Aer Lingus - 5
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RE UA/EI operations to other destinations. I've heard rumours that there were discussions of operating IAD-BCN and IAD-NCE. That said I've also heard there were rumours of IAD-ATH and IAD-CAI. Would an Airbus 330-200 be able to cover those very long distances of the latter two cases?? The reason for the routes so I've heard is that they are more 'leisure' markets and that UA's aircraft are not configured appropriately for them whereas EI's airbuses are.
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IAD
Unfortunately the DUB/IAD service never made money.Indeed it was not much better than the BWI service. Business travel was very poor, I believe even the Irish Ambassador traveled in Y.
Still never say never, with the interline agreement with UA and possible new alliance, along with the end of the recession, thinks might be different. I hope so!
Still never say never, with the interline agreement with UA and possible new alliance, along with the end of the recession, thinks might be different. I hope so!
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I don't think the 332 would have problems with either of these routes; they should be well within the range of the 332. The question is, will EI need to get more 332s to service these routes?
Also, was just wondering if still had interest in the 319; with Mexicana having some of its (very new) 319s repossessed (LN 4000+), I wonder if it might offer an opportunity to EI?
Also, was just wondering if still had interest in the 319; with Mexicana having some of its (very new) 319s repossessed (LN 4000+), I wonder if it might offer an opportunity to EI?
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Originally Posted by EI-AAA
Unfortunately the DUB/IAD service never made money.Indeed it was not much better than the BWI service. Business travel was very poor, I believe even the Irish Ambassador traveled in Y.
Still never say never, with the interline agreement with UA and possible new alliance, along with the end of the recession, thinks might be different. I hope so!
Still never say never, with the interline agreement with UA and possible new alliance, along with the end of the recession, thinks might be different. I hope so!
You only need to look at how much of a success the Abu Dhabi-Dublin route is for Etihad to see what good timings can do for a route.
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Losses
Aer Lingus net losses narrow (Irish Times - 24 August 10)
Related
Aer Lingus 'will not water down' ?97m cost-saving scheme | 14/08/2010Aer Lingus stands firm on cost cuts | 13/08/2010Aer Lingus says it has plan to deal with roster dispute | 13/08/2010Aer Lingus cabin crew vote in favour of industrial action | 12/08/2010CHARLIE TAYLOR
Aer Lingus reported today that operating losses fell by 80 per cent in the first six months of 2009 and said it aims to break even this year.
Pre-tax losses during the first half narrowed to 20.8 million from 81.1 million a year earlier. Operating losses fell to 19 million from 93 million.
The cost of running the airline also declined, with operating costs down 14 per cent from 648 million to 557 million.
First-half revenues fell 3.1 per cent to 538 million as against 555 million a year earlier.
"Aer Lingus has delivered a significantly improved operating result in the first half of 2010 compared to prior year. This performance has been driven by strong unit revenue growth coupled with a significant improvement in our cost base," said Aer Lingus chief executive Christoph Mueller.
This operating result was achieved despite the adverse impact of volcanic ash disruption in H1 2010 as well as the continuation of difficult conditions in our key Irish market where unemployment is currently at 13.7 per cent per cent and where passenger numbers passing through Dublin airport have declined by 16 per cent compared to the first six months of 2009," he added.
Mr Mueller said the airline expected to break even during 2010, the first time Aer Lingus would do so since 2007.
The airline carried almost 11 per cent fewer passengers in the first six months of 2010 than in the same period a year earlier. However, the average yield per passenger rose 8 per cent during the six months from 91.36 to 98.66.
Revenue per passenger also increased by 8 per cent.
The airline it achieved 11.7 million in staff cost savings under its Greenfield programme during the first half of the year
Related
Aer Lingus 'will not water down' ?97m cost-saving scheme | 14/08/2010Aer Lingus stands firm on cost cuts | 13/08/2010Aer Lingus says it has plan to deal with roster dispute | 13/08/2010Aer Lingus cabin crew vote in favour of industrial action | 12/08/2010CHARLIE TAYLOR
Aer Lingus reported today that operating losses fell by 80 per cent in the first six months of 2009 and said it aims to break even this year.
Pre-tax losses during the first half narrowed to 20.8 million from 81.1 million a year earlier. Operating losses fell to 19 million from 93 million.
