EU Reject Ryanair takeover of Aer Lingus
 

The Sunday Business Post

Excellent News to say the least.

Excellent news. Made my day.

If only we had a 'like' button....

Great news! Now how long will MOL drag it out in court for?

Any other airline would have gotten an ok based on the plan.... Now MOL finds out why it is important to have friends in business and politics too... :ok:

You get what you pay for..... :D

I don't think this is the last we will hear about this.

Ryanair are going to take the EU Commission to court for political bias.

FR are going to take the EUROPEAN Union to the EUROPEAN Courts. Hhhmmm. Now lets see how that one will work out. Great for the law firms.

I think FR paying Flybe or giving them a gift which ever you want to call it dosn't sit well with the EU and if they fail to make a profit FR give them another gift. If BE were not getting cash and the EU rejected then FR may have a case but because they are being very generous to BE they have failed.

FR can't say that other takeovers have being cleared like BA/BMI etc because FR are the only ones paying carriers to take the routes to get control.

And whilst he appeals Flybe will be haemorrhaging more cash and laying off more staff thus undermining the whole charade even further.

So much for him saying he was happy to sell his shares. That was the mantra only up until 6 months ago. Its all getting a bit personal now isn't it. Wonder if the FR board will step in and order the shares to be sold off and get him focusing on the core business. Mind you the UK Competition authority still has to report and may well bring more bad news.

@MCDU2

Be careful what you ask for. If FR sell or are forced to sell Aer Lingus would be in play big time.

Indeed. A sharp drop in the EI shareprice could be an opportuntiy for an asset stripping hedge fund to enter the fray.


EI are doing well but do need to have a long term plan in place. Perhaps a partnership with EY could be the answer. But EY are still tight lipped about their plans. They are still a small airline in a big industry that is undergoing mergers and bankruptcies atm.

The Sunday Business Post

The recent results are very good but don't in themselves give EI longevity:
Aer Lingus: underlying profits rise for ‘Ireland’s civilised airline’, but beware any fall in RASK | CAPA - Centre for Aviation

Apart from the expected legal challenge to any EU decision there is the response of FR to consider. Will they flood the Irish market to try to kill EI that way? Will the long anticipated RyanAtlantic become reality? Will they make a big order with Boeing?

@ misterrible,

Nothing in life/business is certain but in this case it is almost certainly better the devil you don't know , then the fork tailed :mad: you do know...

:E

If FR fail in the courts I would expect this to happen. Flight for flight price undercutting in Europe certainly. RyanAtlantic maybe will have to wait a bit longer.

Personally I don't see either happening. FR's business model does not consist of winning head-to-head competitions with other airlines, but of exploiting local monopolies. And nothing they do confers any advantage over others already operating a transatlantic route. A twenty-five-minute turnaround at EWR, even if it were achievable, does not make any difference when an FR aircraft, like all others, gets to cross the Atlantic and generate revenue just twice in each twenty-four-hour period.

Aer Lingus/Flybe Statement
 

Aer Lingus: Ryanair should never have launched takeover bid | Irish Examiner

Ryanair says EC intends to block Aer Lingus deal - RTÉ News
Not suprised when they will not be getting lots of cash.

Air Asia X proved that you don't have to have the same schedule every day.

There's no reason why a fully utilised A330 couldn't do three transatlantic crossings every 24 hours. Using DUB-JFK as an example, you could have:

0700 DUB arrives 0900 JFK
1100 JFK arrives 2200 DUB
2400 DUB arrives 0200 JFK
0400 JFK arrives 1500 DUB
1700 DUB arrives 1900 JFK
2100 JFK arrives 1000 DUB

...etc. Okay, there's no time for maintenance in that, but with a large enough fleet you can rotate a spare in and out.

There are several flaws in your argument.

That type of irregular scheduling discourages high revenue passengers.

Arriving in JFK at 0200 is not going attract much high yield, and nor is departing at 0400. You also have to think of crew rostering, night flying curfews (I don't know what the curfew is at JFK if any).

And that's just looking at the basics.

Also I'm pretty sure you're only allowed fly west/east across the Atlantic at certain times of the day, westbound in the day, eastbound at night.

You can fly any way at any time, however against the flow you will be at a sub optimal flight level.

:confused: Who's stopping you? As long as the airport is open, who's dictating when you can fly where?

There are several daytime eastbound flights which leave NYC/BOS in the morning and arrive in Europe (mostly LHR) in the evening. The reason there aren't more is that most passengers expect an overnight flight (spend your night travelling rather than a business day or a holiday day), plus an evening departure and morning arrival gives more short-haul connection opportunities on each end.

Absolutely true - so the question is whether getting a couple of extra round trips worth of revenue out of the aircraft every week outweighs that loss.