Showing posts from 2011

Happy Christmas to all my readers

     I would like to wish all my readers a Very Happy Christmas and Prosperous 2012                                                                     

Germanwings Irish Promotional Video ©

Germanwings is promoting ‘The Green’ tourist product of Ireland, following on its announcement on the 19 th of September it was increasing capacity on the Cologne/Bonn-Dublin route by 25% for Summer 2012 with an additional weekly frequency being added to the schedule, for a total of four weekly flights (TravelDaily News 19 th September 2011). The carrier is taking part in co-operative marketing with Tourism Ireland. It will be interesting to see how the Germanwings brand develops in the Irish market in the context of the new Germanwings/Lufthansa co-operation announced on the 14 th of December. Their could be the potential to add routes from Hanover and Stuttgart at some future point. Interestingly in 2004 the airline intended to launch Stuttgart to Dublin but it not proceed as Hapag Lioyd Express where operating on the route. Summer 2012 will see a significant increase in capacity between Germany and Ireland Aer Lingus is to increase frequency on Dublin-Stuttgart from four to five

Irish Airlines Report November Traffic ©

Aer Lingus announced that it carried 768,000 passengers in November up 8.8%, with the airline carrying 75,000 long-haul passengers up 4.2% with a load factor of 75% up 3.1%. The airline carried 624,000 short-haul passengers up 7.4% with a load factor of 75.6% up 3% and its Aer Lingus Regional Franchise operation carried 69,000 passengers up 30.2%.These figures as usual exclude passengers carried on the United Airlines Washington Dulles-Madrid joint-venture route. Ryanair announced that it carried 4.68 million passengers in November down 8% with a load factor of 80% and in the rolling 12 months to the end of November it carried 76.7 million passengers. The 8% reduction, is an improvement on the 10% flagged reduction in passenger numbers as a result of the carrier parking 80 Boeing 737-800s. Ryanair is to expand in the Irish Market for summer 2012 with the airline to launch a new route from Pisa Florence to Cork operating twice weekly from April 2012 and four new routes from Bergamo , Be

The tale of two airports: Charleroi Vs Cork ©

  Charleroi Airport The Ryanair CEO Michael O’Leary “ Airports are in competition with each other across Europe . Ryanair doesn't really care whether the airport is in Charleroi , Barcelona or Manchester " (IN FOCUS: Changing role for airports 25 th November). The Ryanair CEO reiterated this statement with the half year results, stating that 100 existing airports served and 30 new airports where competing for business for new bases and routes. The Aer Lingus CEO Christoph Muller stated he would back the sale of Cork and Shannon airports, as it would be a 'Moment of Truth' in terms of their business case (Irish Indepedent 1st March 2011). Therefore the outcome of the Booz and Company review of Irish airports which is expected to be completed in the next few weeks will lay the basis for a new airport policy, which is expected to transform Cork and Shannon airports in an increasingly competitive airport environment. T he Transport Minister Leo Varadka

Ireland West Knock Airport goes from strength to strength ©

Ireland West Knock Airport is set to go from strength to strength in 2012 as Flybe extends its new launched Manchester route to all year round, Lufthansa launches a new weekly service to Düsseldorf and Ryanair is to add four new European routes. The new Ryanair routes are expected to boost traffic by 10% Irish Times (21st November). Ryanair announced that it is to launch four new routes commencing in March 2012 from Barcelona Girona, Frankfurt Hahn, Milan Bergamo and Paris Beauvais. The four new routes are expected to generate 500,000 passengers creating 500 new jobs in the Mayo region Belfast Telegraph (21 st November)   The airline with Tourism Ireland is targeting inbound tourism from France , Germany , Italy and Spain , which is expected to generate €23 million for the local economy ITIC (21st November). The Minister for Tourism and Sport Michael Ring stated “This is a very positive development from a tourism perspective and will provide greater ease of access to the we

