European airlines will have to cut costs at existing short-haul businesses to compete with budget airlines or struggle to stay aloft, IAG boss Willie Walsh said.
So-called legacy carriers such as IAG, Lufthansa and Air France-KLM are cutting jobs, renegotiating staff contracts and dropping uncompetitive routes to get costs on a par with budget carriers, such as market leaders Ryanair and easyJet.
They are also replacing older, fuel-thirsty planes and streamlining back-office operations.
“We’re focused on reducing out cost base and making our short-haul business more efficient … those that don’t will struggle to survive,” Walsh said on the sidelines of the World Low Cost Airlines Congress in London on Tuesday.
“We have Vueling and I think every airline should aim to have an independent low cost arm.”
Chosen excerpts by Job Market Monitor. Read the whole story at
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