The cost of running the airline also declined, with operating costs down 14 per cent from 648 million to 557 million.
First-half revenues fell 3.1 per cent to 538 million as against 555 million a year earlier.
"Aer Lingus has delivered a significantly improved operating result in the first half of 2010 compared to prior year. This performance has been driven by strong unit revenue growth coupled with a significant improvement in our cost base," said Aer Lingus chief executive Christoph Mueller.
This operating result was achieved despite the adverse impact of volcanic ash disruption in H1 2010 as well as the continuation of difficult conditions in our key Irish market where unemployment is currently at 13.7 per cent per cent and where passenger numbers passing through Dublin airport have declined by 16 per cent compared to the first six months of 2009," he added.
Mr Mueller said the airline expected to break even during 2010, the first time Aer Lingus would do so since 2007.
The airline carried almost 11 per cent fewer passengers in the first six months of 2010 than in the same period a year earlier. However, the average yield per passenger rose 8 per cent during the six months from 91.36 to 98.66.
Revenue per passenger also increased by 8 per cent.
The airline it achieved 11.7 million in staff cost savings under its Greenfield programme during the first half of the year
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http://www.aerlingus.com/media/aerli...ingus_half_year_report_pe30610.pdf
In summary then - a very positive turnaround in the Aer Lingus performance.
Total Revenue is down slightly HY on HY, but less than the amount by which capacity has been reduced. Equally, Total ancillary revenue is down slightly, but revenue per passenger has increased significantly in the period.
Depending upon the general Macroeconomic environment, I would still target Q2, 2011 as the crucial period in which we should see clear profitability at Aer Lingus.
Going forward, Total revenue is likely to remain relatively stagnated as domestic demand in Ireland remains exceptionally weak compared to pre-crisis levels. However, for the full year Total Revenue will once again exceed 1 billion.
According to the Investor Presentation, a decision from the arbitrator is expected within the next 48 hours and that talks are proceeding at the present.
I think that a ballpark figure for the share price towards the year end would be 1.20.
1.20 is some distance to go, but if we are to see a continuation of the performance as announced this morning, then I think this is quite possible. With an aim for certainly between 1.10 and 1.20 around the period in which the full year results will be announced.
There's no doubting that EI, as a company, despite having had many changes in the recent past, is in a mature stage and that there is no significant potential for extensive Total Revenue growth. However, based upon the latest performance, I see ample scope for the group to deliver total profits before tax of in equivalence to or in excess of 30 million during the FY 2011 .
Gross cash will quite likely decline during H2, 2010 as we see an increase in outflows associated with the various Greenfield severance packages.
An extremely prudent fuel and currency hedging program is in place at the company and this must be commended. Given the more subdued nature of the global recovery in the recent past, most especially in the United States where the economy is clearly faltering - we should see minimal upward pressure upon oil prices in the next 12 months.
I also noted from the presentation, the clear refences to the immature cost bast at IAD and the potential for at least a second aircraft to be added during next year. This is something which should be watched closely. I note that the base was ''operationally profitable'' - which does suggest that when the appropriate allocation of Fixed Overheads for the period was made that the base was in fact loss making.
The turnaround in the EI performance is significant in terms of the companies listed on the ISEQ index - you only need to take a look at the CRH figures today for example.
This turnaround would not have been possible without many sacrifices having been made by staff across the board at Aer Lingus - which is very commendable indeed.
EI Premier
In summary then - a very positive turnaround in the Aer Lingus performance.
Total Revenue is down slightly HY on HY, but less than the amount by which capacity has been reduced. Equally, Total ancillary revenue is down slightly, but revenue per passenger has increased significantly in the period.
Depending upon the general Macroeconomic environment, I would still target Q2, 2011 as the crucial period in which we should see clear profitability at Aer Lingus.
Going forward, Total revenue is likely to remain relatively stagnated as domestic demand in Ireland remains exceptionally weak compared to pre-crisis levels. However, for the full year Total Revenue will once again exceed 1 billion.
According to the Investor Presentation, a decision from the arbitrator is expected within the next 48 hours and that talks are proceeding at the present.
I think that a ballpark figure for the share price towards the year end would be 1.20.
