2023-05-29 11:53:00
Will “low cost” flights soon disappear? In any case, this is what the boss of Brussels airport, Arnaud Feist, suggested last Wednesday in “RTL info Signatures”. According to him, low-cost airlines are also forced to increase their prices. So is this really the case? Is this the end of this “model”?
There is no doubt: flying will cost more in the future. Rise in the price of kerosene, spare parts or taxes, the price of tickets will swell in the coming years. The boss of Brussels airport confirmed this in RTL info Signatures. And according to him, these increases will have a consequence: “I think the low cost model is coming to an end a bit”declared Arnaud Feist last Wednesday on our antenna.
Are we heading towards the end of the low-cost model? Or rather will some companies remain much cheaper than others? For Paul Belleflamme, professor of economics at UCLouvain, the answer is no. “The customers of low-cost airlines are the most price-sensitive. So if prices increase in all airlines, demand will drop sharply. Especially for low-cost airlines, perhaps less for other airlines. And as these companies live on a model that compensates for low margins with high quantities, if the quantities drop a lot, the model is in trouble.”
The costs in these low-cost companies are already reduced to a minimum, especially at the level of the staff who are often on strike to denounce the working conditions. “We will strike 2 weekends a month, and this, at the end”warned Didier Lebbe, permanent secretary of the CNE union, last January.
The possibilities of cutting costs are practically nil. “There was a pressure on the staff which is becoming more and more difficult to accept. We saw it with the strikes on the side of Ryanair. The model which consists in having planes of the same type to save on the costs of interview, we cannot go much further than what has already been done”continues the economist at UCLouvain.
Going to Spain for 10 euros, so it’s over. Ryanair has announced price increases of 15% this year.
1685365888
#euro #flights #Spain #heading #cost #model #economists #answer
