EasyJet - 4

[SWBKCB]

321

News of the 321's seems to have effectively buried the news of the record winter losses.

[TBSC]

Not at the stock exchance, the share price is 7% down today.

[AndrewH52]

Originally Posted by bjones4

Going by the images it also looks like easyJet is the first customer for the ultra high density A321Neo which features two overwing exits and no Door 2 forward of the wing.

The press release states 235 seat configuration. Maximum seating on the A321 Neo is 239

[Seljuk22]

Hamburg base will be closed next summer. Currently there are 3 based aircrafts. Capacity will be cut by 70% - down from 1.5 million to 0.5 million passengers per year
https://www.nytimes.com/reuters/2017...burg.html?_r=0
Easyjet schließt Basis am Hamburger Flughafen - airliners.de

[FRatSTN]

EasyJet doing their usual running away from the competition. Wasn't all that long ago they closed FCO in favour of NAP and VCE.

Going to take EZY some doing to get to a number 1 or 2 position in BCN, also one of their newest crew bases. On that basis do we expect BCN to be closed in the next year or two? And speaking of NAP, Ryanair has made a rather sudden appearance there.

The point being... it's just the nature of industry and EZY cannot realistically expect to be a sustainable number 1 or 2 at any more than five or ten airports. Wasn't all that long ago that HAM along with SXF were both the focus of future growth for them in Germany.

In addition, most of EZYs main European airports i.e. AMS, CDG, LGW etc. are slot constrained anyway with less flexibility and operational resilience. Do they really need to strengthen their position at such airports much further? Is now not the time they should be looking at other, smaller markets and regions?

With their current strategy, EZYs market share in Europe as a whole is going to suffer with the rate of FR, W6 and DY expansion that's for sure! Or is that somehow not so important to them?

[tws123]

Reported elsewhere that EZY will be basing a 4th aircraft at SEN next year with new routes and an increase in frequency on existing routes.

[TBSC]

What can they do? Competetition is getting stronger and stronger; their business model is not unique any more; financials seem to be slipping; quite a number of cancellations reported last year; unionized workforce is not helping either (no debate please, just stating the obvious from the company's point of view). The switch to the 321 is a tad late and they really seem to run from the competetition which can't be continued forever. I really don't see what they want to do.

[toledoashley]

Cost per seat is really too high, which is why I think the 321 is part of the reason to help that. Hamburg we have to remember is no a number 1 or number 2 position, so isnt central to their plan.

I'm surprised no Canaries base, and smaller cities are being mopped up by Volotea.

[davidjohnson6]

This all sounds pretty defeatist to me. Easyjet is one of the 2 largest LCCs in Europe and in a strong financial position. Twenty years ago as a small fledgling airline which could easily have been crushed by the competition, they made a name for themselves for being prepared to go up against the big airlines and triumphed. BA managed to turn itself around from being stuffy old farts 20 years ago to being more than able to take on its LCC rivals in Europe. Perhaps Easyjet has got a little too complacent (dare I say it - prematurely become an old fart) and needs to inject a little more entrpreneurial spirit ?

[racedo]

Originally Posted by davidjohnson6

BA managed to turn itself around from being stuffy old farts 20 years ago to being more than able to take on its LCC rivals in Europe. Perhaps Easyjet has got a little too complacent (dare I say it - prematurely become an old fart) and needs to inject a little more entrpreneurial spirit ?

DJ you really thnk BA is able to take on LCCs in Europe ?

20 years ago had a huge selection of routes in Europe from them and airports in UK......................... now aside from Heathrow, a bit at Gatwick and Manchester they have a token presence in UK.

BA is irrelevant for most travellers and anybody under 30 will not have flown them unless it was paid for by parents when younger in Europe.

[davidjohnson6]

racedo - yes I do think BA (or at least IAG) can take on the LCCs for flights within Europe. About 10 or 15 years ago were at risk of going bust - they have figured out ways to compete against LCCs for flights to/from London, cut their bloated cost base and provide one way fares that when travelling to/from London I have found are certainly competitive (and sometimes cheaper) than LCCs. Vueling is not the largest LCC but can most definitely compete on a pan-European basis with the other LCCs.