1.20 is some distance to go, but if we are to see a continuation of the performance as announced this morning, then I think this is quite possible. With an aim for certainly between 1.10 and 1.20 around the period in which the full year results will be announced.
There's no doubting that EI, as a company, despite having had many changes in the recent past, is in a mature stage and that there is no significant potential for extensive Total Revenue growth. However, based upon the latest performance, I see ample scope for the group to deliver total profits before tax of in equivalence to or in excess of 30 million during the FY 2011 .
Gross cash will quite likely decline during H2, 2010 as we see an increase in outflows associated with the various Greenfield severance packages.
An extremely prudent fuel and currency hedging program is in place at the company and this must be commended. Given the more subdued nature of the global recovery in the recent past, most especially in the United States where the economy is clearly faltering - we should see minimal upward pressure upon oil prices in the next 12 months.
I also noted from the presentation, the clear refences to the immature cost bast at IAD and the potential for at least a second aircraft to be added during next year. This is something which should be watched closely. I note that the base was ''operationally profitable'' - which does suggest that when the appropriate allocation of Fixed Overheads for the period was made that the base was in fact loss making.
The turnaround in the EI performance is significant in terms of the companies listed on the ISEQ index - you only need to take a look at the CRH figures today for example.
This turnaround would not have been possible without many sacrifices having been made by staff across the board at Aer Lingus - which is very commendable indeed.
EI Premier
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Their shareholders will be thrilled to pieces - especially the nice people in Ryanair.
How does EI decide on a new route? Do they say, just chance something new like Ryanair, or do they try to be sort of scientific about it etc?
How does EI decide on a new route? Do they say, just chance something new like Ryanair, or do they try to be sort of scientific about it etc?
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Riptak, Indeed it was Jan 09 when this EI/UA was announced. The route is doing very well I believe with very high load factors in both directions and classes. How well it does over the winter will be another matter, though I believe Iberia are only operating the route seasonally so that should help.
A new route, if it is going ahead, will probably be announced in mid Sept. Rumours abound and include,in no particular order, berlin, barcelona,malaga nice, cairo,istanbul,athens,budapest,geneva - place your bets now!!
EI Premier - very interesting post, but please do not use "going forward" it is such a Mannionism! Apparently any one caught using it in head office "vil be shot" - a novel approach to the staff surplus I think!
A new route, if it is going ahead, will probably be announced in mid Sept. Rumours abound and include,in no particular order, berlin, barcelona,malaga nice, cairo,istanbul,athens,budapest,geneva - place your bets now!!
EI Premier - very interesting post, but please do not use "going forward" it is such a Mannionism! Apparently any one caught using it in head office "vil be shot" - a novel approach to the staff surplus I think!
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A kool shooting the staff how "soviet Bloc" We could send them away to the salt mines(do we have any in Ireland) or Gulags or Ghost Estates if they under preform.
Savage idea, they could jusat have all record of them erased at the touch of a button.
Savage idea, they could jusat have all record of them erased at the touch of a button.
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EI Premier - very interesting post, but please do not use "going forward" it is such a Mannionism! Apparently any one caught using it in head office "vil be shot" - a novel approach to the staff surplus I think!
LOL!
Indeed - now wouldn't that be a error to repeatedly use phrases similar to those used by Mr. Mannion! It might be a precursor to imminent demise!
How about ''towards the medium term''?
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Good financials from EI - looks like it might make it (though I note is still seems to be eating into reserves)
Where do you make this assumption from? Gross cash has increased by 21.9% or by 181.5 million during H1, 2010.
While a significant amount of this uplift in Gross Cash is related to foreign exchange and the financing of additional aircraft units, the cash bleed has undoubtedly ceased. In fact, the company's ''real'' deposit base has actually improved. At present, only 59.5 million of the aforementioned Gross Cash figure is restricted.
Interest on the deposit base is down significantly HY on HY, due to the dirt rubbish interest rates on Deposits at the moment, on which further ''DIRT'' has to be paid of course!
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Does anyone know of the Cabin Strike dates? And the length of them
Hopefully the outcome of the arbitration should defuse things.
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Industrial action withdrawn while the 39 pages of the LRC report are considered. Why do people assume that industrial action = STRIKE ? Strike action is the LAST tool in the chest and is ONLY used when there is NO other option. No one wins in a strike, there are only degrees of losing, both sides know that.
