OK, outsourcing is one option, but I think that the fundamental issue is that EI is bringing way too much capacity onto routes which, were they operated with smaller aircraft, would probably do quite well. EI already - even now - gets surprisingly good transfer numbers from European flights, but the UK market, where they used to be very strong - back in the days of ALC - has been practically abandoned to FR, with EI now having one daily flight to major centres (like EDI for example), where it used to have three.
Two solutions:
- Either a smaller aircraft for itself, or alternatively,
- develop the relationship with RE, which will see a significant downturn once the PSO is withdrawn from domestic flights
Of the new generation of 100 seater jets - Canadair CS, Embraer 170/190, Mitsubishi MRJ, Canadair 900/1000 - are there any which can come anywhere near FR's operating costs? Don't forget that this is becoming quite a crowded marketplace, so it's pretty much a buyer's market.
Instead of replacing older 320s (or the planned 330 cancellations) with newer 320s, consider the 319, which could be operated by three cabin crew.
Consider whether the 350 - which is quite a large aircraft (considerably bigger in capacity than the current 333) is the right aircraft for EI going fwd. Sure, an aircraft of that size might be fine for the trunk routes like JFK, BOS or ORD, but probably not much use for expanding into new markets, which EI should be looking to do, once the current problems are behind them. Maybe it's time to look again at the 787? (If, as has been rumoured, EI develops a relationship with AF/KL, then perhaps EI could benefit from AF/KL's planned huge A350/787 order?)
EI has long been touting the potential of DUB as a hub, particularly with the opening of T2 - which will have US immigration AND customs preclearance; isn't it about time to look at the scheduling of flights, to maximise the potential of this operation? For example, SFO leaves at 9.40 - useless for connections. So, like DXB - which was axed before it was ever allowed to reach its potential due to poor planning - SFO could be lost simply because it was operated at the wrong time?
As a Plan B, consider the possibility of an off-shoot long haul operator, using some of the older 330s in a high density layout, to explore the potential of long haul low cost; the A330 is already one of the most economical t/a aircraft around; totally written down (from a balance sheet standpoint) and with a high density layout, it could help stimulate demand in some US markets?