German airlines will struggle to remain competitive

Significance

This will be the 14th strike in the pilots' wage dispute since April 2014. With foreign low-cost carriers (LCCs) building a presence inside the German market, the country's airline industry is facing difficult times.

Impacts

• Overcapacity combined with slow global growth will continue to hit Lufthansa's airfreight division.
• Ryanair and EasyJet's single-model fleets give them cost advantages over legacy carriers.
• Air France-KLM will struggle to match LCC competition unless it addresses fundamental efficiency questions.
• International Airlines Group with its LCC subsidiary Vueling Airlines is in a better position thanks to deep cost cuts.