EasyJet - 4
Join Date: Oct 2007
Location: Essex
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Is this because easyJet is afraid of Ryanair? There's no escape! (For example, I see Ryanair is starting Gatwick-Madrid services and is bound to take passengers from easyJet and Air Comet rather than from BA.)
Join Date: Jul 2003
Location: LGW
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Ryanair from LGW - MAD is hardly likely to effect EZY that much as they operate 3 times daily service which runs at 97% load factor, whereas FR will operate a once daily service with poor flight times.
INV will not be dropped from LGW and it has been a year round service from both LTN and LGW for over 7 years now.
INV will not be dropped from LGW and it has been a year round service from both LTN and LGW for over 7 years now.
Join Date: Aug 2004
Location: Hemel Hempstead
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Do EZY have a new booking interface, saw it quickly at work, but at home im just getting the old look site. The main page looks the same, but the page after encorperates both the flight schedule and the added services on one page with a larger amount of bright orange!!!
Join Date: Apr 2008
Location: 42 34N, 3 02E
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EasyJet losses double to £M130
Depressing sign of the times, however EJ board are upbeat!
BBC NEWS | Business | Easyjet losses more than double
WP
BBC NEWS | Business | Easyjet losses more than double
WP
WhiskeyPapa - there is a reason behind the large increase in loss which should be short-term rather than a long-term problem.
Just before crude oil hit its peak of US$147 per barrel, everyone was panicking that crude might hit US$250 or even higher. Easyjet decided to substantially hedge their future fuel needs at the price then available in the market, preferring to avoid the risk of fuel going much higher.
Shortly after EZY completed the fuel hedge, Lehman went bust, people suddenly took the recession seriously, the price of jet fuel plummeted by about 75% and airlines were able to purchase jet fuel at a much lower price. You could think of this as being similiar to someone who bought a house in late 2007 just before the economy went horribly wrong and who now has a big dose of negative equity.
Because EZY are now committed to paying the original higher price for fuel, it has to be recognised in the accounts as a loss, thus making the latest results look a bit cr*p.
No, this is not good for EZY, but this is a one-off accident, rather than a serious multi-year concern for the company.
Just before crude oil hit its peak of US$147 per barrel, everyone was panicking that crude might hit US$250 or even higher. Easyjet decided to substantially hedge their future fuel needs at the price then available in the market, preferring to avoid the risk of fuel going much higher.
Shortly after EZY completed the fuel hedge, Lehman went bust, people suddenly took the recession seriously, the price of jet fuel plummeted by about 75% and airlines were able to purchase jet fuel at a much lower price. You could think of this as being similiar to someone who bought a house in late 2007 just before the economy went horribly wrong and who now has a big dose of negative equity.
Because EZY are now committed to paying the original higher price for fuel, it has to be recognised in the accounts as a loss, thus making the latest results look a bit cr*p.
No, this is not good for EZY, but this is a one-off accident, rather than a serious multi-year concern for the company.
Join Date: Apr 2008
Location: Paris
Age: 48
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yes hedging and easter swift probably one-off accident, but the increase in cost even excl. fuel is quite a bad news, especially considering the gap with Ryanair was already big and the fact that Ryanair costs will probably go down again at last FY report (excl. fuel)
This is a very bad news and may proove an inability of the management to be as good as Ryanair in the cost cutting part of the business, which is the core part of LCC...
I remember they close DTM for crew efficiency, and they just declared that crew efficiency didn't improved! so why did they close DTM if it had no effect???
Even the redundancies didn't have any effect on costs! that's shocking!
This is a very bad news and may proove an inability of the management to be as good as Ryanair in the cost cutting part of the business, which is the core part of LCC...
I remember they close DTM for crew efficiency, and they just declared that crew efficiency didn't improved! so why did they close DTM if it had no effect???
Even the redundancies didn't have any effect on costs! that's shocking!
Join Date: Oct 2007
Location: Essex
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"Jettesen",
You say that Ryanair's entry on the Madrid-London route is "hardly likely to effect EZY that much". I'd agree with you if we were in favourable economic times and the market was growing. Ryanair might be scheduling only one flight daily in each direction (albeit with 189 seats to fill) but exactly where will their passengers come from except mainly from the existing "low cost" operators?
I predict that easyJet will be unable (or unwilling) to match Ryanair's fares. Given the dire state of the Spanish economy I can see Ryanair being the winner and easyJet the loser. Who would turn their nose up at a return fare of 12.4 euros (or £11 if starting in London) before optional charges? Not me! I'd be daft to fly easyJet.
The schedules look unattractive from some UK passengers' point of view but remember that a midnight arrival into Barajas is not seen in the same way by the Spanish (I think last departures on the Madrid metro, including from Barajas, are around 1.30am) and that an 8pm departure from London will be attractive to those who can only travel after work.
Ryanair may only be scheduling one flight a day right now but don't be surprised if the frequency is increased. This is precisely what happened, for example, on the Stansted-Alicante route. I know this route very well and have switched from easyJet (which inherited me from Go) for most of my trips simply because Ryanair offers better value (plus better punctuality and a much more civilized boarding "experience", especially at Stansted).
Ryanair's entry on the Madrid-Gatwick route will definitely hurt easyJet.
You say that Ryanair's entry on the Madrid-London route is "hardly likely to effect EZY that much". I'd agree with you if we were in favourable economic times and the market was growing. Ryanair might be scheduling only one flight daily in each direction (albeit with 189 seats to fill) but exactly where will their passengers come from except mainly from the existing "low cost" operators?
I predict that easyJet will be unable (or unwilling) to match Ryanair's fares. Given the dire state of the Spanish economy I can see Ryanair being the winner and easyJet the loser. Who would turn their nose up at a return fare of 12.4 euros (or £11 if starting in London) before optional charges? Not me! I'd be daft to fly easyJet.
The schedules look unattractive from some UK passengers' point of view but remember that a midnight arrival into Barajas is not seen in the same way by the Spanish (I think last departures on the Madrid metro, including from Barajas, are around 1.30am) and that an 8pm departure from London will be attractive to those who can only travel after work.
Ryanair may only be scheduling one flight a day right now but don't be surprised if the frequency is increased. This is precisely what happened, for example, on the Stansted-Alicante route. I know this route very well and have switched from easyJet (which inherited me from Go) for most of my trips simply because Ryanair offers better value (plus better punctuality and a much more civilized boarding "experience", especially at Stansted).
Ryanair's entry on the Madrid-Gatwick route will definitely hurt easyJet.
Join Date: Apr 2008
Location: Paris
Age: 48
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the schedule is bad but of course it will hurt easyJet. 4 or 5 seats of a plane on average make the profit of a flight, so there is no doubt Ryanair will grab a minimum of 2 easyJet PAX per flight, so easyJet profitability will be probably hugely hurt no doubt about that
I assume there is space anyway for both airlines to share this market and be profitable on it, even if easyJet performances will drop year-over-year
I assume there is space anyway for both airlines to share this market and be profitable on it, even if easyJet performances will drop year-over-year