Air Wars - the price battle between low-cost airlines in Prague
As the Czech tourist industry grows more successful by the year, the air transport business is likewise becoming all the more lucrative. Low-cost airlines are now operating from Prague International Airport in increasing numbers, and with this rise in popularity comes the inevitable competition for customers, with companies drastically reducing air ticket prices in an attempt to entice clients to their airlines. Chris Jarrett takes a closer look at Prague's airfare battle.
"Basically Air France has taken a new look at reviewing its pricing. We are currently offering the lowest fare based on the earlier you book the best fare you can find. You know today we are offering 2000 crowns as the lowest price every day and clients are somehow used to booking a long time in advance. We will look at the price war between Smart Wings and SkyEurope and maybe we will adapt our pricing strategy, if it is necessary, to Paris. We are looking at low-cost flights with very high consideration but at the same time we also have to manage not just the Paris lines but on a worldwide network as well."
The radical reductions in price could have a significant impact on the airline business in the future however. Froidure explains why:
Indeed the increase in popularity of Czech air travel could have other effects. The capacity of Prague Ruzyne Airport has been reaching its limits in the past few years, and further development will have to be considered in the future to cope with increased air traffic. Besides the recently constructed North 2 Terminal, there are plans to add a new 3.5 km runway, which will lie 1.5 km south-east of the main runway. At an estimated cost of 5-7 billion crowns, we can only wait and see what future effect this has on Prague's air wars.