British Airways and Iberia boss Willie Walsh plays a no-frills game
THE boss of British Airways and Iberia has warned that European flag carriers will have to play budget airlines at their own game to survive in short-haul air travel.
International Airlines Group chief executive Willie Walsh said the short-haul businesses of traditional airlines needed to slash costs, jobs and unprofitable routes to combat the likes of Ryanair and easyJet.
IAG has bought Spanish no-frills carrier Vueling to compete in the European low-cost market and Walsh said big rivals were likely to have to follow.
“Every airline should aim to have an independent low-cost arm,” he said at the World Low-Cost Airline Congress in London.
BA launched low-cost airline Go but sold it to private equity group 3i in 2001 after it under-performed.
Earlier this year, Air France-KLM formed a new French regional airline called Hop! to take on budget rivals, while Lufthansa is transferring domestic and European non-hub flights to its low-cost arm Germanwings.
Walsh said IAG was unlikely to make further big acquisitions in Europe after buying Vueling, focusing instead on opportunities further afield.