Aer Lingus - 5
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A couple of things...........
Oil prices for Brent in US$ and Euro
Oil broke through $110 on March 12, 2008[10], $125 on May 9, 2008[11], $130 on May 21, 2008 [12], $135 on May 22, 2008, $140 on June 26, 2008 and $145 on July 3, 2008[13]. On July 11, 2008, oil prices rose to a new record of $147.27 following concern over recent Iranian missile tests[14].
Aer Lingus has increased its fuel surcharge on transatlantic flights for the second time in four weeks.
In a statement today, the airline said the surcharge would rise by up to 15 per cent or by a minimum of €10 for all flights to the US.
The new charges will apply to flights booked from next Wednesday, June 11th
Aer Lingus corporate affairs director Enda Corneille said the charge was being increased to meet rising oil prices.
“With jet fuel prices reaching unprecedented levels, increasing by 13 per cent month-on-month May over April, we have been driven to increase our fuel surcharge on long haul flights once again,” he said
14th August news report.............
US crude oil futures for September delivery fell $2.17 at $113.83 a barrel after falling as low as $112.59.
London Brent traded down $1.18 lower at $112.29 a barrel.
Today's falls follow a rise of almost $3 yesterday.
So Enda, wheres the reduction in the fuel charge? Or are you just another one of those C U next tuesday guys who just takes pleasure in ripping off the customer and then wonders why nobody wants to fly on your pretty substandard t/a product?
Jaysus, this wine is great!
Oil prices for Brent in US$ and Euro
Oil broke through $110 on March 12, 2008[10], $125 on May 9, 2008[11], $130 on May 21, 2008 [12], $135 on May 22, 2008, $140 on June 26, 2008 and $145 on July 3, 2008[13]. On July 11, 2008, oil prices rose to a new record of $147.27 following concern over recent Iranian missile tests[14].
Aer Lingus has increased its fuel surcharge on transatlantic flights for the second time in four weeks.
In a statement today, the airline said the surcharge would rise by up to 15 per cent or by a minimum of €10 for all flights to the US.
The new charges will apply to flights booked from next Wednesday, June 11th
Aer Lingus corporate affairs director Enda Corneille said the charge was being increased to meet rising oil prices.
“With jet fuel prices reaching unprecedented levels, increasing by 13 per cent month-on-month May over April, we have been driven to increase our fuel surcharge on long haul flights once again,” he said
14th August news report.............
US crude oil futures for September delivery fell $2.17 at $113.83 a barrel after falling as low as $112.59.
London Brent traded down $1.18 lower at $112.29 a barrel.
Today's falls follow a rise of almost $3 yesterday.
So Enda, wheres the reduction in the fuel charge? Or are you just another one of those C U next tuesday guys who just takes pleasure in ripping off the customer and then wonders why nobody wants to fly on your pretty substandard t/a product?
Jaysus, this wine is great!
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Sorry that was an old news report
Demand worries send oil $2 lower
Friday, 15 August 2008 17:43
Oil prices dropped more than $2 to $112 a barrel this evening on growing concerns about weaker demand in industrialised nations and the stronger dollar.
US crude fell $2.67 to $112.34 a barrel. London Brent lost $2.52 to $111.16.
Crude has fallen sharply since reaching all-time highs above $147 on July 11 as growing global economic problems and high fuel prices cut demand in top consumer the US and Europe.
But we still pay high prices and higher fuel surcharges!
Demand worries send oil $2 lower
Friday, 15 August 2008 17:43
Oil prices dropped more than $2 to $112 a barrel this evening on growing concerns about weaker demand in industrialised nations and the stronger dollar.
US crude fell $2.67 to $112.34 a barrel. London Brent lost $2.52 to $111.16.
Crude has fallen sharply since reaching all-time highs above $147 on July 11 as growing global economic problems and high fuel prices cut demand in top consumer the US and Europe.
But we still pay high prices and higher fuel surcharges!
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The fuel surcharge will only fall once EI see that it's at a stable level. They don't want to reduce the fuel surcharge only to see oil prices soar forcing them to up the charge a few weeks later. However, Aer Lingus Cargo have reduced their fuel surcharge this week so we could see a reduction for passengers very soon.
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Just a Spotter to answer your question the EI403 was cancelled on the previous day and I can only speculate that this was filling the gap, it was an A321 with a tech problem in FCO.
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Rebel PPRuNer
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the press are having a field day with the BFS base due to the CAA's posting of traffic numbers. Imagine if the IAA had done the same all these years...
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With Aer lingus losing 22 million in the first 6 months and forecasting possible losses of 30 million for the year, unless I am mistaken that would be a loss of 8 million during the most lucrative summer months (last 6). 2 Questions. 1. Where can Aer Lingus cut costs without upsetting everyone currently employed?. 2. They stated in their report that if they did not cut costs they could be looking at 3 digit Million losses. How long is Aer Lingus sustainable with these losses.. share price sliding further probably leaving them open to a takeover. 
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Its people like Bramble and the rest I feel sorry for. I have a few cc friends and its always the main workers that are expected to take the hit. Still no suggestion that the new chairman will cut all the senior managers wages. Incidentally how much is the new chairman pay check?
Just a question in relation to the losses, wheres the money from the profits gone? Also how can they blame the losses on the cost of oil when most of the fuel for 2008 was hedged?
