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Old 3rd May 2011, 15:30
  #3556 (permalink)  
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Arguments about the runway at DUB and requirements to stop at SNN are in the past. It's time to move on. EI have a serious problem, in the shape of those A350s. They are far too large and are comically over capable for short runs over the Atlantic. Hopefully these early positions will be attractive to EIs new majority owner, or they can swap them for a dozen A321NEO. The A330 is more than capable of servig EI very well into the 2020s.

I'm not convinced about the 319 for EI, as it was envisioned above. One less cabin crew and 30 less seats is hardly worth it. The gap between the ATR and next smallest aircraft would still be too large. I would expect these to be replacing A320s, allowing better yield and higher loads. Not all routes require the 174 seats of the A320.
Excellent post and gets to the essence of the real longer term problem for EI. Yes, there is a current problem on some routes with the capacity of the A320. However, this isn't a constant, often cyclical in nature, correlating with seasonal demand. As others have stated, EIR are currently filling a position in the market very well. EI can hardly be expected to move from an All Airbus fleet to EMBs overnight either - that's not going to happen.

The A320 is suboptimal for some routes no doubt at the moment - but, is this issue having a significant impact on the group's overall performance, especially given the Ops of EI Regional - certainly not a material impact. Would the additional, net contribution generated from the deployment of an EMB series for example outweigh the current bottom line performance? In principle it seems very easy - such aircraft with those capacity levels would be ''perfect'' for routes with thinner demand. The reality is less than clear cut. There are extensive costs associated with training of crews and MX staff on a new series - that certainly wouldn't be appropriate for the vast majority of EI's routes.

The real, pressing issue as Brian has pointed out is in fact with the A350 Order. This order, whilst very much being a longer term issue, will have to be revised, because the series on order are entirely inappropriate for EI Operations. Even if fundamental economic principles over time were proven wrong and the economy somehow recovered from it's present abyss like state - demand would still not be sufficient for the capacity of the A350 aircraft on order, at least to ensure profitability.

Concepts of a hub style operation at DUB for EI are well meaning, but is there really any potential for this? I think that we have to accept that traffic growth is and will be limited for some time to come. ''Stagflation'' is the key word at present. Without the current levels of transfer pax through DUB and certainly during Winter 2010/2011 - many long haul flights would have been deeply loss making. There is extremely limited scope for a sharp increase in transfer passenger numbers in the near term.

Growth, at EI - will be limited for some time and the company is not in a position to embark on the acquisition of an entirely different aircraft type. It's net cash position is certainly strong, but not strong enough to withstand a shock of not being able to service further significant debt taken on in acquiring another aircraft series.

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