According to Lundgren, the easyJet network mainly overlaps with the major airlines in Europe. That is why easyJet will focus less on the competition with budget airlines such as Ryanair.
The corona pandemic has caused enormous damage in the aviation sector. The old national airlines are expected to recover more slowly as they are more focused on business travel and short flights to collect travelers for long haul flights. Business and long-haul travel is expected to recover at a slower pace than the airline industry as a whole.
EasyJet competes on two thirds of its network with these established airlines. When planning the network, easyJet this year is prioritizing flights from the more expensive airports these carriers typically use, Lundgren said. He is more cautious about the opportunities arising from the crisis than, say, Michael O’Leary of Ryanair or József Váradi of Wizz Air. Both aviation bosses talk about a one-time opportunity to capture a huge market share.
EasyJet investors are also not yet convinced of the company’s future capabilities. The company’s stock price has fallen 50% in the past twelve months, while Ryanair and Wizz Air have made up for their previous losses.
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Boss easyJet starts ‘air war’: ‘Gain market share from KLM’ | Financial
Source link Boss easyJet starts ‘air war’: ‘Gain market share from KLM’ | Financial