BUSINESS NEWS
Fritz Joussen: ‘No doubt consolidation will happen’
Joussen tips Europe’s airlines to consolidate
Tui boss highlights overcapacity in a ‘challenging’ market. Ian Taylor reports
Tui chief Fritz Joussen insisted Europe’s airlines will have to consolidate as he became the latest industry leader to highlight the overcapacity in the market. Joussen reported Tui’s results for
the three months to June last week, saying: “Tere is a lot of competitive pressure with airlines. Consolidation will happen sooner rather than later.” A growing number of airline bosses
have issued warnings, with Ryanair chief Michael O’Leary forecasting “a
64 22 AUGUST 2019
very difficult winter” this month and warning: “Tere will be failures.” Joussen described the airline
market as “very challenging”. Te competition is toughest in Germany where the collapse of Air Berlin in late 2017 failed to remove capacity. Instead, easyJet took over Air
Berlin’s operations in Berlin, Luſthansa acquired its fleet at Dusseldorf and Ryanair acquired former Air Berlin subsidiary Niki in Austria, rechristened it as Lauda and is
expanding it rapidly. Joussen noted that in the three
months to June: “All airlines in Germany lost €500m-€600 million. Te pressure is so big, airlines can’t translate costs into prices.” He said: “Air Berlin was a
failure, but it was backfilled. When competitors exit the market, we need to let the market clear. Air Berlin
Continued on page 62
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BUSINESS NEWS
PICTURE: Rudiger Zehmzow
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