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Willie Walsh's Opinion....Has it validity ?

  • 04-06-2013 9:24am
    #1
    Registered Users, Registered Users 2 Posts: 14,004 ✭✭✭✭


    Willie Walsh's views on the Ryanair bid for Aer Lingus....

    http://www.independent.ie/business/irish/aer-lingus-better-off-being-owned-by-ryanair-says-willie-walsh-29314956.html

    Question is,can the Ryanair phobic,Micko haters,if thats what they are,come to terms with what would appear to be a somewhat valid point from a well placed (and equally competition orientated) Irishman ?


    Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.

    Charles Mackay (1812-1889)



Comments

  • Closed Accounts Posts: 8,061 ✭✭✭keith16


    I'm struggling to understand his poorly written point:
    Ryanair wants Ireland and, whatever you say about Michael O'Leary, he's proud to be an Irishman, lives here and has created one of the most valuable airlines in the world.How is that less attractive to Ireland than Abu Dhabi?"

    A valuable airline it may be, but that is only in the interest of shareholders, not consumers.


  • Registered Users, Registered Users 2 Posts: 232 ✭✭Bessarion


    keith16 wrote: »
    I'm struggling to understand his poorly written point:



    A valuable airline it may be, but that is only in the interest of shareholders, not consumers.
    I agree. The tone of WW statement is what is best for Ireland? But MoL publicly states that his interests are those of Ryanair Ltd and its shareholders.

    Its not as if WW was thinking of the interests of the nation when he was CEO of EI. His job was (and now is) to run an airline.

    WW seems to imply that Ethiad have no interest in Ireland and that Ireland is better served by using LHR as a gateway to Asia. Seems a bit biased to me. Any airline will leave a market if the demand (and thus yield) drys up....that includes BA, FR and EY. (I doubt EI would be able to leave as they are so Irish centric)

    WW doesn't want EI to tie up with Ethiad. BA previoulsy stated that 10% of their traffic is from Ireland, even if only half of that is through the EI codeshare they will not want to lose it. Surely the nation would be better served having several competing ways to travel worldwide?


  • Registered Users, Registered Users 2 Posts: 29,346 ✭✭✭✭homerjay2005


    keith16 wrote: »
    A valuable airline it may be, but that is only in the interest of shareholders, not consumers.

    :confused::confused::confused: for consumer Ryanair is a dream airline, they tick 3 boxes -

    Cheap
    On time
    safe.

    thats all that matters for me and i use them 60 times plus a year.


  • Closed Accounts Posts: 572 ✭✭✭relaxed


    :confused::confused::confused: for consumer Ryanair is a dream airline, they tick 3 boxes -

    Cheap
    On time
    safe.

    thats all that matters for me and i use them 60 times plus a year.

    Agree 100% but most people don't seem to get that, they seem to want airlines to fall over them, serve them a free drink and let them sneak 25kgs onto a 1 hr bounce to London along with extra legroom.

    We live on an island, of all the people in Europe we need cheap flights, there is no other way out, except ferries obviously, which would take days to get us to Paris or Munich, for example.


  • Registered Users, Registered Users 2 Posts: 232 ✭✭Bessarion


    :confused::confused::confused: for consumer Ryanair is a dream airline, they tick 3 boxes -

    Cheap
    On time
    safe.

    thats all that matters for me and i use them 60 times plus a year.
    And I completely agree with you there. They do exactly what you want them to.

    However the statement by WW implies that FR taking over EI and thus having 90% of all traffic out of Ireland is a good thing for the nation. I disagree with this point.

    -My summer holiday this year is booked with EI. The airport is closer to my rented house and the times are better for the kids. I have prebooked seats together for me and the kids. (6ABCD!) Thus no scrum at the gate. Bags are checked in. Menu onboard is a bit better for the kids too. The price was a little more for EI (approx 15% incl bags and pre-booked seats for 4) but I have travel insurance and know that EI will not abandon in the event of a diversion of tech snag (which I doubt will happen)
    -Now, next week when I am going over to London to see a mate. I am going FR....short flight, handluggage only, travelling alone so don't care about the getting a 'bad' seat. Price was fine, and STN actually suits better than LGW or LHR.

    2 flights, 2 different sets of needs, 2 options available to me. Best scenario for consumers.


