Michael O'Leary - "only four airlines will survive"....
Beagle - hardly a little operation with 160 odd aircraft (even if a few are having a rest for the winter). Given that MOL is still feted as a saviour in Renton because of his 2002 orders I am sure that Boeing will happily deal again and not see it as a lowering of standards.
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Oh, sure, Boeing and Airbus will happily sell some planes to MOL, if he pays for it.
But low-cost long haul will never work! No way; unless Ryanair deliberately operates those trans-atlantic routes at a loss, just to enhance the European network.
In this case we will see how good MOL's calculations were.
AirBerlin tried that, when they inherited LTU's fleet of A330's, and it turned out to be a disaster.
But low-cost long haul will never work! No way; unless Ryanair deliberately operates those trans-atlantic routes at a loss, just to enhance the European network.
In this case we will see how good MOL's calculations were.
AirBerlin tried that, when they inherited LTU's fleet of A330's, and it turned out to be a disaster.
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You may think he is full of crap, but he ( as he himself claimed) "raped" Boeing in the past & could do so again. If Boeing can at some stage actually get around to deivering the 787 there are a lot of Airlines out there with embarrasingly large orders that might be inclined to hold off a while. Boeing won't want to see rows of "wunderjets" standing idly by . . . et voila.
Airlines like Kingfisher have been happy to let the likes of Arik Air pick up new build airframes that they ordered in better times, so I don't think there is any
market shortage of widebodies probably looking for a "loving home"
You should never underestimate his business acumen (and before we discuss fuel hedging I don't think Southwest fared any better) whatever you think of his ethics. Don't want to see the roster though. . . . Good news, only a 2 sector day
Airlines like Kingfisher have been happy to let the likes of Arik Air pick up new build airframes that they ordered in better times, so I don't think there is any
market shortage of widebodies probably looking for a "loving home"
You should never underestimate his business acumen (and before we discuss fuel hedging I don't think Southwest fared any better) whatever you think of his ethics. Don't want to see the roster though. . . . Good news, only a 2 sector day
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I read an article somewhere today that Southwest & Continental had both lost a lot of money by screwing up hedging,don't know exactly what period was being referred to, think it was written in here somewhere.
They ( SW) had made money but a lot less than they would have done. I stand to be corrected but sure I read that today.
I know he is a bit gobby & you can call it dirty tactics, but nonetheless would you bet a months wages on Skyeurope/ Air Berlin & a few others being around next Spring ? nope me neither. I don't wish any of them misfortune, we don't need more Boeing drivers on the market ta very much, MOL may not be entirely wrong even if he is a "little"
prone to creative exaggeration.
Edited to say, the article in fact said SW fuel hedging contracts had lost between 2 & 2.5 billion $ in value due to drop in fuel prices which may have effect on 4th quarter results, however they declared themselves happy anyhow at drop in prices.
Seems with hedging in these times you screw yourself whichever way you play it.
They ( SW) had made money but a lot less than they would have done. I stand to be corrected but sure I read that today.
I know he is a bit gobby & you can call it dirty tactics, but nonetheless would you bet a months wages on Skyeurope/ Air Berlin & a few others being around next Spring ? nope me neither. I don't wish any of them misfortune, we don't need more Boeing drivers on the market ta very much, MOL may not be entirely wrong even if he is a "little"
prone to creative exaggeration.Edited to say, the article in fact said SW fuel hedging contracts had lost between 2 & 2.5 billion $ in value due to drop in fuel prices which may have effect on 4th quarter results, however they declared themselves happy anyhow at drop in prices.
Seems with hedging in these times you screw yourself whichever way you play it.
Last edited by captplaystation; 3rd Nov 2008 at 21:38.
I think not MOLWillie, BA's target this year is to break even. Even if they lost £3mil a day they have enough cash in the bank tolast two years.
Others are not so strong......
Others are not so strong......
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M O'L not so safe
The man himself has a major Achilles heel - and he knows it. The wind and the puff are to intimidate others but in fact it is his own staff who should be looking around. It will all catch up with you Michael - pride comes before a fall. And the wee folk wont help you this time.
And so many new airframes all looking for another renter!
And so many new airframes all looking for another renter!
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What a self publicising pilchard that guy is!
A quick surf on the net brings up 62 low cost carriers alone in Europe! And how many more full service carriers? So more than 58 plus others will go bust eh Leo?
The guy is so uneducated about the AIRLINE industry it is funny.
Cannot wait to see him come undone.
A quick surf on the net brings up 62 low cost carriers alone in Europe! And how many more full service carriers? So more than 58 plus others will go bust eh Leo?
The guy is so uneducated about the AIRLINE industry it is funny.
Cannot wait to see him come undone.
