Eurowings report of ultra LCC airline decline in Germany is premature

Premium Analysis

According to Eurowings CEO Jens Bischoff, "the ultra low cost business model is on the decline throughout Germany".

The head of Lufthansa's point-to-point low cost airline said this while announcing plans to replace 95% of the capacity to be withdrawn by the ultra LCC Ryanair Group from Duesseldorf.

The base of Ryanair's subsidiary Laudamotion at Duesseldorf will close from 24-Oct-2020, following the closure of its Stuttgart base at the end of Sep-2020.

This is fighting talk from Mr Bischoff, but may be premature. Europe's three LCC groups – Ryanair Group, Wizz Air Group and Pegasus – have increased their share of Germany-Europe capacity throughout 2020, including the period after fleet groundings. Ryanair Group and Pegasus are cutting capacity by less than the market, whereas Wizz Air is almost maintaining 2019 capacity levels.

Moreover, Ryanair's closure of Laudamotion bases in Germany should not be interpreted as a withdrawal from this market. Laudamotion was restructured when employees did not agree to new terms, and Ryanair now has a new subsidiary, Lauda Europe, to facilitate the opening of new bases across Europe.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,862 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.