Originally Posted by
GELOFAB
What market do you have in Knock? or in Kerry? or in Galway? answer: there is a market to fly people. If we keep thinking in a way that sounds like as if we are afraid of releasing the wrath of FR ,then, certainly, there will be little hope. But if we think in a way in that, thanks in no small part to FR, SAA has been forced to reduce the airport cost base, then, maybe, there is a hope to keep looking for business out there. As it has happenened with BA.Very limited service to Shannon, very true, but better than nothing.And that is the way to go. The west coast of Ireland will not remain scatterly populated for ever. Is the Government going to close Shannon airport in the meanwhile? There has been over 3 million people flying through Shannon in recent years. for whatever the reasons. but that's the figure.
Now, FR has been playing around with Shannon (and other airports, and millions of customers) for many years. Maybe is time for any airport to start playing and paying back. Maybe is time to go back to FR competitors and make a compromise to offer them better deals than to ryanair, and see if they are interested or not. Nothing personal. Pure business. Like FR does.
You are criticising others for being fearful of FR competition, and you're exhorting carriers to be bolder. With respect, I think you are being unrealistic if you think that lower landing fees in SNN will somehow keep FR out.
Let's imagine that SNN says to easyJet (or Jet2, or whoever you like), "hey, come and fly routes from SNN, and we'll only charge you €0.50 per passenger, and we promise that we'll not do any discount deals with Ryanair." Do you imagine that Ryanair will therefore conclude "oh, damn, we lost that one, never mind", and walk away? FR is currently operating DUB-ORK with poor load factors and yields, which they launched in competition with Aer Arann (and therefore are unlikely to have a discount deal) - but they keep operating it to keep the pressure on RE. The history of easyJet's (and before them Go's) failed incursions into Ireland demonstrate FR's aggressive response to competition, with or without discounted airport deals. While I deplore FR's hyper-aggressive approach to competition, it does not surprise me: if you had that many new aircraft arriving that you had to fill, you too would be willing to take some short-term financial sacrifices in order to keep markets to yourself in the longer term.
You're suggesting that other carriers should be brave and should start routes out of SNN, effectively calling Ryanair's bluff. Frankly, if I were a shareholder in the likes of easyJet or Jet2, I would regard this as suicidal folly - certainly not a wise use of cash. Faced with a choice of new route startups, one which carries a risk of a war with Ryanair and another which doesn't, which makes more sense? Especially since - with all due respect - the potential return from the SNN market is not so lucrative as to justify the risks.
You may deplore this timidity in the face of Ryanair and wish it were otherwise. I can entirely understand that. But it is a perfectly rational timidity. One of the most frequent omissions in startup-company business plans is real consideration of what the competition will do - the assumption is "we're small, so they won't do anything." This is not a safe assumption, even less so when the competitor in question has established its reputation for squashing competition. Please feel free to disagree, go out and raise money for a startup, and fly from SNN. I am not being funny, I'm being sincere. If you feel there's a real business opportunity, go and do it - others' timidity may be your opportunity.