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For accounting purposes Southwest had to mark to market their fuel position. This means that with fuel at 140 d/barrell they where worth XXXmillions (ie they had a massive profit on the fuel postion alone)
now that fuel is 60 d/barrell they had to adjust their account to the fact that they are only only worth XXX millions (ie the massive profit on the fuel postion is no longer there). The difference of the price at which they hedged (51) and the actual price has reduced.
In any case they hedged at 51 and they are sitting very pretty indeed.
now that fuel is 60 d/barrell they had to adjust their account to the fact that they are only only worth XXX millions (ie the massive profit on the fuel postion is no longer there). The difference of the price at which they hedged (51) and the actual price has reduced.
In any case they hedged at 51 and they are sitting very pretty indeed.
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The little lunatic from the peat bogs should be made to explain his comments and what 'facts' he has as an industry leader that allow him to make such comments that do indeed put fear into the public.
At a time of financial uncertainty across the aviation industry, someone that feeds off it and makes comments that could ultimately cause further distress is not only a disgrace but liable to all those that end up on the dole queue because of it.
If he can produce the evidence then fair enough. If not he should be made to apologise.
There is a crisis in the banks at the moment but you don't see any bank bosses coming out and telling the public that they should not bank with bank xxxx because they will go under. That is because they know that confidence in the whole industry affects everyone. The little peat bog rat has no morality and is interested in himself and to hell with anyone else.
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At a time of financial uncertainty across the aviation industry, someone that feeds off it and makes comments that could ultimately cause further distress is not only a disgrace but liable to all those that end up on the dole queue because of it.
If he can produce the evidence then fair enough. If not he should be made to apologise.
There is a crisis in the banks at the moment but you don't see any bank bosses coming out and telling the public that they should not bank with bank xxxx because they will go under. That is because they know that confidence in the whole industry affects everyone. The little peat bog rat has no morality and is interested in himself and to hell with anyone else.
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Here @ waterside we value MOL's comments and it does not serve some of you to heap criticism on him. He has been and is very sucessful and may well know a great deal more on this industry than most of us put together. I doubt that there are any threaders that have sat at the table with Boeings and told them just how much he will pay them. The guy has changed the face of airline travel and still needs to do a lot more to break the mould.
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He is clever....but
A lot of what HZ123 says about MOL and his achievements are true. However he seems to continue to believe that all publicity is good publicity which it isn't. He is a divisive figure as this thread shows only too clearly. Here in Luton we tend to keep a lot more of our opinions to ourselves. You won't find Andy Harrison specualting on who is or isn't going bust because confrontational comments always cause somebody offence - and they may well be people who could be your customers. Ray Webster was much the same and Sir Stelios himself tends to keep his nose out of confrontation. Still, you can't deny that MOL is entertaining!
Finally no airline - even RYR - is immune to the challenges all airlines are currently experiencing, but if I was a betting man I'd put money on EZY to hang on as long as anybody else. But what do I know!
Finally no airline - even RYR - is immune to the challenges all airlines are currently experiencing, but if I was a betting man I'd put money on EZY to hang on as long as anybody else. But what do I know!
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Against my advice, elderly, well-travelled and intelligent friends of ours decided to travel on Ryanair for a break to Spain. I did the whole process, on their computer, printed everything out, pointed out the conditions and rules, highlighted the relevant parts, and warned them about the rigorously applied restrictions.
The result was that they spent 3 weeks prior to departure working themselves into a state of nerves about it, and when they travelled they were charged extra for hand luggage which had been weighed and measured and which apparently conformed to the parameters. The agent forced them to pay for new boarding passes as they'd folded the pre-printed ones across the bar code and it was apparently not machine readable.
They found the experience on board the flight thoroughly unpleasant due to all the noise, announcements, haranguing, and the surly and clearly overworked cabin crew, and as a result had a miserable trip. This airline is to be avoided by anyone except those who enjoy being flagellated at every step of the process.
They abandoned Ryanair for the homebound flight and bought tickets on easyJet - as they said 'a totally different and superior experience in every way.'
The result was that they spent 3 weeks prior to departure working themselves into a state of nerves about it, and when they travelled they were charged extra for hand luggage which had been weighed and measured and which apparently conformed to the parameters. The agent forced them to pay for new boarding passes as they'd folded the pre-printed ones across the bar code and it was apparently not machine readable.
They found the experience on board the flight thoroughly unpleasant due to all the noise, announcements, haranguing, and the surly and clearly overworked cabin crew, and as a result had a miserable trip. This airline is to be avoided by anyone except those who enjoy being flagellated at every step of the process.
They abandoned Ryanair for the homebound flight and bought tickets on easyJet - as they said 'a totally different and superior experience in every way.'
