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Showing posts from February, 2012

Ryanair Vs Airports: The Supply Chain Battle ©

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Ryanair announced on Tuesday 21st February that it was not proceeding with plans to launch four new routes from it's Edinburgh Base which it announced a few weeks ago citing being unable to agree a competitive cost base, as a result it is reducing the base fleet from 7 to 6 Boeing 737-800s.
However deeper analysis suggest that the carrier may be leveraging its position at Edinburgh as the BAA narrows the bidding process into the second round of bidders ahead of the sale as directed by the Competition Authority.
The airline indicated it may reduce the base fleet further in the winter as negotiations continues to extend the five year base deal from October 2012, and in the medium term hinted that RAF Leuchars could have potential as a joint civil-military airport.
Thus the carrier has flexibility to deploy the aircraft where they can earn the highest rate of return (Existing or New Bases), as the model matures like Southwest Airlines, they will use a mix of primary and secondary airp…

Aer Lingus Sale: A Step closer ©

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The sale of Aer Lingus moved closer as yesterday after months of speculation the government announced that it would dispose of its remaining 25% stake in Aer Lingus as part of the disposal of state assets under the Torika agreement. The government indicated there would be no fire sale of stake stating it would be when market conditions were favourable and at an acceptable price.
Aer Lingus becomes the latest EU flag carrier to join the growing list of mid-sized carriers for sale as the Czech Government wants to open an tender for the sale of CSA Czech Airlines, the Cypriot government has indicted it wants to sell its 86% stake in Cyprus Airways to a strategic investor, while the Polish government aims to privatise LOT Polish Airlines by the end of the year.
Portugal’s national carrier TAP-AirPortugal is to be privatised under the terms of their Torika Bail-out, the competitive pressures on Finnair mean the Finnish Government is considering reducing its shareholding to give the carrier …

Dublin Airport A Stimulus Plan ©

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The Irish Financial crisis of 2008 and subsequent recession which caused an economic contraction of 14% has an adverse impact on air travel demand coped with cost inflation from the €3 Air Travel Tax & the increased DAA pricing introduced in 2009 to fund airport develpments. Since the downturn began in 2008 traffic at DublinAirport has collapsed from its peak at 23.5 million passengers to 18.8 million passengers in 2011, with corresponding loss of 4,500 direct jobs at the airport.

The loss of 4,500 jobs can be directly correlated to the loss of passenger traffic as 1 million passengers =  1,000 jobs (ACI ) accordingly per 1 million passenger decline would lead to the loss of 1,000 jobs.The closure of SR Technics Ireland Ltd operation in 2009 with the loss of 1,200 jobs although some of these have been recovered through new jobs in Aer Lingus Ireland, Dublin Aerospace, Eirtech, M50 Limited.

Therefore a new stimulus plan is now required to restore DublinAi…

Irish Airlines Report January Traffic ©

Aer Lingus announced that it carried 563,000 passengers in January up 6% with a load factor of 62.3% up 0.1%. The airline carried 49,000 long-haul passengers up 2.1% with a load factor of 61.8% down 3.9% and 514,000 short-haul passengers up 6.2% with a load factor of 62.5% up 2%.
The Aer Lingus Regional Franchise operation carried 53,000 passengers up 26.2% and as usual the figures exclude traffic on the UAL Washington Dulles-Madrid JV route. Aer Lingus Regional is to base a second ATR72 in Shannon from the 26th of March and increase frequencies from its Cork and Dublin Bases and launch a new route from Dublin to Bournemouth.
Ryanair announced that it carried 4.39 million passengers in January down 6% with a load factor of 71% and in the rolling 12 months to the end of January it carried 76.2 million passengers.
The carrier flagged the reduction due to the 80 parked Boeing 737-800s but the passenger number should improve with the opportunities to place a number of the parked aircraft …