LOW-COST carriers will not kill off charter airlines despite some very effective propaganda, according to Avro chairman Fabio Mantegazza.
In a scathing attack on the no-frills airlines, he said they had done an excellent propaganda job to make people believe the charter market was doomed.
“They are putting millions of pounds behind trumpeting their difference and building new perceptions in the minds of consumers,” he said.
“They have created the perception that they are bringing something totally new and revolutionary to low-cost leisure travel markets, and that they are unstoppable, but they have still to show that they can become and remain consistently profitable.
“The charter industry has an excellent track record and can rightfully claim to have successfully developed low-cost air travel long before the concept was dreamed of even in the US,” he added.
Mantegazza also dismissed claims that low-cost carriers brought something new to the seat-only market. “The two currently engaged in the market fly from the wrong airports and will find it hard to drag existing customers away from the preferred airports,” he said.
“Given the prevalent climate of intense competition, there is also little opportunity for low-cost carriers to establish evident price advantage.”
Mantegazza admitted that the challenge from low-cost carriers could not be ignored.
“There is no room in the market for them, but Idoubt that is going to stop them,” he said.
“Complacency and inertia will make it easier for them to make important inroads into this market. At Avro, we take this challenge very seriously.”