Originally Posted by
racedo
Hardly, all write offable to make sure it pays less tax.
Had EI been really free to compete with Unions being flexible and with Irish Govt support they could have really given FR a run for their money and hurt them into and out of Ireland and elsewhere.
However they weren't so even spending a net €50 million (or 1% of last years turnover) over the years has been more than already paid.
Just picking a Uk airport (Gatters) and had EI developed and pushed FR off route then that would be 5-6 flights a day x2 in and out, ave fare to there is reckon €60, prob 80% full x 364 days and you get 1 year just to Dub, add in other services from and you see impact.
Spending €50 M over life of EI ownership is a drop in the ocean and not something shareholders seem really that concerned about, getting fuel hedging wrong costs more than that.
Can't really be too critical on MOL on the fuel hedging a few years back. Sure he hedged, way, way later than most other airlines and got quite badly burned as a result, but fuel prices have been so unpredictable over the last 15 years in particular. And to add to the unpredictability the ME is more unstable now than ever with IS, and yet oil prices are low because the west wants to put the boot in on Putin.
And as for the EI thing: absolutely agree 50 mil over 9 years is peanuts for FR. I'm guessing the fact it's in the pockets of various solicitors and Euro beaurocrats annoys him far more than the fact it was wasted alone!