    Back on topic: I think the opinon of the head of IAG does have validity but it has to be viewed through the lens of his subjective opinion. Remember that BA stand to get 75% of the EI slots at LHR if FR are allowed to takeover EI. (Based on the recently shut down "unprecedented remedy package.")


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  • Registered Users, Registered Users 2 Posts: 24,924 ✭✭✭✭BuffyBot


    Bear in mind that WW isn't exactly a neutral player in this. EY is a looming presence and he'd much rather EI went to FR (which would keep it very much out of his hair) than in the hands of a major competitor, alongside the slots issue.


  • Closed Accounts Posts: 8,061 ✭✭✭keith16


    :confused::confused::confused: for consumer Ryanair is a dream airline, they tick 3 boxes -

    Cheap
    On time
    safe.

    thats all that matters for me and i use them 60 times plus a year.

    I'm speaking, as I am sure WW was, in financial terms. I don't dispute the above 3 boxes, for it to remain that way, certainly in terms of the cheap box, competition is needed. FYR are aiming to kill the competition.


  • Registered Users, Registered Users 2 Posts: 5,818 ✭✭✭donvito99


    WW wants Heathrow slots. His opinion is worthless.


  • Registered Users, Registered Users 2 Posts: 612 ✭✭✭Dublinflyer


    I have to agree with dv99 here. All WW is after is the slots in LHR and nothing more. He wants to expand BA and the lang haul flights are the most profitable but without the EI slots he has to cull one of his own.


  • Registered Users, Registered Users 2 Posts: 17,784 ✭✭✭✭A Dub in Glasgo


    The view from WW might have validity if he did not have a vested interest in who takes over Aer Lingus. To the IAG world, Ryanair getting hold of AL is the best possible solution for the IAG mecca that is Heathrow


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  • Closed Accounts Posts: 1,657 ✭✭✭brandon_flowers


    I have to agree with dv99 here. All WW is after is the slots in LHR and nothing more. He wants to expand BA and the lang haul flights are the most profitable but without the EI slots he has to cull one of his own.

    Expanding for profit is one part of it, he also has to keep the others out of LHR to maintain what he has already.


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    Let's just take a balanced look at who's interested in what here:

    WW: Interested in IAG making a profit.
    MOL: Interested in FR making a profit.
    EI: Interested in EI making a profit.
    EY: Interested in EY making a profit.

    So with that in mind;
    Anything WW says he is saying to advance IAG in making more profit.
    Anything MOL says is in to try and have FR make more profit.
    Anything EI does is so that EI will make more profit.
    Anything EY does is done so that they make more profit.

    WW doesn't care about Ireland being well served, he wants to make a profit, and increase that profit.
    EY don't care about Ireland being well served, they just want to a bigger profit.
    FR don't care about Ireland being well connected, they just want to make a bigger profit.
    EI don't care about Ireland being well connected, they just want to make a bigger profit.

    The thing to remember is;
    If one airline holds 90% of the traffic out of an island they can afford to charge whatever they want.
    If one airline has near limitless cash reserves (2 years from what I've heard), they can afford to offer flights at €1.00 on a route until the competition pulls off and have shown in the past that they will do this.
    EI is interested in making a profit, but it needs to serve the Irish market to do this, IAG and EY and FR do not, they are not linked only to this island.

    So there's just some FACTS about the issues at hand.


  • Closed Accounts Posts: 572 ✭✭✭relaxed


    I have to agree with dv99 here. All WW is after is the slots in LHR and nothing more. He wants to expand BA and the lang haul flights are the most profitable but without the EI slots he has to cull one of his own.

    Would it not be feasible for BA to expand flights from Manchester etc. to some of the more obvious routes like New York?

    Also could they build a hub out of Spain somewhere, so for example a person in Edinburgh could fly to a hub in Spain then onto the middle east or China for example.

    The point being, are LHR slots the be all and end all for him, surely some sort of secondary hub in Spain would balance things out, easing overdependence on LHR as it will always be chaotic, and stuff like bad weather might not effect a second hub in Spain.


  • Registered Users, Registered Users 2 Posts: 3,941 ✭✭✭pclancy


    What has MOL actually said he would do to Aer Lingus if he owned a larger percentage?

