MUFC_fan
24th Sep 2008, 20:34
Ok...
We saw the terrible attacks in 2001. However, as horrible as it sounds, it was like the atomic bombing hitting Japan for the airline industry or the IRA in Manchester. The airlines have grown extremely quickly after the attacks and have never looked back - until now.
We are currently seeing airlines falling quickly from the skies - some huge - some not so - are we seeing the final phases of the transition the aviation industry started in the late 1990s?
easyJet and Ryanair have turned aviation on it's head in Europe and have changed how we fly forever. They are two of the biggest, most powerful and influencial players on the Europen 'circuit.' How have they done this in such a short time? Price.
Its simple economics except reversed. easyJet and Ryanair CREATED their customer base. 15 years ago would you have travelled to Dublin for the same price as a penny sweet (if they still exist!)? They have sort of put out a message -"we have the cheap flights - come and get us." We duly obliged.
Due to the rise in demand for travel we have seen a massive rise in the price of fuel for which the aviation industry has cotributed. Airlines are trying to find the perfect balance between their top and bottom lines -some have found it, other havn't.
Airlines are falling, others are benefitting from it.
So - what can we expect to see in the coming twelve months? What I think:
1. Fall of more 'weak' airlines
2. Rapid growth of airlines such as easyJet and Ryanair who are capitalising on the bust airlines
3. Ryanair to launch long haul
4. BA/AA/IB to become an even bigger player and smash the Atlantic (both north and south) wide open.
5. More consoliation between many legacy carriers
What do you think...
We saw the terrible attacks in 2001. However, as horrible as it sounds, it was like the atomic bombing hitting Japan for the airline industry or the IRA in Manchester. The airlines have grown extremely quickly after the attacks and have never looked back - until now.
We are currently seeing airlines falling quickly from the skies - some huge - some not so - are we seeing the final phases of the transition the aviation industry started in the late 1990s?
easyJet and Ryanair have turned aviation on it's head in Europe and have changed how we fly forever. They are two of the biggest, most powerful and influencial players on the Europen 'circuit.' How have they done this in such a short time? Price.
Its simple economics except reversed. easyJet and Ryanair CREATED their customer base. 15 years ago would you have travelled to Dublin for the same price as a penny sweet (if they still exist!)? They have sort of put out a message -"we have the cheap flights - come and get us." We duly obliged.
Due to the rise in demand for travel we have seen a massive rise in the price of fuel for which the aviation industry has cotributed. Airlines are trying to find the perfect balance between their top and bottom lines -some have found it, other havn't.
Airlines are falling, others are benefitting from it.
So - what can we expect to see in the coming twelve months? What I think:
1. Fall of more 'weak' airlines
2. Rapid growth of airlines such as easyJet and Ryanair who are capitalising on the bust airlines
3. Ryanair to launch long haul
4. BA/AA/IB to become an even bigger player and smash the Atlantic (both north and south) wide open.
5. More consoliation between many legacy carriers
What do you think...