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Showing posts from August 16, 2011

Aer Lingus; No Business Case for US West Coast Route ©

Aer Lingus yesterday quashed speculation of the carrier resuming a route from Dublin to the US West Coast after completing an analysis, stating it would result in significant losses, in the present environment the business case for opening the route does not simply exist, therefore it was a prudent management decision. The market dynamics for resuming a route from Dublin to the US West Coast have changed significantly since the carrier axed the San Francisco route in 2009, firstly the average cost of oil continues to increase, now will be a higher percentage of total costs on long-haul sectors. The Irish and US economies have gone into recession as a result of the global financial crisis, which began in 2008, both countries plan to reduce spending and Ireland will have further tax increases as part of the EU/IMF Bail out programme, which will have an impact on the population, reducing disposable income for leisure travel, with high unemployment in the economies, this will further erod