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Old 3rd Oct 2014, 13:29
  #1912 (permalink)  
Skipness One Echo
 
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but if there's any truth in it, I hardly think GLA and EDI will be interested if its cargo related.
That's a bunker mentality, EDI and GLA now have an opportunity to be rid of one of their competitors once and for all. I think that maybe, just maybe, they'll be very interested. The article is just fluff btw. Airlines talk to Governents every day and the SNP government owns PIK, so go figure. Any incentives by a public sector body to gain a competitive advantage against GLA or EDI ( ie solvent trading businesses) by offering deep discounting using the public purse will not last long before they hit the courts.

So Manston's gone, Blackpool's going, Teessides' hanging on by it's fingernails. So genuine question :

If PIK manages a deal tomorrow to get one B744F on a daily service to somewhere, how many more of them would it take to balance the books on the current cost base?

Key problem here is their business model doesn't work, it's now an endemic structural weakness. Much of the Ryanair schedule is off to Glasgow and they still have that enormous terminal to keep open for the remainder. This is the scenario which is about to close BLK as to accomodate Jet2, they had to heat and staff a terminal that sat empty much of the day. Sound familiar? The next opportunity is for Ryanair to consolidate winter flying at GLA and make seasonal sun flying through PIK a summer only activity.

So has the cost base issue at PIK been addressed? In the public sector? Er....no.

Last edited by Skipness One Echo; 3rd Oct 2014 at 13:42.
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