Ryanair can't shift everything out of STN but they can make a sizeable dent. How much capacity will there be at LTN once all the building work is complete ? Can some Ws be done at Gatwick for the off peak periods ?
May not be rational for FR to move aircraft from a short term profit perspective, but they have a track record of doing so at other bases when they have a point to make.
If the bidders for STN are heavily financed by debt they will not be able to afford to take long term views in the first few years. Interest costs will be fixed but revenues variable against passenger numbers.
Conversely whoever buys STN should be doing their utmost to diversify their airline customer base and reduce reliance on FR long term, while signalling FR won't have authority over STN's board of directors to reassure other airlines. Perhaps some clause limiting the voting rights of FR's shares might help or the use of non voting preference shares rather than ordinary shares ?
Last edited by davidjohnson6; 24th Aug 2012 at 09:27.