Low-cost airlines want to challenge the AAU market leader in Austria

Low-cost airlines want to challenge the AAU market leader in Austria

LINZ / WIEN. Laudamotion, Level & Co: Why Domestic Airspace Currently Attracts So Many Suppliers

From Linz to Mallorca from 24 euros, or from Vienna to London for 30 euros? Air travelers in Austria are currently spoiled for choice. Never before has there been so many good deals. Reason are the cheap airlines, which grow on the market. This year alone, there are three. Why is Austrian airspace so attractive and what does it mean for customers and the domestic dog? AUA:

What characterizes low-cost airlines?

For example, the British Easyjet charges less than 50 euros for half of its tickets. In return, the comfort is removed. Food and drinks are only available for a fee or not at all. While major airlines have a dense network with interchanges, there are almost only direct and short-haul flights on low-cost carriers. Low-cost carriers are increasingly generating revenue through additional revenues, such as baggage fees or seat reservations. The most important cheap airline in Europe, the Irish Ryanair, now accounts for nearly a third of sales of 6.65 billion euros in additional revenue.

Which low-cost airlines are there in Austria?

Ryanair flies to Linz and Salzburg in Austria. Ryanair will soon have 75% of Laudamotion, which comes from Niki subsidiary of Air Berlin. The second largest low-cost airline in Europe, EasyJet Europe, even moved to Vienna because of Brexit. Eurowings Europe (subsidiary of German Lufthansa) and, since April, the Hungarian Wizz Air have also been active in this country and this week, Level with four planes also started at Schwechat airport. Level is a subsidiary of the Spanish Vueling, both owned by the parent company of British Airways, IAG (International Airlines Group).

Why is Austria so interesting for low cost airlines?

"The bankruptcy of Air Berlin and its daughter Niki opened a breach," says Kurt Hofmann, an aviation expert from Schörfling. The halving of the flight tax, which came into effect on January 1, had a beneficial effect. Hofmann currently estimates the market share of low cost airlines in Austria between 20 and 25%. For comparison, in Spain it is 50 percent.

What does this mean for AUA?

The Austrian market leader (83 aircraft, 6914 employees) has competition on the radar. "We take new competitors very seriously," he says in a written statement to OÖNachrichten. At the same time, Lufthansa's subsidiary stresses that it has "built its own huge weight". It is possible to control traffic flows, prices or distribution "in an extremely fast and flexible way" from a single source.

What consequences does the new air order have on customers?

At best, more sellers mean lower prices for pbadengers. As cheap as now, you almost never could fly on vacation. However, there are also critics. On social networks, some tourists express their anger about cheap airlines. Suppliers are not afraid to cancel the flights. Only Eurowings canceled between January and June due to excessive demand for nearly 2600 flights. Other reasons for flight cancellations are a mixture of lack of pilots, storms and strikes from the workforce – for example, because there are no has no payments. In these cases, pbadengers often have to book more expensive return flights.

What rights do I have as a traveler if a flight fails?

If a flight is canceled or lasts at least three hours late, the customer is entitled to compensation for a distance of up to 1500 kilometers, that is 250 euros per person, up to at 3500 kilometers 400 euros, for more than 600 euros. But even in the handling of complaints, cheap airlines sometimes have bad reviews. Flight cancellations may soon affect those traveling with Ryanair. Because the union has called flight attendants to leave their jobs, 300 Irish flights to and from Spain, Portugal and Belgium will be canceled next Wednesday and Thursday. About 100,000 pbadengers are affected. They are informed by SMS or e-mail, they say.

There is great competition among airlines. Lufthansa and Ryanair fight for nine planes from Laudamotion. What is happening in this cause?

Today, Friday, there is a first date of hearing. In London, leases are negotiated. As stated, Lufthansa had canceled the contracts for nine Airbus A320s – on the grounds that Laudamotion has repeatedly paid no invoice. This in turn denies Laudamotion. The end of the conflict is completely open. The industry expert Hofmann hopes "in the customer's interest on a reasonable solution for all parties, especially now in the main tourist season."

Here you can read the editorial on this topic.

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