I dont see how much more that EI can reduce their cost base. Its a shadow of what they used to be like. The t/a service reminds me of something offered in the third world, and lets not even talk about premier.
So I throw it out there, what can you suggest EI do to lower losses? Because ultimatly it is going to the customer that pays for everything.
Maybe let go a few more middle managers that do nothing anyway and give senior managment a pay cut..........but its more than likely going to be the new cabin crew with a shiny new uniform (that they paid for) thats going to get the pay cut!
Just a question in relation to the losses, wheres the money from the profits gone? Also how can they blame the losses on the cost of oil when most of the fuel for 2008 was hedged?
I dont see how much more that EI can reduce their cost base. Its a shadow of what they used to be like. The t/a service reminds me of something offered in the third world, and lets not even talk about premier.
So I throw it out there, what can you suggest EI do to lower losses? Because ultimatly it is going to the customer that pays for everything.
Maybe let go a few more middle managers that do nothing anyway and give senior managment a pay cut..........but its more than likely going to be the new cabin crew with a shiny new uniform (that they paid for) thats going to get the pay cut!
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Where can Aer Lingus cut costs without upsetting everyone currently employed?
- Cutting underperforming/unprofitable routes. We're already seeing this with Copenhagen and Helsinki gone and Prague gone from Cork.
- Closing/selling Shannon ground handling. Whatever the future of flights at Shannon, it can't make sense to self-handle for the number of flights through Shannon now.
- There may also be a case to sell the ground handling ops in Cork. If not then they need to look at doing the handling for a few other airlines to increase revenues.
- Turnaround times could be reduced, but that might not be such a good idea if it would involve creating time to fly more unprofitable flights!
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Also how can they blame the losses on the cost of oil when most of the fuel for 2008 was hedged?
For example, if they hedged in 2006 for 2007 and 2007 for 2008, then by hedging in 2006 meant that the 2007 fuel cost them less than the fuel in 2008 which was hedged in 2007.
Whether you're hedged on not the price of fuel is still always increasing, so of course this is a reason for the losses. Aer Lingus can't cope with 2007 fuel prices. (Just like most of the airlines out there).
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Hey,
This is really more a medium/long term solution, but, could introducing smaller regional jets result in any savings? Now, before you jump all over me, I realise there would be purchase, training, changeover and additional maintainance costs.
However, Aer Lingus have gone down the route of only deploying A32 family aircraft on short haul routes. This is borrowed from Ryanair, and their 738 only policy (borrowed from Southwest). The point is, and its begining to show with Ryanair that those ac are simply too big for some routes. For example, I presume there were at least some passengers flying Helsinki or Copenhagen, would an E-Jet have made this more economical??
Alot of Airlines are now going down this route, Jetblue for instance. When you consider the cost savings promised by the C-Series, could this be worth looking at....Quite apart from being a popular move with our friends up North
!!
This is really more a medium/long term solution, but, could introducing smaller regional jets result in any savings? Now, before you jump all over me, I realise there would be purchase, training, changeover and additional maintainance costs.
However, Aer Lingus have gone down the route of only deploying A32 family aircraft on short haul routes. This is borrowed from Ryanair, and their 738 only policy (borrowed from Southwest). The point is, and its begining to show with Ryanair that those ac are simply too big for some routes. For example, I presume there were at least some passengers flying Helsinki or Copenhagen, would an E-Jet have made this more economical??
Alot of Airlines are now going down this route, Jetblue for instance. When you consider the cost savings promised by the C-Series, could this be worth looking at....Quite apart from being a popular move with our friends up North
!!
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I'd agree with it as a longer-term strategy. If they are serious about trying to turn Dublin into a hub, a lot of the once a day/3 or 4 times a week routes would be better served with multiple rotations in a suitably sized jet. Similarly, they seem to have hit the limit of what new routes can be developed with an A320 in Cork and Dublin. There's probably scope for more in Belfast or in a new base though.
If Ryanair want to be like Southwest, Taking a leaf out of Jetblue's book is not a bad option for Aer Lingus.
If Ryanair want to be like Southwest, Taking a leaf out of Jetblue's book is not a bad option for Aer Lingus.
Thread Starter
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I think that EI really needs to stop messing around as regards its relationship with RE; I see RE, rather than EI, as being a more likely customer for the C-110/130. There is a lot of scope for building that relationship and let's face it, even FR must be having difficulties on some of these short routes. A small jet or prop will always be a better option.
I do see EI going for A319s sooner rather than later; with 140-150 seat A319s and with RE operating a 100-110 seat jet and a 72 seat prop, there is a lot of flexibility to mix and match frequencies.
Why waste any more time? This really should have happened a long time ago.
I do see EI going for A319s sooner rather than later; with 140-150 seat A319s and with RE operating a 100-110 seat jet and a 72 seat prop, there is a lot of flexibility to mix and match frequencies.
Why waste any more time? This really should have happened a long time ago.
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Yeah, now might just be the time to order C-110/130. Whilst the orderbook in empthy (except for Lufthansas' tentative agreement), and Bombardier are will be generous to major new customers!
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Interesting comments by MOL on Aer Lingus at Belfast. I cant actually see that Ryanair are making money on there routes from BHD, most fares are a give away....
Mr O Leary should practice some of what he preaches!!
Mr O Leary should practice some of what he preaches!!