26 replies to this topic

[Speed Bird]

Be happy, Hake, it's a good thing!

[Hake.]

Be happy, Hake, it's a good thing!

If there's nothing wrong don't fix it. Heartless corporations is what the airline industry wants to become, so I for one shall not pretend like everything is fine and dandy when airports and people are crippled by loss of jobs, tourists and connection in the area.

[Speed Bird]

If there's nothing wrong don't fix it. Heartless corporations is what the airline industry wants to become, so I for one shall not pretend like everything is fine and dandy when airports and people are crippled by loss of jobs, tourists and connection in the area.

 

Well I'm afraid heartless corporations make the world go round

 

The airline industry is as cut throat as it gets, trust me on that. In numbers there is strength, and EI will be a far stronger airline as part of IAG. It may be chugging along nicely now and I don't doubt it will continue to do so for the next few years, but this industry is incredibly cyclical. There will be a time down the line when EI finds themselves in a tricky situation, as will every airline, and I guarantee they'll be far better placed to weather the storm under IAG's belt than if they were independent, thus saving jobs and ensuring the continuity of what is to all intents and purposes Ireland's national carrier. 

[Luft]

It sounds like we're delivering eulogies

 

"...EI has gone on to a better place now, let her rest..."

[Hake.]

Ireland's national carrier? Not any more. That's Aer Arann Islands job now I'm afraid (The only fully Irish owned and operating under its own name airline). And I don't see trouble ahead, assuming it happens - DUB connection hub is at an all time high and TATL flight loads are up 20% on last year. And not all airlines are like this. Look at CityJet, VLM, Aer Arann (RIP) or Blue Islands. Not designed for profit and owned by ruthless CEOs, designed around a vision of serving their customers. Then we can look at Finnair or Icelandair, independent and profitable (AFAIK) airlines. As a disappointed and angry Irish man, I may as well look elsewhere for tickets.

[Speed Bird]

I cannot stress enough that ALL airlines will experience a period of time where they find themselves in a spot of bother. Airlines are incredibly exposed to internal factors, and this alone makes them extremely vulnerable financially. As much as you seem to despise this fact, airlines are businesses. They are out there to make money, albeit not overly successfully in the case of many. I commend EI for the current performance, they really are doing an excellent job. But again, as demonstrated time over, this industry is cyclical. And a small, niche airline like EI is more exposed than others to these external factors that this industry experiences. 

 

As you mentioned, FI is doing quite nicely. It's a profitable, niche carrier that does what it does very well, and is indeed expanding at a relatively constant rate. AY on the other hand, whilst also filling a niche, aren't doing quite as well, struggling really to muster any form of consistency in terms of profits. 

[Hake.]

My point is that airlines used to serve s thing called passengers. Now they serve themselves. EI is becoming a victim of this, ironically started off by Willy Walsh.