    I dont see him ever scrapping the brand as its too valuable to many and offers a very different service model. Can it not only be a good thing that his business acumen is applied to Aer Lingus to strengthen and develop its position, rather then cut it to pieces, sell all its slots and scrap its branding?

    I totally see MOLs point that this is something Irish that should stay Irish in the interests of Ireland. Aer Lingus is small fry in the global scale of things but to Irish people its a reminder of home and Irishness that I would think Etihad might erode for their own purposes.


  • Registered Users, Registered Users 2 Posts: 3,941 ✭✭✭pclancy


    keith16 wrote: »

    A valuable airline it may be, but that is only in the interest of shareholders, not consumers.


    And this is something new? No company in the world actually gives a toss about its customers, but they know if they appear to treat them well, give them good service and make a good product then they'll make loads of sales to those customer and therefore the company's value and share price will go up. That's the end goal for every airline and/or company in the world. Same with Microsoft, Toyota, Facebook, you name it!

    Its basically up to them how well they treat you and what business model they impose through their terms of service and the price you pay will often reflect that. But its only at the AGM in front of the shareholders that the true reason a company exisits comes out.

    To

    Make

    Money.

    Ryanir, IAG, Etihad all want to make the fastest buck here and move on to their next phase of corporate enhancement. What happens to Aer Lingus long term will be defined by how much profit one of them can squeeze from it, not really what the consumer thinks is best for their national airline.


  • Registered Users, Registered Users 2 Posts: 232 ✭✭Bessarion


    pclancy wrote: »
    What has MOL actually said he would do to Aer Lingus if he owned a larger percentage?

    I dont see him ever scrapping the brand as its too valuable to many and offers a very different service model. Can it not only be a good thing that his business acumen is applied to Aer Lingus to strengthen and develop its position, rather then cut it to pieces, sell all its slots and scrap its branding? .....

    Well he did say that he would reduce it by 40% by hiving off some routes to Flybe.....then he mentioned outsourcing most of the jobs (Pilots, cabin crew and engineers only to be kept) Then there is the offer to sell LGW and LHR routes to IAG. Sounds pretty close to cutting it to pieces to me.


  • Registered Users, Registered Users 2 Posts: 3,941 ✭✭✭pclancy


    Indeed.

    I would have thought they would just keep it as it is and build the brand making the most of the two very different products on offer by each company.

    But who am I, I've never run an airline :)


  • Registered Users, Registered Users 2 Posts: 612 ✭✭✭Dublinflyer


    Completely agree with what you are saying about airlines all wanting to look after their own and maximize profits, and so they should. That's why anybody is in business regardless of the sector. What does need to be protected is how a business treats it's customers and if any one airline has a monopoly on a route or airport the service it gives the customer will slip in the name of cost saving while the cost of flights will go up. Look at Aer Lingus pre ryanair. Sure the service was not bad but you had to pay £300 for a flight to London.

    Any route expansion at LHR will have to be balanced by a reduction of another. The runways are at capacity with zero room to maneuver. Any sort of a runway incident causes massive delays and cancellations. Look at the BA incident last week and the mess it caused. I was in LHR once waiting on a flight home ans a thunderstorm passed over the field for 20 minutes and there was a 5 hour delay as a result. I personally try to avoid LHR, and CDG, as much as possible as there is a high risk or delays and it's always a stressful experience using it. I am sure BA could expand it's operations in MAN but LHR seems to be the only place where passengers are willing to fly from, in BA's opinion anyway.


  • Registered Users, Registered Users 2 Posts: 545 ✭✭✭tigershould


    Anyone else noticed how BA are going head to head with EI on DUB->LHR routes. Exact same number of flights all within about 10-20 mins of each other. I find the BA ones are almost half the price of EI when booking within 10 days, about the same price when booking further out.


  • Registered Users, Registered Users 2 Posts: 545 ✭✭✭tigershould


    Oh, and BA still give you a free breakfast and drink unlike EI's "low cost" model which stripped all the freebies out


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  • Registered Users, Registered Users 2 Posts: 659 ✭✭✭Razor44


    Anyone else noticed how BA are going head to head with EI on DUB->LHR routes. Exact same number of flights all within about 10-20 mins of each other. I find the BA ones are almost half the price of EI when booking within 10 days, about the same price when booking further out.

    i had noticed a lot of BA aircraft in and out of dublin of late, now that you say it


  • Registered Users, Registered Users 2 Posts: 1,351 ✭✭✭basill


    Its all about load factors though. Also bear in mind the rules requiring operators to fly their LHR slots or else lose them.


