PPRuNe Forums - View Single Post - Growing evidence that the downturn is upon us....
Old 4th Feb 2008, 08:19
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Nichibei Aviation
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Moderator,

you don't have to buy everything the media tells you.

Politics are manipulating the media to lower the prices of houses, to make you live in fear etc,...

The airlines aren't buying this and what proves it best is that in January, Airbus and Boeing have booked strong orders again, more than the 2007 average monthly orders.

The problem is in the USA and nowhere else.
The airlines there are doing bad... but that's a political problem.
Since Bush came to power the US economy is in bad shape, with fuel prices rising 80%, the dollar dropping 70% over the Euro and the Japanese Yen.

MOL's "no fuel surcharge" policy was a pain in the ass for Ryanair (and MOL said it himself, "fuel costs lowered their profits") when the oil struck the 100$ barrier, while other carriers adapted by applying surcharges, which is why carriers like Swiss, Air France-KLM, Lufthansa and Brussels Airlines did very well in 2007.

There's no need to panic because Ryanair had worse results than expected, no. LCC's are typically the first ones to benefit from a passenger number increase in a recession...
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