Anisec/Level enter administration
Looks like Anisec/Level, has ceased trading with immediate effect :(
https://cms.flyleveleurope.com/en/leveleurope No impact on Paris or BCN long haul ops. |
Sad news for all connected with the company. You would have thought IAG would have been able to keep them afloat with their deep pockets, maybe they didn't want to. There'll be more airlines going the same way in the coming weeks no doubt.
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Interesting article suggesting the Austrian government are taking steps to protect Austrian Airlines from low cost competition :
https://centreforaviation.com/analys...e-floor-527571 |
Minimum fare is for all, how does it iffect only low cost carriers?
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It doesn’t just affect low cost carriers, it affects low cost carriers disproportionately. The article explains why. I added the link as it may or may not have had any influence on IAG’s decision.
To be clear, I’m not expressing a personal opinion on the matter, just providing some background info for consideration. |
Most of the 40 euro goes on taxes for the government, so where is the advantage by legacy carriers?
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If you take the time to read the article, you’ll find an answer as to why this might be a particular problem for low cost carriers operating out of Vienna. You don’t have to agree with the conclusion..
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In fact, I do not agree😉,all airlines will be forced to raise prices and those with lower prices will get the passengers on board. It looks simple to me but I might be terribly wrong🤣
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The big legacy carrier (Austrian) never had prices below 40 euros on offer anyway, so they are not affected. The low cost competitors however are "forced" to raise their prices, e.g. making them less advantageous over Austrian.
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We'll see😉
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Austria has presented a plan to prohibit tickets to be sold for less than the fees and taxes incurred for providing the flight, i.e. prohibit price dumping of airline tickets. This being a European first, the rationale is twofold: reduce the number of flights that are booked mainly on price (like people flying to Mallorca and back every day because it's cheaper than a hotel) and, even more important and noteworthy, improve LCC working conditions. It remains to be seen how this will be implemented legally and if Austria will follow up with further steps against exploitation of flight crew on the European level. (The transport minister is from the green party, so improvements in train travel and reduced pricing for public transport were announced together with the Austrian Airlines savings package, probably the "political price" to gain the Greens' consent for saving an airline with state money, something that does not go down well with part of their voter base although the economically savvy inside the party realize that it's necessary.)
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Originally Posted by Alrosa
(Post 10814336)
If you take the time to read the article, you’ll find an answer as to why this might be a particular problem for low cost carriers operating out of Vienna. You don’t have to agree with the conclusion..
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