  • Registered Users, Registered Users 2 Posts: 612 ✭✭✭Dublinflyer


    BA are feeding a lot of pax into their long haul operation from Dublin. A lot of the pax are getting connecting flights to far flung destinations. From what I hear the load factors are pretty high and they are very happy with the route since they returned.

    There is a use it or lose it rule on lhr slots, and the aircraft can't be empty ether. With BA taking delivery of their A380's shortly I am sure they will have some good lang haul fares to fill them up on the initial runs. I believe they will be doing a tour of all their global stations with an A380 over the next few months so I am sure that will coincide with a big sale!!


  • Registered Users, Registered Users 2 Posts: 5,949 ✭✭✭A Primal Nut


    I thought Ryanair promised to keep the Heathrow slots if they bought Aer Lingus (part of trying to get the deal through the competition Authorities)?


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    I thought Ryanair promised to keep the Heathrow slots if they bought Aer Lingus (part of trying to get the deal through the competition Authorities)?

    Nope, they'd sell them all to BA to "Maintain Competition" however that works... :rolleyes:
    In fact, any where where Aer Lingus competed with Ryanair, Aer Lingus would stop flying the route and it would be given to another airline, effectively shutting down the majority of EI shorthaul ops.


  • Registered Users, Registered Users 2 Posts: 1,351 ✭✭✭basill


    The "remedies package" involved amongst other things, FR hiving off some A320s and routes plus a bunch of cash and guaranteeing a profit to the UK regional airline Flybe. If they would have been succesful in he take over FR would have been precluded from competing on these routes for a period of 3 years under EU law.

    This airline has recently announced it is selling off some of its Lgw slots and it is essentially retrenching into the regional airports with job losses and pay cuts.

    You can form your own opinion about how successful this "competition" would have been in the medium to long term and what it would have meant for the consumer. History also shows the bloodbath that took place when the likes of Easyjet tried operating in the ROI.


  • Registered Users, Registered Users 2 Posts: 29,346 ✭✭✭✭homerjay2005


    basill wrote: »
    History also shows the bloodbath that took place when the likes of Easyjet tried operating in the ROI.

    was wondering today, why Easyjet does not operate in Ireland. what is the reason for this?


  • Registered Users, Registered Users 2 Posts: 24,924 ✭✭✭✭BuffyBot


    Ryanair chased them out, basically.


  • Registered Users, Registered Users 2 Posts: 29,346 ✭✭✭✭homerjay2005


    BuffyBot wrote: »
    Ryanair chased them out, basically.

    priced them out of it you mean?! or was there something else at play?


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  • Registered Users, Registered Users 2 Posts: 104 ✭✭asdfg!


    In fact, any where where Aer Lingus competed with Ryanair, Aer Lingus would stop flying the route and it would be given to another airline, effectively shutting down the majority of EI shorthaul ops.
    You do understand that in a situation where Ryanair has no vested interest in Aer Lingus' survival. They would do exactly the same by undercutting them drastically and forcing them out of most of their shorthaul routes. That's the Ryanair way.

    The only thing protecting Aer Lingus right now is the very fact the Ryanair own so much of it.

    Once the shares are gone the gloves will come off and Ryanair will have the monopoly anyway. This is a win win situation for Ryanair.

    People really shouldn't allow their distaste for Ryanair and their sepia tinted nostalgia for Aer Lingus to blur the reality of this situation.

    Most people don't choose airlines for emotional reasons or free breakfast, (which is never free btw). My wife recently went on a business trip. Outbound on Aer Lingus, the return by Ryanair. You can be sure the person organising the flights had no other considerations than costs and timing. The logo on the tail is irrelevant. Anymore than the choice of bus company home from the airport.

    Ryanair will win this one way or another and I do think WW is right.


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    priced them out of it you mean?! or was there something else at play?

    Price and frequency. Easyjet could keep charging below cost price on the route, and Ryanair get's very territorial about Ireland.

