Manx2

[EI-BUD]

Passenger Numbers at IOM

Hi Hansol,
I was reading your post above. I have heard a fair amount of negative feedback on the subject of passenger numbers from the IOM over the past few months. Below is a summary of the annual passenger figures for 02,3,4,5 & 6.
729255, 748103, 773743, 806656, 789155
2002 2003 2004 2005 2006

To be fair to airport the numbers have been growing since well over the last few years with the exception of 2006, but it is not fair to compare 2006 to 2005. 2005 was an exceptional year, with price wars mainly between Euromanx and Aer Arann. Euromanx went through a very rough period financially, on the competing routes it is most likely that neither airlines made alot.

So as regards the comment " only one fundamental problem" is declining passenger numbers , I would say to this that the airlines must make a profit to survive, and more seats does not mean more profit , its the price that they can get for the seats. 2006 was probably a much more profitable year for most IOM routes than 2005.

when you say investors need deep pockets , you are right , but thats the airline business for you. Having the cash resources to withstand highs and lows and exceptional stuff. The challenge for the IOM airlines ie Euromanx and manx2 is to keep costs low and margin at an acceptable level , personally I feel that they need to look at other markets that dont involve the IOM to spread there risk. I realise that Euromanx ventured to Galway last year and it proved costly. However, there are opportunities out there for regional operators. Furthermore , expansion brings to a large extent better unit costs. Such will be the case at Flybe when it merges BA Connect into the business.

I would have concerns about Flybe in the IOM. They are renegotiating there contracts with all airports. If they decided to invest a bit into promotion at the IOM, coupled with some volume deal with the airport, they could do harm. Probably more effecting Euromanx. And as you mentioned 'deep pockets', Flybe will be in a far better position.

Nonetheless I am not sure how soon Flybe will be ready to expand markets like the IOM. But there is a much quicker win at airports like the IOM for them than at some that will provide much low cost competition such as BRS and MAN(examples)

What does anyone think about FLybe and IOM?

Do you believe that IOM airport will give a better deal to Flybe or do you think they will offer same as fees as other airlines? Are they worried about future or are they comfortable that Flybe could be replaced if they left?

Hansol, I can see you point of view but I think we need to look at the big picture. Do you know if Manx2 are connected to Jet2 , I think I read before of some connection?