Who will survive this and be here in 6 months ?
CHaving said that, I‘m very optimistic that we will have meaningful treatment options on the table in the next 3-6 months which will give a massive boost to the markets and the general public. it will also help us manage a likely second wave of the virus later this year. These treatments will make a huge difference until we have a vaccine available.
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while you might be thinking that way (and I admire that), I do think you think too highly of people in general.
Sure most will say never to fly Z again when issued a voucher, but in a years time they are Z is slightly cheaper than X and there they go, booking with Z...
There is a reason most, if not all, airlines were on a downward slope regarding service, perks and extra's. It's all about the money and the ones who choose more with past experience in mind (like you) don't generate enough of it.
Hopefully I am wrong, though..
Sure most will say never to fly Z again when issued a voucher, but in a years time they are Z is slightly cheaper than X and there they go, booking with Z...
There is a reason most, if not all, airlines were on a downward slope regarding service, perks and extra's. It's all about the money and the ones who choose more with past experience in mind (like you) don't generate enough of it.
Hopefully I am wrong, though..
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The reality is "most of us" will be a significantly smaller number for a few years to come.
Of the airlines that deserve to succeed I would like to single out Finnair for their excellent customer service and efficient refunding of my money. I will definitely be using them again!
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Will it be enough to stimulate enough demand? Who knows, but those that can offer the cheapest prices will be in the best position for those that do not inherit anything after all. Those offering premium travel will most probably be hit the hardest, as both companies and individuals will most likely cut back a bit on that nice but pricey business class seat. We have seen that during the financial crisis, companies did cut back on international business bookings a lot and it took quite a few years for it to come back, and that was, after all, a pretty small crisis.
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(I agree though that it has the potential to be small in comparison to this but not in its own terms)
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I'm currently booked with First choice /Tui
Being trying to contact them for 3 weeks but nobody has yet to answer the phone ( my phone battery only lasts for 2 hours)
I was happy to keep my booking and roll it over to next year but lack of information and communication wants me now to get my money back.
I know it's tough at the moment but keeping your customers in the current situation is key to staying in business.
Being trying to contact them for 3 weeks but nobody has yet to answer the phone ( my phone battery only lasts for 2 hours)
I was happy to keep my booking and roll it over to next year but lack of information and communication wants me now to get my money back.
I know it's tough at the moment but keeping your customers in the current situation is key to staying in business.
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It is a great shame that so many people believe what they are fed by the Daily Mail or similar...
If you actually go an look at the data you will find something like this:
Chances of dying if aged 85 and catching Covid-19: about 15%
Chances of dying in the next year of all causes if aged 85: about 15%
Wake up and pull the wool out of your eyes people!
If you actually go an look at the data you will find something like this:
Chances of dying if aged 85 and catching Covid-19: about 15%
Chances of dying in the next year of all causes if aged 85: about 15%
Wake up and pull the wool out of your eyes people!
..
I called BA on Tuesday 14 April to cancel a flight on 19 April. Held for less than 20 minutes. Avios returned within 24 hours and money back on my card by yesterday (Friday).
No complaints but I have been sitting on the refund call and hoping that most of the expected surge had passed. Did try about a week earlier but constantly cut off due volume of calls.
(not a regular poster as you can see but posted for balance)
No complaints but I have been sitting on the refund call and hoping that most of the expected surge had passed. Did try about a week earlier but constantly cut off due volume of calls.
(not a regular poster as you can see but posted for balance)
Ecce Homo! Loquitur...
That could cripple EU airlines compared to the US, and other, competitors.
https://www.politico.eu/article/airl...irus-bailouts/
Airlines brace for climate strings attached to coronavirus bailouts
https://www.politico.eu/article/airl...irus-bailouts/
Airlines brace for climate strings attached to coronavirus bailouts
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To come back to the initial question, just check the cash amount of the airlines plus their business model.
Below 4 months without the possibility to reform the airline and without any state participation, it's done.
My two cents.
Below 4 months without the possibility to reform the airline and without any state participation, it's done.
My two cents.
Not to worry it will all even out in the end. The state will pick winning airlines on the basis of maximizing short term political gain. Those chosen few will with the inevitable bean counter driven mentality of their executives, inflate airfares in order to goose this quarters returns and their bonuses which will open space for nimble new entrants who will undercut them but over expand on the basis of irrational exuberance that this time it is different; until it all comes crashing down the when the next world wide bad thing happens....
We have seen this movie before.
We have seen this movie before.
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I have not personally seen detailed financial updates from many companies yet but easyJet released this on Thursday:
“We estimate that our operating costs burn is in the region of £30-40 million per week, whilst the fleet is grounded. This compares to circa £125 million when flying a full schedule.”
“Upon closure of all these funding initiatives, we expect to have generated total additional liquidity of c.£1.85-£1.95bn leading to a notional cash balance of circa £3.3bn.”
“We have run scenario analysis assuming that our fleet remains fully grounded for 3 months, 6 months and 9 months,”
“This analysis has shown that we have sufficient cash reserves to remain liquid across a number of scenarios:
o During a 3-month grounding easyJet would use around £1.2bn in cash;
o During a 6-month grounding we would use around £2.2bn in cash;
o During a 9-month grounding we would use around £3.0bn in cash.”
Full report here:
Trading Update for Six Months ending 31 March 2020
CP
“We estimate that our operating costs burn is in the region of £30-40 million per week, whilst the fleet is grounded. This compares to circa £125 million when flying a full schedule.”
“Upon closure of all these funding initiatives, we expect to have generated total additional liquidity of c.£1.85-£1.95bn leading to a notional cash balance of circa £3.3bn.”
“We have run scenario analysis assuming that our fleet remains fully grounded for 3 months, 6 months and 9 months,”
“This analysis has shown that we have sufficient cash reserves to remain liquid across a number of scenarios:
o During a 3-month grounding easyJet would use around £1.2bn in cash;
o During a 6-month grounding we would use around £2.2bn in cash;
o During a 9-month grounding we would use around £3.0bn in cash.”
Full report here:
Trading Update for Six Months ending 31 March 2020
CP
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“We have run scenario analysis assuming that our fleet remains fully grounded for 3 months, 6 months and 9 months,”
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Good on EZY to lay out the costs and what preparations they have made. If the other airlines were as transparent then that would go a long way to giving confidence to their staff.
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Interesting and transparent update for sure, especially having started a sale/leaseback with lessors on 50% of the fleet - BUT what happens to the £3 billion cash burn when the return to flying might only utilise 10% of the fleet on 10% of the routes, growing at a tempered rate until all borders re-open and public confidence returns - the fact remains, getting bums on seats is not going to be immediate for 126/189 capacity aircraft so how long can they continue to operate with a less than 50% load factor... How do they last the next 24 months before the fleet can even begin to get anywhere close to load factors they are used to?
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market for 1/3 occupation?
Personally my wife and I would be happy to take 1/3 our normal number of intercontinental flights and pay 3x the price of a ticket, if social distancing etc., etc., etc. would be rigorously adhered to on those flights and at the airports. Flight revenue for the airline would be roughly the same.
I wonder whether there would be a market for that: same number of flights, 1/3 occupation, triple price; 1/3 the number of passengers per day.
At present there is an all or nothing situation - some thinking should go towards changing the business.
I wonder whether there would be a market for that: same number of flights, 1/3 occupation, triple price; 1/3 the number of passengers per day.
At present there is an all or nothing situation - some thinking should go towards changing the business.
Last edited by jan99; 20th Apr 2020 at 16:33.