    No discount carrier other than Ryanair will fly here, just look at Wizz, they were scared off only months ago by Ryanair. Ryanair simply do not like competition and will use their size to get rid of it...


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    asdfg! wrote: »
    People really shouldn't allow their distaste for Ryanair and their sepia tinted nostalgia for Aer Lingus to blur the reality of this situation.

    It's not my distaste for Ryanair that's driving my opinion, it's that I don't want a monopoly. I don't see how anyone could want a monopoly on 90% of the traffic out of this island, it's simply absurd.

    At the moment, Aer Lingus is the only company capable of competeing with Ryanair, it's got a low cost base, and caters to a slightly different demographic. Now if another airline comes over here and starts actually competing with Ryanair and Aer Lingus and seems competent at doing it then by all means Ryanair should be allowed takeover EI, but until such point as someone can prove that they're capable of taking on Ryanair, we need the two to remain in competition.


  • Closed Accounts Posts: 8,061 ✭✭✭keith16


    asdfg! wrote: »
    The logo on the tail is irrelevant. Anymore than the choice of bus company home from the airport.

    Hmm... not so sure about that. Price isn't the be all and end all. I will always choose EI over FR. Much more pleasant and get you closer to the city you are actually flying to.


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    Well, it depends, some time's the logo is relevent, but that'll all be taken into account when buying the ticket.

    Maybe they're part of the Frequent Flier Program and building miles with EI makes more sense.

    Maybe they want to fly to a more central airport. ie: Frankfurt Main over Hahn, Paris CDG over Beauvais, Heathrow over Stanstead.
    Other times the more remote airports might actually be closer.

    They may need to fly transatlantic, they may want to fly business class. They may want to return home on a second flight that evening, they may want the earliest flight that day, they may want the cheapest option, they may want to connect to another flight.

    Plenty of things to balance out, some things that only one of the airlines will offer, so while logo isn't the defining factor, it can be a bit more than just price and times.


  • Registered Users, Registered Users 2 Posts: 104 ✭✭asdfg!


    At the moment, Aer Lingus is the only company capable of competing with Ryanair,
    They are not remotely capable of competing with Ryanair. I repeat, once Ryanair have no further business interest in Aer Lingus the gloves will come off and they will literally slap them into the ground. It doesn't happen now because MOL wants Aer Lingus. The only protection they have is the Ryanair shareholding. It's simple business. When even efficient lo-cos can't compete with Ryanair how can a slimmed down legacy carrier do it?

    keith16 wrote: »
    Hmm... not so sure about that. Price isn't the be all and end all. I will always choose EI over FR. Much more pleasant and get you closer to the city you are actually flying to.
    Price may not be everything but Ryanair success is entirely based on it's low fares not it's pleasantness. That's their business model. Cheap, efficient and on time services. The difference in my experience can be in the hundreds of Euro.

    It's a nonsense to suggest a monopoly on services would increase fares drastically. That would simply go against everything Ryanair tries to do. For example, Knock to the Canaries. Is there a competitor there? Yet the fares are reasonable. Any increase in fares opens the door to competition.

    Ryanair's whole business model is to be as lean as possible so that it can make money from fares that other cannot match and they can sustain losses on a route a lot longer than the competition if needs be.

    Aer Lingus have a big problem. they are between a rock and hard place and the Harp badge is painted on both of them.


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  • Registered Users, Registered Users 2 Posts: 6,315 ✭✭✭ballooba


    BA are feeding a lot of pax into their long haul operation from Dublin. A lot of the pax are getting connecting flights to far flung destinations. From what I hear the load factors are pretty high and they are very happy with the route since they returned.
    So, exactly what Willie Walsh is criticizing Etihad for?


  • Registered Users, Registered Users 2 Posts: 72,146 ✭✭✭✭L1011


    asdfg! wrote: »
    They are not remotely capable of competing with Ryanair. I repeat, once Ryanair have no further business interest in Aer Lingus the gloves will come off and they will literally slap them into the ground.

    And this is where your entire argument falls apart.

