When “low cost” becomes “indignity”

The pressure of the raising of oil prices has forced air carriers to increase prices, or, for “low cost” companies to try aggressive campaigns with customers or local tourism authorities.
So, last week, Ryanair’s vice-president spoke with an arrogant threatening speech to the Catalan Government announcing the cancellation of fairly the 40% of the flights from Girona, even if they had a high rate of bookings (over 70%), just because the Catalan Government wasn’t negotiating fast enough.
The response of the Catalan Government has been to offer these slots to other local companies that would operate them without expecting the high funding costs that Ryanair requires to the government.
In a market economy funding air companies should be a strategy to launch a new air destination, but never to maintain the activity in a consolidated one. Ryanair arrived to Girona fairly a decade ago and the majority of their flights have a very high rate of occupation. It is unfair that they expect to function still with public funds.
Ryanair vice-president has to prove that the company can make business in a real market economy. They are a strongly subsidized company that as a response is mistreating customers with illegal extra-charges, and with a poor customer relation.
When things come to this point we must ask ourselves if this is sustainable tourism? Nor is it responsible tourism.
The dignity of customers should be protected by local, national and European authorities and in the case of the “low cost” air companies, this is not the case.
As stated by the Spanish consumer association FACUA Ryanair is the company with more complaints from its customers, while the reaction of the governments is very passive.

About Oriol

Professor dels Estudis d'Economia i Empresa de la UOC Lecturer of the Department of Economics and Business Administration Universitat Oberta de Catalunya - Barcelona- Spain
This entry was posted in Open Thought, Tourism and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s