Ryanair extended (12-Sep-2011) its reserved seating service to 12 Brussels Charleroi routes and 11 Milan Bergamo routes on services from 22-Sep-2011. The pre-booked service, which costs EUR10 one way, included priority boarding, and allows passengers to pre-reserve seats in the front two rows, for a prompt exit on arrival, or in over wing emergency exit rows. Ryanair will also continue to offer its Priority Boarding service on all routes from the two airports for EUR5, with priority and reserved seating passengers boarding the aircraft first. [more - original PR Brussels Cherleroi] [more - original PR Milan Bergamo]
Ryanair extends its reserved seating service on 12 Brussels Charleroi routes
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Ryanair's 117million pax in 2016 tops European airline groups. The first time an LCC topped rankings
For the first time ever in Europe, in 2016 a low cost airline carried more passengers than any other airline or airline group, as Ryanair's 117 million passengers pushed Lufthansa Group's 110 million into second place. Ryanair had beaten Lufthansa itself, but not the whole Lufthansa Group. IAG's first full year of including Aer Lingus helped it to take third place from Air France-KLM. Europe's number two LCC, easyJet, was ranked fifth.
The big five can be expanded into a big seven to include Turkish Airlines and the Aeroflot Group, although these two had contrasting growth rates in 2016. A chasing pack of middle sized airline groups includes three LCCs (Norwegian, Pegasus and Wizz Air) and three legacy airlines with varying challenges to establishing sustainable profitability (SAS, Air Berlin Group and Alitalia).
Most of the faster growing airline groups in the top 20 are LCCs and the main growth drivers for Europe's big three legacy groups are their LCC subsidiaries. Just outside the top 20 are some fast growing legacy airlines in Eastern Europe, demonstrating the potential there. Nevertheless, unless there is a big merger or acquisition, Ryanair looks set to remain at number one for some time.
Lufthansa folds Brussels Airlines into Eurowings, keeping dual brands. LH has many balls in the air
On 15-Dec-2016 Lufthansa’s Executive Board formally decided to exercise its call option for the 55% of shares it does not already own in the parent company of Brussels Airlines. The deal will close by the beginning of Jan-2017. It had been expected that Lufthansa would fold Brussels Airlines, at least partly, into its Eurowings low cost brand. Lufthansa has now confirmed that the new acquisition will join Eurowings and be fully integrated into the Group as of 2018.
Nevertheless, there are clear differences between Brussels Airlines' business model and that of Eurowings. Brussels Airlines is a network airline (and a Star Alliance member), while Eurowings is primarily a point-to-point airline. Furthermore, Brussels Airlines is not low cost in CASK terms, although, ominously, its unit cost is below Eurowings'.
Strangely, and perhaps tellingly, Brussels Airlines will retain its brand while adding that of Eurowings. This hints at the tension between Lufthansa's urge to expand Eurowings rapidly to compete with LCCs and the necessity to work out exactly how Brussels Airlines can fit into its low cost operation. Perhaps the delay between completion of the Brussels Airlines acquisition and its integration into Eurowings will give time for further refinements to the model. In short, Lufthansa has a lot of balls in the air. Where they will fall will be critical to its future.