You sometimes make good points on this forum, but your credibility is harmed when you write things like "BA is irrelevant for most travellers and anybody under 30 will not have flown them unless it was paid for by parents when younger in Europe."

If BA can turn themselves around from the old fart brigade, then Easyjet as Europe's 2nd biggest LCC with a strong financial position should be able to rouse themselves from their slumbers as well.

[Flightrider]

There has to be some logic behind EZY acquiring Volotea to deliver an EU AOC, market "join the dots" presence and an outlet for retiring A319s to replace 717s, surely?

[22/04]

There are some things worth defending and some not.

Easy cannot compete on cost grounds with RYR or DY. Their core market, the UK accounts for 45% of the business and that needs to be protected - the position oat LGW, LTN and some regional bases is strong at present and they have a unique niche base at SEN where markets are being developed by Stobart. Where does STN fit- ok so long as we can make money there would be my judgement.

The EU is much less certain. LH and its subsidiaries have been particularly successful at defending the German market, one which tends to be conservative - so difficult. France is also quite brand loyal and there will be some negative feeling as a result of BRXEIT- I have more than one UK friend who things the UK has been very selfish- she won't be the only one so some difficulties their too but with a more vulnerable incumbent. Less impact for BREXIT in Scandinavia maybe and the Netherlands. Don't ask me to analyse Italy but RYR are quite strong there.

So EZY's approach as viewed form the outside doesn't look particularly silly to me. As I have said before the no.1 issue for a public company quoted in London is to protect share price. That is where the interest will be focussed even at the expense of some consolidation in the short term

[inOban]

I thought that Easyjet was financially much stronger than DY? They've dropped several winter routes from EDI.

[SWBKCB]

"BA is irrelevant for most travellers and anybody under 30 will not have flown them unless it was paid for by parents when younger in Europe."

add "outside the South East" to under 30 to that and he has a point.

[pwalhx]

Originally Posted by davidjohnson6

BA managed to turn itself around from being stuffy old farts 20 years ago to ....

a stuffy old farts airline that does things on the cheap

[racedo]

Originally Posted by davidjohnson6

You sometimes make good points on this forum, but your credibility is harmed when you write things like "BA is irrelevant for most travellers and anybody under 30 will not have flown them unless it was paid for by parents when younger in Europe."

I asked that question recently at a social gathering of about 40 people, people over 60 said they tend to still use BA just like they use M&S.

The 30-60 year olds said they used to use but now if business paying they do, for few it was airline of choice, younger mob use Easy / Ryanair and see BA as the one their parents or grandparents use.

Tell them of the old days before LCCs and they laugh and ask are you being serious.

[Skipness One Echo]

Racedo if BA is competitive then people fly BA. There are just as many older people on EZY and younger people on BA, have used both intensively and your assertion is frankly, utter tosh. (But in line with your usual agenda....)

There are loads of real reason not choose BA but age and brand loyalty in p2p price sensitive cohorts ain't one. As Cruz and WW understand, it's ALL about pricing.

[TOM100]

At some point I guess a LCC like U2 when recognising TUs, process, management tips from being a disruptor to acquiring legacy characteristics (and cost and culture) unless you ruthlessly protect it a la FR ??

[01475]

Originally Posted by Skipness One Echo

Racedo if BA is competitive then people fly BA. There are just as many older people on EZY and younger people on BA, have used both intensively and your assertion is frankly, utter tosh. (But in line with your usual agenda....)

There are loads of real reason not choose BA but age and brand loyalty in p2p price sensitive cohorts ain't one. As Cruz and WW understand, it's ALL about pricing.

Part of the problem is that the LCC airlines have set themselves up in such a way as that you may not remember to check BA's prices, or if you do you'll do it via someone like Expedia who will also present you with prices for a lot of competitors.

Of course the other thing to bear in mind is that the nature of BA's route network makes them irrelevant to the type of traveller that a lot of young people outside London will most frequently be. If you're looking for a weekend break from the regions to [I don't really care; somewhere hot / a nice city / somewhere with cheap beer] then you will start by looking to see where Ryanair / EasyJet / Wizz / Jet2 fly to from airports convenient to you. With statistically insignificant exceptions BA do not offer these flights; they only offer the type of flights you'd been needing if you were going somewhere for work.