Ryanair launches Kiev flights; we look at the Germany – Ukraine market
Ryanair Düsseldorf Weeze to Kiev Borispol
Ryanair on Sunday 20 October launched twice-weekly (Thursday and Sunday) flights between Düsseldorf Weeze (NRN) and Kiev Borispol (KBP). The route has no direct competition, while the city-pair sees Ukraine International Airlines operate a daily service from Düsseldorf International. Wizz Air also operates a three-weekly service from Dortmund to Kiev Zhulyany (IEV).
Looking at the German – Ukrainian market, average fares are high despite an increasing low-cost presence.
Despite the reasonably short distances, average fares are relatively high between the two countries mainly because it is still dominated by FSCs. In 2019, Lufthansa and UIA have a combined 54% of total seats. However, UIA in particular has suffered in fare performance, with a five year declining trend from $115 to $95. This is partly from the growing strength of LCCs, with Ukraine – Germany now led by Wizz Air. And it is despite increasing fuel costs and economic headwinds.
Although Ryanair does not submit MIDT data to OAG, their system-wide average fares foreshadow the carrier’s likely impact between Düsseldorf and Kiev. In comparison to UIA, it will hold a cost advantage from operating from Weeze. This, and its well-publicised cost leadership, will enable it to target the most price-sensitive customers who previously flew UIA or travelled by coach. Its average fare is consistently more than 50% lower than UIA’s, and although this is system-wide we expect notable demand stimulation on the route.