    For Ryanair to "slap them into the ground", they're going to have to acquire slots at slot-constrained airports across Europe, as the passengers Aer Lingus carry don't actually want to fly to the airports Ryanair serve. They're going to have to kiss and make up with airports they've fecked off from, often bad-mouthing them in the process.. They're going to have to obtain a long-haul fleet and, again, slots at slot-constrained airports across North America. They're going to have to seriously restructure their fleet planning and working practices to allow flights at the times EI passengers fly at, rather than the ones that work for FR.

    Where EI do compete with Ryanair directly they frequently come out on top. Even in cases where its prop versus jet, at that.

    You also seem to forget that they competed with Ryanair, profitably, for many years before they were IPOed and Ryanair had their stake. If Ryanair could have put them out of business, why didn't they then? Purely because they can't.

    For Ryanair to put Aer Lingus in to the ground, they need to become Aer Lingus themselves.


  • Registered Users, Registered Users 2 Posts: 612 ✭✭✭Dublinflyer


    There is another factor here that a of lot of people don't really talk about. If you think about it there is no real reason for MOL to spend the money and buy Aer lingus. If they really wanted he could just start competing on a lot of the routes and blow them away on price. I think he has a few things he wants to do. Transatlantic is high up there on his list, he knows using the RyanAir brand for this will be challenging. He wants to strip the Aer Lingus short hall routes from Dublin leaving RyanAir as the major player in the airport. This will allow him to expand current RyanAir routes, with the 200 737's he has on order. All of the above will put him a position where he can dictate his terms to the DAA and effectively control their charges by repeatably threatening to pull routes from Dublin. There is no love between them, but the new DAA chief is trying to fix this I believe.

    If he manages to pull it all off I think it would be a disaster for both the airport and the public. RyanAir can offer a great service and when things are going well they are great. You will never get the fluffy pillow service from them but that's not what they are about. But when it goes wrong or you deviate even slightly from your original plan they are a nightmare. I have been on both ends of that spectrum but will still fly with them if it suits me better than any other carrier.


  • Registered Users, Registered Users 2 Posts: 726 ✭✭✭Shamrock231


    The difference between Aer Lingus and any other airline that Ryanair chased out of Ireland, is that Aer Lingus can't leave Ireland, they tried setting up a base abroad at LGW, but that didn't work and went to show that EI was going to be confined to Ireland. With that in mind, it can't give up as easily as other airlines did and just pull out of the Irish market. It will adapt as it has been doing since Christoph Mueller took over to make sure that it can get enough out of the places where it differs with Ryanair to support the places it competes directly against them.

    EI has no option but to go head to head against Ryanair, the option to pull out of the Irish market is not open to them...


  • Registered Users, Registered Users 2 Posts: 104 ✭✭asdfg!


    You also seem to forget that they competed with Ryanair, profitably, for many years before they were IPOed and Ryanair had their stake. If Ryanair could have put them out of business, why didn't they then? Purely because they can't.
    That was before this move to take over Aer Lingus. Circumstances have changed and now Ryanair is considerably more powerful and MOL won't like having his plans foiled.

    Ryanair doesn't have to compete on every route to damage Aer Lingus. As you point out Aer Lingus cannot leave Ireland. That makes them very vulnerable. Time will tell.


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  • Registered Users, Registered Users 2 Posts: 1,351 ✭✭✭basill


    Ryanair doesn't have to compete on every route to damage Aer Lingus. As you point out Aer Lingus cannot leave Ireland. That makes them very vulnerable. Time will tell.

    How much time? You are talking gibberish. We have been competing for years with FR and as many posters have stated have come out on top. MOL could have dropped his prices to zero but he still wouldn't get 100% of the custom. You fail to understand the basic fundamentals of the two airlines demographics and customer base.


  • Registered Users, Registered Users 2 Posts: 9,413 ✭✭✭markpb


    basill wrote: »
    How much time? You are talking gibberish. We have been competing for years with FR and as many posters have stated have come out on top. MOL could have dropped his prices to zero but he still wouldn't get 100% of the custom. You fail to understand the basic fundamentals of the two airlines demographics and customer base.

    Ryanair don't need 100% to get rid of Aer Lingus, they just need to win enough customers from Aer Lingus profitable routes so that AL run out of money. I'm not saying it's likely but it's not as hard as you think. I suspect, like most carriers, that AL make most of their money from a small amount of routes. If Ryanair were able to compete on those routes, it would cause a lot of headaches.


