Thomas Winkelmann, CEO of the German low-cost company GermanWings, said Ryanair is not likely to last because it does not attract the corporate market. Winkelmann spoke for Travelmole saying the more Ryanair flies to an airport, the higher losses it has to sustain. This is not the first time Ryanair’s business model is questioned and won’t certainly be the last.
“I think the Ryanair model is coming to an end. The more Ryanair flies to a destination, the more losses taken by the airport and the local tax payers wont stand for that,” said GermanWings’ boss.
Winkelmann made the statements while he was in the UK to promote a new GermanWings route, between Manchester and Cologne/Bonn. According to him, the economical and financial crisis provided low-cost carriers an opportunity to grow and expand, making travelers more price sensitive and class differences irrelevant.
“Travellers are acutely aware of the whole cost of a trip and do not want to fly from nowhere to nowhere, having to pay for car hire on top of the flight. That deters both leisure and business travelers,” he added.
GermanWings will not have 3 UK destinations, including the new Manchester route. It flies from Cologne and Stuttgart to Stansted, from Cologne to Edinburgh. More than 50% of their tickets are sold in the UK, despite the fact that they’re not that well known. GermanWings also recently announced a profit increase for this year, despite a generalized decrease in airline traffic.
