Originally Posted by davidjohnson6
I don't know the answer myself, but can the Irish market really support 3 airlines throughout the economic cycle ? Sure during the good times, all airlines will likely make money, but when times are tough (e.g. sluggish economy combined with ash from volcano), are fares in a country of 4.5 million people high enough to keep 3 independent Irish airlines with substantial operations reasonably healthy ?
Yes, competition is good for both the consumer and the industry as a whole, but airlines also need to be able to make a steady profit every year to ensure their long term survival and stability of the industry
Aer Arann are the only airline serving most of the routes they fly, and are the sole airline at some of Ireland's regional airports, so its not route saturation thats caused Aer Arann's going into examinership. We know they've been loss-making for the last 2 years, but the main reason for them going into examinership is the ash cloud crisis.
So I think its fair to say there is a market for Aer Arann because they serve a mainly niche market, which would otherwise be unserved by the other 2 main airlines.