PPRuNe Forums - View Single Post - Growing evidence that the downturn is upon us....
Old 4th Feb 2008, 08:54
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Wee Weasley Welshman
 
Join Date: Feb 2000
Location: England
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I do my own research thanks. You will find that as we entered the last recession in 1990 both Airbus and Boeing had full order books and long waiting times. It means nothing.

There has never been a US recession without the UK following suit. Given the dire state of the public finances there is little scope for increasing government spending to take up the slack left by the consumer going on strike. If you run an economy based on credit then eventually a credit crunch is inevitable.

With average houses now at 9 times average earnings an unwinding of around 30% looks inevitable.

I hate to tell you that the airline business is hit hard and fast in any recession. In Ryanairs press release that goes with MOL's appearance in the media this morning they mention profits going lower still despite 'profits from aircraft disposals'. If RYR are contemplating shrinking their fleet then that it very big news indeed for the industry.


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