Split of Eurozone -> End of FR
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Split of Eurozone -> End of FR
With the Greek government driving the country into a tail spin and the disaster knock-on effect a default would immediately cause on eurozone partners I wonder how an airline like FR could survive without the (750.000.000 Euro) subvention?
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The break up would actually be good for the airline.
They would be able to run one currency and then (as a lot of the major airlines worldwide do) give their own 'interpretation' of the so-called 'market-rate' currency conversion and make a fortune from that.
They would be able to run one currency and then (as a lot of the major airlines worldwide do) give their own 'interpretation' of the so-called 'market-rate' currency conversion and make a fortune from that.
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Although some would herald the demise of the euro, it aint going to happen anymore than the dollar will collapse and california introduces its own californian pound to deal with its own personal debt crisis.
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So you're suggesting that if the Eurozone were to break up, trade and commerce would cease, and therefore all the airports in Europe who currently have individual deals to subsidise Ryanair to fly there (the sum of which is alleged by the Feb 2011 article to which you refer to perhaps be as high as €750m, based on extrapolation of some French data), would just decide to tear up their contracts and stop paying? Or am I missing something?
''Although some would herald the demise of the euro, it aint going to happen anymore than the dollar will collapse and california introduces its own californian pound to deal with its own personal debt crisis.''
When the first country pulls out of the Euro, then the rest of the economicly weak europartners will follow. Then only Germenay, France, Bnenlux and the Scandianvians will be left - eventually wondering how they can bail out as well.
Greece can't pay off it's debts while in and soon the rest of the zone will be fed up with supporting them. It's a matter of when, not if.
When the first country pulls out of the Euro, then the rest of the economicly weak europartners will follow. Then only Germenay, France, Bnenlux and the Scandianvians will be left - eventually wondering how they can bail out as well.
Greece can't pay off it's debts while in and soon the rest of the zone will be fed up with supporting them. It's a matter of when, not if.
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Then only Germany, France, Benelux and the Scandinavians will be left - eventually wondering how they can bail out as well.
If we end up with Germany, France, BeneLux and Scandinavians then we'll be back to how the Euro should have been in the first place. It wouldn't surprise me if it ended up stronger without the more "economically dodgy" countries dragging it down.
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End of the Euro?
I think that France and Germany will fight to keep the Euro come what may, the biggest problem is the politics in Germany of bailing out Greece, few think that the Greek government can deliver the level of cuts being asked for by the ECB IMF and so on and Greece will default, its only when, with Greece out of the Euro the focus will then shift to the remaining members of the PIGS group, who should never have been allowed to join the Euro under the Euro's own rules.
If the PIGS were outed from the Euro then inbound tourism would flourish (other than Ireland, due the weather) to those countries by virtue of a strengthening of the Euro and a devaluation of the PIGS own money.
The problem for airlines is that many countries would be tempted to play the protectionist card and that would hurt pan European airlines like Ryanair who rely on regional handouts to subsidise routes that would not be viable without such handouts.
What places like Tours loose, NCE will gain, ditto Granada v Malaga and many many airports across European have only one volume carrier FR, whilst it is true that FR have grown the market, that is now being reversed across many parts of Europe, everyone has been to Prague and the very long list of none destinations that 9.99 fares made attractive, it was for this reason that FR moved on mass into FAO,AGP,ALC,PMI,BCN and the like over the last few years, but the deals at these airports will not last, nor will FR huge cost advantage as aircraft become older and warranty and delivery deals expire. The loss of regional handouts and increasing costs is a toxic mix for FR that will in all probability force a change to its business policy in order to retain customers in what is now a mature market.
If the PIGS were outed from the Euro then inbound tourism would flourish (other than Ireland, due the weather) to those countries by virtue of a strengthening of the Euro and a devaluation of the PIGS own money.
The problem for airlines is that many countries would be tempted to play the protectionist card and that would hurt pan European airlines like Ryanair who rely on regional handouts to subsidise routes that would not be viable without such handouts.
What places like Tours loose, NCE will gain, ditto Granada v Malaga and many many airports across European have only one volume carrier FR, whilst it is true that FR have grown the market, that is now being reversed across many parts of Europe, everyone has been to Prague and the very long list of none destinations that 9.99 fares made attractive, it was for this reason that FR moved on mass into FAO,AGP,ALC,PMI,BCN and the like over the last few years, but the deals at these airports will not last, nor will FR huge cost advantage as aircraft become older and warranty and delivery deals expire. The loss of regional handouts and increasing costs is a toxic mix for FR that will in all probability force a change to its business policy in order to retain customers in what is now a mature market.
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Whatever happens to the currency, EU single skies will still exist. People will still travel - some destinations will lose and others will gain. One thing for certain is that low cost airlines have the flexibility to add routes where demand warrants it, and drop unviable routes like hot potatoes. Why single out Ryanair? What is going to happen to Olympic?