  • Closed Accounts Posts: 1,657 ✭✭✭brandon_flowers


    markpb wrote: »
    Ryanair don't need 100% to get rid of Aer Lingus, they just need to win enough customers from Aer Lingus profitable routes so that AL run out of money. I'm not saying it's likely but it's not as hard as you think. I suspect, like most carriers, that AL make most of their money from a small amount of routes. If Ryanair were able to compete on those routes, it would cause a lot of headaches.

    I agree regarding the FR mentality but FR simply can't compete against EI on EI's most profitable routes simply because FR don't (and can't) fly to the same airports that EI have very high loads/profits on eg LHR, FRA, CDG etc

    I'm not a big fan of either airline but EI serve a very important business function for Ireland in flying these particular routes, something which Ryanair does not.


  • Registered Users, Registered Users 2 Posts: 72,146 ✭✭✭✭L1011


    markpb wrote: »
    Ryanair don't need 100% to get rid of Aer Lingus, they just need to win enough customers from Aer Lingus profitable routes so that AL run out of money. I'm not saying it's likely but it's not as hard as you think. I suspect, like most carriers, that AL make most of their money from a small amount of routes. If Ryanair were able to compete on those routes, it would cause a lot of headaches.

    Those routes being ones where FR either doesn't have the slots, the craft or the agreements to enter or compete.


  • Registered Users, Registered Users 2 Posts: 1,351 ✭✭✭basill


    Ryanair don't need 100% to get rid of Aer Lingus, they just need to win enough customers from Aer Lingus profitable routes so that AL run out of money. I'm not saying it's likely but it's not as hard as you think. I suspect, like most carriers, that AL make most of their money from a small amount of routes. If Ryanair were able to compete on those routes, it would cause a lot of headaches.

    You fail to understand the basic fundamentals between the two businesses. FR and AL operate in two completely different segments. There is only a small overlap on the bucket and spade routes. Start reading up all of the analyst statements, annual accounts, prelim announcements and investor calls that are given and you will appreciate this. Google is your friend if you really want to educate yourself. The core profitable routes of AL are ones which FR do not fly and have no ability to operate due to slot constraints and other factors precluding them.

    Here is just one example for you....The AL CEO has refocussed the business on a 55/45 ratio (and widening) of inward to outward customers. This is reflected in the huge volume of connection traffic that is flown onto the island by AL and then onwards mainly to primary airports - many of which are hubs served by our codeshare partners. Be they from the US flying in and heading off to Europe. Or Europeans wishing to avail of CBP and travelling on to ORD/NY/BOS etc. The permutations are varied and are very real and happening daily.

    AL whilst it may have a green tail and Shamrock and appear to the lay person to be completely Ireland centric have refocussed its core business and as a result its loads and volume of traffic has grown significantly as a result. In the medium term I see us being less and less reliant on the Irish consumer which as we all know are fickle at best given the current economic environment.

    FR has no through traffic. It is a point to point business. Sure you can try and buy multiple tickets with them but you carry all the risk of missing your connection whereas on an interline you do not. They also have negligible brand awareness in the US and certain parts of Europe.


  • Closed Accounts Posts: 525 ✭✭✭Suasdaguna1


    Further to Basils post, just look at the amount of transfer passengers on the early morning Atlantic EIN arrivals. On some flights nearly half the load is booked onwards.


  • Banned (with Prison Access) Posts: 276 ✭✭Rocky Bay


    Further to Basils post, just look at the amount of transfer passengers on the early morning Atlantic EIN arrivals. On some flights nearly half the load is booked onwards.

    Where does one find that information?


  • Registered Users, Registered Users 2 Posts: 9,576 ✭✭✭lord lucan


    Further to Basils post, just look at the amount of transfer passengers on the early morning Atlantic EIN arrivals. On some flights nearly half the load is booked onwards.

    It's been averaging 400 transfers off the 3 early TA arrivals the last few weeks and hit 600 for a few mornings in a row last week. Fantastic numbers it has to be said.


  • Registered Users, Registered Users 2 Posts: 232 ✭✭Bessarion


    Rocky Bay wrote: »
    Where does one find that information?

    Not sure on exact location of those numbers..... but in the EI 2012 results published in March/April the CEO stated that EI now source 60% of their passengers outside Ireland.


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