately drawn attention on how Germanwings was actually grounded by the heavy presence of the Lufthansa group, and how it could use for some “freedom to fly”.

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Irish budget airline Ryanair CEO Michael

The new Ryanair missed the opportunity to convince

Ryanair’s yesterday pan-european conference had aroused a great deal of expectations from journalists and observers.  For over two hours, CEO Michael O’Leary and Kenny Jacobs, the new strong man of the company, tried hard to convince that they have changed. However, the absence of strong news and the usual comical speech made it look like another of the airline’s usual PR stunt – plus the dishes.

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Lawyers Take Action at Ryanair After 2012 Plunge

It’s rare enough to be noted, but a group of lawyers, specialised in the aviation business, have decided to take action against Ryanair. The airline probably didn’t see it coming as the lawyers chose to sue Ryanair for a 12,000 plunge that happened back in 2012.

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europe24-flight-beautiful-flight-path-05

Mind-blowing NATS data visualisation of European Air Traffic

As I was strolling around on the Web today, I came over a mesmerizing data visualisation realised by the NATS (UK’s National Air Traffic Services). Based on UK radar data and European flight information, project Europe 24 displays the traffic of the busiest airports in the world with a mosaic of intertwining blue lines that strangely reminds of Avatar. Mirroring a “typical summer day”, the agency delivers a mind-blowing overview of what happens over our heads every day…. literally!

Europe 24 from NATS on Vimeo.