Have a nice evening
Pat
Have a nice evening
Pat
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EI/UA
Interesting posts about the IAD situation, it just seems to me to make more sense if they upscale the IAD base, at the moment it's a lot of effort for one route.
Espaρa
On another note I always think it strange that EI never opened a base in Spain. Like going back 10 years I thought they would have been a prime candidate to open a base in AGP or MAD. Given their experience with Futura and the popularity of Spain with Irish and English people it seemed like a winner. Maybe not so much now with the onslought of Ryanair and Vueling.
Espaρa
On another note I always think it strange that EI never opened a base in Spain. Like going back 10 years I thought they would have been a prime candidate to open a base in AGP or MAD. Given their experience with Futura and the popularity of Spain with Irish and English people it seemed like a winner. Maybe not so much now with the onslought of Ryanair and Vueling.
Last edited by riptack; 25th Aug 2010 at 05:46. Reason: grammar!
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RE franchise
Hi there, does anyone have any info on the franchise agreement between RE and EI in terms of how the commercial terms of the relationship works? I'm aware that RE perform the operational elements of the flights, but how does each party benefit and who controls the route selection and yield management- do EI retain a percentage of the revenue received from sales of each seat before passing the remainder to RE, or do EI effectively charter the ATR's off RE, paying them a set fee regardless of pax or yield?
Also, any further insight into the rumours of an additional short haul cabin class/ fare class being added to the product offering?
Also, any further insight into the rumours of an additional short haul cabin class/ fare class being added to the product offering?
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Hi there, does anyone have any info on the franchise agreement between RE and EI in terms of how the commercial terms of the relationship works? I'm aware that RE perform the operational elements of the flights, but how does each party benefit and who controls the route selection and yield management- do EI retain a percentage of the revenue received from sales of each seat before passing the remainder to RE, or do EI effectively charter the ATR's off RE, paying them a set fee regardless of pax or yield?
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A319s for Aer Lingus?
I was just wondering if EI was still interested in the A319; it was hinted at in an investor roadshow a while back.
If so, Mexicana's collapse has just released another 25 onto the market; some of these are very new (LNs 4,000+). No doubt some good deals are possible?
With regard to the short haul fleet generally:
1. Are the A321s remaining in the fleet indefinitely?
2. Some A320s have their leases expiring in the near future; are these going to be renewed?
3. Is there a Plan B, if RE ceases operations entirely? Could EI consider opening its own commuter offshoot? (ALC Mark 2)
If so, Mexicana's collapse has just released another 25 onto the market; some of these are very new (LNs 4,000+). No doubt some good deals are possible?
With regard to the short haul fleet generally:
1. Are the A321s remaining in the fleet indefinitely?
2. Some A320s have their leases expiring in the near future; are these going to be renewed?
3. Is there a Plan B, if RE ceases operations entirely? Could EI consider opening its own commuter offshoot? (ALC Mark 2)
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Hi there, does anyone have any info on the franchise agreement between RE and EI in terms of how the commercial terms of the relationship works? I'm aware that RE perform the operational elements of the flights, but how does each party benefit and who controls the route selection and yield management- do EI retain a percentage of the revenue received from sales of each seat before passing the remainder to RE, or do EI effectively charter the ATR's off RE, paying them a set fee regardless of pax or yield?
Aer Arann and Aer Lingus moved to reassure passengers yesterday that it was business as usual for the regional service during the examinership process.
Aer Lingus is not thought to be owed any money by Aer Arann. Under the terms of the franchise deal, the bookings are made through Aer Linguss website.
Aer Lingus takes a franchise fee from each passenger fare and pays the balance to Aer Arann when the aircraft has flown the route.
Aer Lingus is not thought to be owed any money by Aer Arann. Under the terms of the franchise deal, the bookings are made through Aer Linguss website.
Aer Lingus takes a franchise fee from each passenger fare and pays the balance to Aer Arann when the aircraft has flown the route.
This also means that Aer Arann take the risk of not filling the aircraft, not Aer Lingus.
Last edited by Cyrano; 28th Aug 2010 at 20:41. Reason: edited to clarify who takes the revenue risk