Ryanair: Future growth driven by airport deals ©

Ryanair indicated in its half-year results that future growth will be driven by the best airport deals which will be opportunistic, as another wave of airline consolidation begins to take hold across the European airline sector, as the Euro debt crisis further erodes economic activity coped with high fuel costs. The Ryanair CEO Michael O’Leary revealed that the airline is currently talking to thirty new airports not currently served by the carrier Ryanair Conference Call (7th November), after indicating in September Central Europe and Scandinavia will be the focus for expansion in the next two to three years Bloomberg (4th October). The airline indicated its average sector length will decline as Central Europe and Germany will be in focus. The Ryanair CEO Michael O’Leary indicated airports in Germany where offering ‘Exceptional Deals’ in the aftermath of the Air Berlin ‘Shape & Size’ re-structuring plan, as regional airports will lose flights and routes Ryanair Conference Call (7th

Dublin Airport: The Ancillary Revenue Potential ©

 The line of aircraft on runway 29 for the UEFA Cup Final                                                                       The ACI DG Angela Gittens stated “Non-aeronautical revenues critically determine the financial viability of an airport as they tend to generate higher profit margins than aeronautical activities” (Insight airport world June 2011). This blog article will examine the potential of Dublin Airport to grow new ancillary revenue streams. should be realized in the current environment, as core traffic continues to fall, now is the time to develop new revenue streams utilizing existing infrastructure, taping into Meeter and Greeters, local residents and visitor’s market segments. Therefore there are potential opportunities to develop new ancillary revenue streams adding value to the existing customer offering, firstly the airport should considering developing aircraft viewing facilities in Terminal One, following the successful model developed by Frankfurt Main

Irish Airlines Report October Traffic ©

Aer Lingus reported a 1.6% increase in traffic with the airline carrying 907,000 passengers with a load factor of 78.5%, with 831,000 short-haul passengers with a load factor of 81% up 2% and 76,000 long-haul passengers down 1.3% with a load factor of 73.1% up 2%. The Aer Lingus Regional franchise operation carried 69,000 passengers up 30.2% and year to date up 101% to 656,000 passengers. Ryanair announced that it carried 7.27 million passengers in October up 4% it’s load factor at 84% down 1% and year to date it has carried 77.1 million passengers. The Ryanair CEO Michael O’Leary stated when announcing Q3 results that November traffic would fall by 10%, as result of the carrier parking 80 Boeing 737-800s for the winter RTE (7 th November 2011). Aer Lingus stated in its Q3 IMS Statement (3 rd November) ‘Continuing Weakness on certain leisure routes from Ireland’, and this morning on the Newstalk Breakfast Business Show the Ryanair CFO Howard Miller stated demand from Ire

Irish Aviation Policy: Setting A New Course ©

The new Irish Government which was elected on the 25 th of February made tourism a key element of its Programme for Government, recognizing the aviation can play a key contribution to recovery, with new policies which will set a new course for the aviation sector reversing the loss of competitiveness. The new Transport Minister Leo Varadkar has achieved a number of objectives as set out in the Programme for Government with the launch of a new Tourism Marketing Fund which was announced on the 14 th of October collaborating with Aer Arann, Aer Lingus, Etihad Airways, Emirates Airlines, US Airways using revenues from the air travel tax Merrion Street (October 2011), and a new short-stay Visa Wavier programme to tap growth from emerging BRIC economies Irish Times (July 2011). In tandem with the initiatives announced above the government job initiative introduced a new low VAT rate of 9% for the tourism sector KPMG (May 2011), and the Dublin Airport Authority announced a new rout

The end of an era on the Dublin-Cork route ©

Passengers boarding RYR9842                                                                The end of an era in domestic in air travel took place last Saturday the 30 th of October when Ryanair operated its last Cork-Dublin flight, bring to an end a route with a long history having commenced by Aer Lingus in the 1960s. This route has seen a wide of airlines and aircraft types operate the route, through the years which enabled efficient travel times to Dublin, in the absence of adequate of ground based transport which did become available until the Celtic Tiger era.                                                            EI-EFK Boeing 737-8AS being prepared for final Dublin Departure On Saturday RYR9842 EI-EFK Boeing 737-8AS crewed by Captain Pat Moran and First Officer Kevin Quinlivan, and four cabin crew members lead by CCM Susan welcomed the 30 passengers on-board. The aircraft pushed back off stand at 1739 becoming airborne off runway 17 at 1745 routing over Co

