KLM unhappy with Ryanair gaining Schiphol slots

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Viewing 6 posts - 16 through 21 (of 21 total)

  • Charles-P
    Participant

    Welcome to Capitalism !

    The reality of operators like easyjet and Ryanair is that they are very popular. Although I would never dream of using them millions do every year including my student daughter who thinks they are great because she can fly to see friends in the South of France for the less than the cost of a train ticket to London. If KLM can’t deal with competition they are in the wrong business.


    canucklad
    Participant

    You’re right Charles-P…. “capitalism”

    We are all bracing ourselves here in Edinburgh……..Wee Red is no more, so I wonder what will BA do next……


    AnthonyDunn
    Participant

    @ Edski777 – 03/09/2015 09:26 BST

    Not entirely sure I go along with all of your points.

    Whilst it is true that BA likes to maintain “Fortress LHR”, (which business wouldn’t want to hang onto such a local near-monopoly – ask the UK supermarkets…), the London (and the south-east travel) market incorporates not one but six airports around London and BA is not competing for traffic at only one point. It is the presence of the LCCs operating so successfully across the wider region at LTN, STN, SEN and LGW that has forced what many decry as BA heading down the LCC route in its domestic and intra-European offerings (HBO fares, universal seat pitch, pitiful catering in Y, massive salary cuts for cabin crew and ground handling staff etc.). This is a very different situation than is facing KLM/AF or quite a few other carriers (such as CX ) for that matter.


    Edski777
    Participant

    KLM like BA at LHR used to have a near monopoly at AMS. The competition was without feeder flights and KLM could operate its hubsystem with relative ease.
    There are plenty of cases like this worldwide, SQ, CX, EK (or the ME3 for that matter), etc. A sound homebase and very little competition. SIN has changed in the last few years with the rise of LCCs in SE Asia.
    KLM is looking at the same form of competition, but with some major players entering the arena. Easyjet and Ryanair will be eating away evermore at their European business and the likes of the ME3 will be canibalizing the Mid East, Far East and Oz routes.
    The results are already visible: MH was, even before the two tragedies of last year, seeing their customers switch. Probably some others faced the same. Prices have dropped to historic lows and KLM has for the first time this century announced lay offs.
    AMS can’t deny airlines the right to use the airport as long as the capacity is available. KLM has no monopoly rights and is scrutinized over this by the Dutch government and the EU.
    The situation gives airlines the possibility to enter into alliances to facilitate feeder flights from all over Europe to AMS and onto their flights. Maybe not as convenient, yet, as KLM, but definitely cheaper and often at comparable service levels.

    BA so far has escaped this form of “low cost” competition because of the shortage of slots. No one in his right mind would fly in or out of any of the 5 other airports to or from a BA flight at LHR. This will for some time to come effectively counter the competition and will keep BA in a comfortable position. A third runway may seriously change this.
    EU rules will not let BA gobble up the increased capacity. It is far more likely that the capacity increase will go to the competition.

    The opposition by Mr. Walsh in this sense is not that unexpected.


    canucklad
    Participant

    An incisive comment Edski, yet I feel the need to respond……I mentioned that I have a degree of empathy with KLM……let me explain why….

    1) They are not in charge of their own destiny, the good people in Paris will always sacrifice the hard working Dutch in favour of their own laissez faire brigade ….
    2) Like most legacy carriers in Europe , the AF management team are so stuck in linear thinking, they can’t devise simple solutions to the LCC /ME3 threat….
    3) The EU and it’s anti EU based corporate culture ….

    Having said all that, the Dutch like turkeys voted for Christmas….


    PeterCoultas
    Participant

    turkeys for xmas +1 and while we are at it why does their web site fail to function with Apple

Viewing 6 posts - 16 through 21 (of 21 total)
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