Germany and AustriaLufthansa pledges to beat Ryanair
The price war in Germany and Austria is tough. But Lufthansa-CEO Carsten Spohr is convinced that his company will win it.
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The competition is in full swing, it is tough and it demands sacrifices. "And we are right in the middle of it," says Carsten Spohr. The price war currently raging on short-haul routes in Germany and Austria is "unique", the Lufthansa CEO told journalists in Frankfurt on Monday evening (19th August).
Austrian Airlines, where Ryanairs subsidiary Lauda is operating, and Eurowings are suffering the most. Lufthansa's low-cost subsidiary is in the red. In autumn, it is supposed to present a cost-cutting programme aimed at reducing costs and increasing profitability. Because there is one thing Spohr is not willing to do: "We won't let those who were used to coming, seeing and winning drive us away on our home market.
Financial strength helps in weaker phases
Spohr said, regarding the Irish competitor in particular: "We have the financial strength to counter this". In other words. Even if Eurowings is not fit at the moment, the Group has the strength to withstand even weaker phases. He believes that smaller airlines in particular will remain on the route in the cut-throat competition.
In the longer term, there will still be twelve large groups worldwide, Spohr believes. Lufthansa is one of them. "We are well positioned for the increasing global consolidation in which we want to play a role and will play a role. Three companies in Europe, three in the USA, three on the Bosporus and around the Persian Gulf and three in China will survive, Lufthansa's CEO continued.
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