The prospects of Aer Lingus and Ryanair securing very attractive new aircraft pricing in the next 18-24 months have improved considerably as cracks begin to appear in the current aircraft order cycle as industry pressures begin to mount, it will be interesting to see will the carriers be able to secure similar deals to those after 9/11 when both carriers placed orders enabling them to widen the unit cost differential with competitors can they repeat the trick again?
The factors: 1) American Airlines is likely to consolidate post Chapter 11 process & on-going consolidation in US Airline industry 2) Lufthansa considers freezing capacity (2011 Annual Report) 3) A recent S&P report on the European airline sector highlighted GDP/Fuel issues 4) IATA warns airlines face bankruptcy if fuel costs rise from $120 to $150 per barrel particularly in
Aer Lingus and Ryanair are ideally placed to seize new aircraft order opportunities as they arise in the next 18-24 months as both carriers are profitable and growing unit cost differential with competitors with robust balance sheets.
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