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Old 20th Sep 2014, 21:52
  #2434 (permalink)  
racedo
 
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Remember the lower charges go the worse off EI will be as FR will be able to cut costs even more and widen the gap while EI are always trying to drive up yield. EI have done well over the last few years while FR were kept at bay. They are feeling the pinch already especially this coming winter.
I'm astounded by what I read........

Dublin is by far the largest Airport in EI's airports served therefore any reduction in charges will have a very substantial immediate benefit to their profitabily and bottom line, increase likewise will have a significant impact as they need to increase fares to cover.

If EI fly 3 million pax from Dublin and an increase of €5, it means they have to try and recover that from Pax, IF they can, if not they in the hole for €15 Million per year. That would be on 30% of their total passengers numbers. So cost €1.5 per passenger spread through all passengers.

IF FR fly 3 million from Dublin and can't increase fares, the same costs apply, however they can spread that €15 million over 84 Million passengers, or 3.5% of their total passengers. So cost €0.17 per passenger.

I doubt EI management seeing their costs go up 22% feel that they will be way better off because Ryanair don't get a benefit.
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