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Old 22nd Apr 2008, 15:42
  #794 (permalink)  
AbeamPoints
 
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Parking the equivalent of BmiBaby over the winter suggests that the winter will be harsh for all airlines if RYR can't make any money.

Buzz is irrelevant. The Post Sept11th era of massive LoCo expansion is firmly in the past. Buzz wasn't going to the wall. In the present economic climate every commentator and analyst is saying that several airline will go under.

Your faith in the Aer Lingus operation is lovely. Not forgetting they came within a whisker of going bust 6 years ago when they were State supported this confidence is suprising. Dublin house prices are down 12% in a year. The dependence on US corporate investment is rapidly becoming a liability as the Euro/Dollar rate rockets. No economy in the West in the last 60 years has expanded like the Republics without resulting in a recession.

You think Eire won't see one? Really?

Take away the Lingus transatlantic revenue and you are left with a small marginally profitable airline that competes on cost with Ryanair. Hardly an investors fantasy dream.

I don't wish to spend undue efforts disparaging specific airlines business models. My views are expressed merely to counter the theory that Jet2 would be an attractive purchase to O' Leary. It isn't and won't be. At any price.

You'll find very very few airlines in a mood to go out shopping in the current turmoil. Lufty for BMI - maybe. You think airlines are going to spend money on adding more regional shorthaul capacity and I say you would have to be on drugs.
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