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European airline competition reaching the boiling point

Even though the environment has changed dramatically, airlines in the US are a pretty calm and respectful bunch. New airlines come (and go), and their competition is limited to copying each others routes and prices. Very rarely will you hear airline A call airline B anything nasty.

In Europe, things are different - very different. Competition in Europe is cutthroat, and this doesn't always end up benefiting travelers.

Take for example Ryanair - this airline has become one of the largest (and cheapest) in the world. The airline is rude, charges a fee for everything you do, and is proud of their lack of customer service. But when you can fly across Europe for $20, you forget all of that.

When Ryanair approached Manchester airport requesting they lower their airport passenger fees, the airport refused. Normally, this would be the end of the story, but Ryanair does not take too well to being told "no" to anything, so they are moving all their flights out of Manchester, and moving them to surrounding airports. The stubborn airport will now lose 40 flights a week, 600,000 paying passengers and most likely 600 jobs.

A similar situation is taking place in The Netherlands, but this one is between two airlines and an airport. EasyJet is furious that KLM cut a deal with Amsterdam airport to lower the airport passenger fees for transiting passengers.

Passengers on KLM flights arriving at Schiphol, and transiting to another KLM flight only pay $18. Passengers on EasyJet who arrive at Schiphol as their final destination, pay $40. Even though both passengers use the exact same facilities, the KLM passengers pay much less.

The two airlines and the airport will be facing each other in court, but it is going to be a tough battle, EasyJet is a foreign carrier, and KLM is the Dutch national pride. But once again, the airport better watch out, because after KLM, EasyJet is the largest airline at Schiphol, obviously giving them quite a bit of power. Losing all those flights would put a huge dent in their income.

Filed under: Business, Europe, Airlines

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