Manchester Airport Growing Irish Connections ©

This week has seen the Manchester Airport Irish connections grow considerably despite the UK APD tax and weak economic conditions in both countries, with Easyjet launching a new route to Belfast operating double daily and Flybe launch a new route to Ireland West Knock operating four times weekly, Ryanair opens its 45 th European Base today with two Boeing 737-800s operating 26 routes with the base fleet to increase to four units for Summer 2012 with further expansion planned. Interestingly it was citied by Routesonline (27 th January 2011),it was citied the Dublin Manchester market is almost 600,000 passengers according IATA BSP data. Ryanair's base expansion will see it increase frequency on the Dublin route to 21 times per week (Four to six daily) using a mix of Dublin and Manchester based aircraft InsideIreland (26 th January 2011). The Irish airline connection with Manchester goes back 62 years to when Aer Lingus first launched a route from Dublin which has evolved over the

Aer Lingus Increases Dublin London Gatwick Capacity ©

Aer Lingus has announced that it has increased capacity on the Dublin to London Gatwick route by 56%, with the carrier adding two additional daily rotations for a total of six daily rotations which commenced on the 19 th of October (Aer Lingus website), with new early morning departures at both ends of the route, providing higher frequency with a wider range of timings, which will be particularly attractive to business traffic. The increased London Gatwick route capacity increase is consistent with its demand-lead strategy, as the carrier re-deploys capacity from Southern Europe to Northern Europe (Investor Day Conference Call 28 th of September), where their is an increased business traffic mix. Aer Lingus has been winning back market share in the key London market with the carrier having market share of 45% in 2010 up from 39% in 2009 (Flying in Ireland April 2011), having product differential in the market with roll out of new fare pricing structure, participation in GDS,

Emirates Airlines Dublin Route Ambition ©

On the 8 th of September Emirates Airlines announced that it was launching a new route from it’s Dubai Base to Dublin commencing on the 9 th of January 2012 operating daily using an Airbus A330-200, becoming the 29 th European City on its route network (Emirates Airlines). On the 21 st of September the carrier announced that it was seek to fill 17 job positions at its new Dublin station being set up, including cargo and passenger roles (ITTN), the carrier was looking at options to serve the IT package market (ITTN). It was citied by Routes online (8 th of September) that the 54,000 Origin & Destination passengers travel annually between Ireland and the UAE, with 10% of this market currently flying via Emirates Airlines UK routes, the carrier could potentially capture O&D traffic connecting via European Hubs. On the Breakfast Business Show with Ian Guider on Newstalk 106-108FM (Thursday 20 th October). The Emirates Airlines VP UK & Ireland Laurie Berryman stated when t

Lufthansa Expands Irish Route Network for summer 2012 ©

Lufthansa is to expand its route network into Ireland for summer 2012 with the carrier launching two new routes from its Düsseldorf Base to Dublin and Ireland West Knock Airport , in addition to restoring its seasonal Munich to Dublin route. The German consumer confidence is strong, on the back of economy growth of 3.6% (Tourism Ireland ) which is driving demand for air travel. The new Lufthansa Ireland West Knock route will carry 2,000 passengers generating €1 million in revenues, annually over 200,000 Germans visit the West of Ireland, with Ireland West Airport confident that Lufthansa will continue to grow its operation beyond 2012 with increased capacity and new routes (Anna.Aero).      Germanwings is to increase capacity by 25% on the Cologne/Bonn to Dublin route for summer 2012 increasing frequency from three to four flights weekly (Germanwings). The German market is the third largest travel market inbound with 380,000 German tourists visiting Ireland in 2010

Air Travel Crucial for Irish Economic Recovery ©

                         Air Travel will play a crucial role in the recovery of the Irish economy playing a valuable role to drive inward Foreign Direct Investment, and enabling Irish companies to grow export markets, with the economic expected to grow by 1.8% in 2012 (Irish Central Bank) . It was citied in the research of Ishutkina that between 1985 and 2005 the average growth rate of the airline sector in Ireland was 17.1% ,almost triple the GDP rate of 6.1%, as a result of EU liberalization packages opening up the market. Therefore the key to unlocking the growth of the aviation sector will be further liberalization of the market by creating a competitive cost environment with airport infrastructure, and expanding open skies agreements. The air transport sector is a key connectivity tool enabling movement of capital, knowledge, opportunity, people, resources and skills; it impacts on the economy directing creating jobs and indirectly i.e. for every 1 million passengers