The growth of these countries should reach 2Even if it is darker in the markets these days the anomaly should be notedMy job is they tell the well in good rhythmNew flexibility in the Caisse d'Epargne groupThe first of them is the shortage of waterThe sanction was immediate the action lost 5000 tonnes per year in addition to the 265A way of marrying tradition and modernityIt therefore decides to cool the buildingWhere there are uniforms there are burrsThree years after their arrival on the French market, airlines to lower costs, such as EasyJet and Ryanair, have settled in an air landscape rocked by a series of bankruptcies unprecedented in its history with AOM/Air freedom, Aeris, then Air Littoral. What was known about the tone of the "low cost phenomenon" contempt is today firmly rooted in the minds of consumers, be they leisure or high contribution passengers. Last year, companies low-cost, including EasyJet and Ryanair, have transported nearly 8 million passengers a total of 23 million against 5,55 million in 2002, this in a sluggish market, fell by 14.7 compared to 2000.
What responses to low cost
With this new competition in the air sky French and European, the so-called "full service" companies such as British Airways, Air France and Lufthansa have taken time to grasp the magnitude of a threat they had largely underestimated. Except for the UK market where the company flagship has long stiff competition, both Germany and France, it must be conceded that competitors have never been to their ambitions.
However, EasyJet and Ryanair to leave not intimidate and market share that they have removed will be difficult to resume. In addition, counterattacks by the "full service" companies leave perplexed. Where expected a good dose of innovation, companies are still obsessed by their profitability. It is the "dictatorship of the Ebitda." "The objective of a company is not to die rich and healthy, but to earn money by transporting passengers and cargo," said a professional. A carrier justified profitability research based on the importance of the investments required by carriers (a good balance allows to obtain good lines of credits to acquire or lease aircraft). Profitability is worthy after the historic losses over the past three years, but are not the financial analysts that fill the aircraft.
What are these companies doing Air France launches a series of measures to increase its competitiveness, including by making its fee structure more readable; the commissioning of officers travel to 7 will be eliminated or limited to 1; sales via the Internet are developed; a simplified and standardized service will be introduced on European flights. After British Airways, which size wherever possible, Lufthansa is preparing to turn to take measures to reduce costs through its commission rates to zero in Germany, by reducing the number of aircrew on its short flights and haul of 5-3 and in thinking about potential savings provided benefits in class cases. "We must reduce our costs to the low cost and the decrease in the business market", justifies in Lufthansa. On the other hand, tariffs, they are not falling, a hypothesis also virtually excluded for these carriers because of the weight of the fixed costs (salaries, airport taxes, prices of kerosene...).
What is this change for the customer Little step. The Paris-Rome trip day is always charged around 900 euros for a service revised downwards. By reducing the benefits to adapt to competition and to increase their fixed costs, companies confuse two problems and what difference does a customer make between a "regular" company and a low cost Almost no, because their image confused on certain destinations, but not the price to pay. Perhaps this is the main danger that run the major airlines in Europe: the image blurs with Ryanair and EasyJet. Why, therefore, pay more, even if the low-cost rates are not as competitive The real challenge now facing European companies is to reduce the weight of loads, to lower tariffs without putting the company at risk. Unfortunately, this flexibility is hardly practicable medium long-term. Can just break the price on a line for a few months to get a new competitor. This escalation of a new type is far from over. The low cost multiply and set leaders apart, they are likely to suffer quickly a phenomenon of overcapacity entirely inconsistent with their economic model. Unlike their elders, they were detected very early that risk, which says that negotiations are underway to create "alliances," which would allow companies, not directly competitive, of to support, mainly through exchanges of good processes on their sites for sale. One way as another reminder that new ideas are not default.
The example in the automotive industry
European airlines must go further and track down all the sources of internal and external costs. As has been done, for example, in the automotive industry us and European, yet protected by tariffs, hard competition by Japanese manufacturers. One example among others, in Renault, the arrival of Carlos Ghosn, late 96, was not good news for the former Board suppliers, who have been asked to reduce their prices over three years of 20.
Can air escape such restructuring Fortunately, the aircraft manufacturers offer more efficient aircraft, source of significant operating savings (cockpit two A320-A340-A380 family). The salaries of pilots are high, but they do not explain alone, at least in Europe, drift costs. Even more than the low-cost practice a policy of wage at least as generous as their conventional competitors, motivator of staff, who, on the other hand, more works. If companies have acquired some experience in the management of their fleets, there is much to do in the services and activities related to air transport. Reduction of costs in the airline begins with a rationalization of the means on the ground (airports, sales, commercial and administrative management). It will be difficult to move from the outsourcing of some services and relocation of other. A few days ago, the President of US Air, David Siegel, assured that "the traditional airlines will disappear if they do not dramatically reduce their costs and are not reorganizing. In addition to competition from low cost, some predict a return in force in Europe for the American companies attacked by low cost on the servant with very aggressive policies flights and tariffs. In the United States, domestic traffic penalty to restart; It is increased by 0.7 in February, while international traffic increased by 9.1. The dramatic increase in the fuel will darken the already dark table: Merrill Lynch provides now, for 2004, losses amounting to $ 2.2 billion against a forecast of losses "only 600 million".
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Savings in Lufthansa plan
After a record loss of 984 million euros in 2003, Lufthansa has set to return to the Green this year, continuing a severe program savings. The return to the green in 2004 should primarily be a result of a savings program launched last year, which provides for reductions in cost of EUR 1.2 billion by end of 2005. On the 430 million euros of planned economies for the only fiscal year 2004, Lufthansa in already completed 234 million by reorganizing its system of sales via travel agencies.
The staff of the company, which has already had to agree last year to a prolongation of working time without wage compensation for staff on the ground, will still be contribution. The company plans to reduce 105 million this year its personnel costs. The hiring freeze, enacted last year, should continue, while Lufthansa is currently negotiating with representatives of the staff a wage settlement. Diving in the Red of the company in 2003 is explained mainly by a truth about accounts operation, leading to severe impairment of assets, including on the deficit subsidiary of LSG SkyChefs catering, in which 8 000 jobs have been removed. Lufthansa has also leaded by the results of the Thomas Cook tourism group, it holds on a par with the German leader of stores, KarstadtQuelle. Lufthansa will shed part of its subsidiary of restoration, activity leader Solutions, specializing in the manufacture and marketing of dishes prepared in the United States.
Furthermore, the airline will increase on April 1 its share in the regional carrier Eurowings to 49 against 24.9 currently.
