Long haul issues
I think we are going to see a lot more changes and not all will be good for EI; I don't think EI will be fatally damaged by FR, but I do worry about the long haul issue. I don't believe
What I do believe is of more immediate concern to EI is what happens after next month, if (hopefully when) the govt gets the green light for expansion in US markets; this IS very much a double edged sword for EI, in that airlines which previously flew "one for one" will now feel pretty silly not to take full advantage of the new regulations, especially since they can use ETOPS 757s on Irish routes. That's going to result in a lot more competition; EI needs to make sure it can get its service product right and it needs to be ahead of the game - not just in quality, but in anticipating changes, such as long haul, low cost. Routes between Ireland and the US are going to get an awful lot more crowded and that's only next year, if (as anticipated by last year's deal) they start with 3:1 and then move to total Open Skies from 2008.
EI currently has the lowest CASM (cost per available seat mile) of any t/a airline, but a lot of that has been the result of zero spending on its service product during that period and that has to change, but it needs to develop a product which will not only be good, but which will dissuade other carriers (particularly MO'L's long haul) from following it into a new market. I think EI needs to start sooner rather than later with a new LH-loco product and for that, it needs to get the most economical aircraft available? How does an 8 abreast 330 compare to a 10 abreast 777?