Airlines in a Crisis

Most startups place their HQ at or near their main airport to keep a close eye on operations. It can also give combined advantages. Sample the DUB based flight crews used to meet up at the Ryanair hq and transport in a van directly to the planes, needing no extra office space within the terminal. Ryanair management used to walk or drive up to the airport complex frequently and many of their top management where known to be very hands on. Sample during the baggage handler strike of 98 they where all handling suitcases. In fact every male employee in the White House (nick name for then Ryanair HQ) was. And most of hq staff had airport airside passes hither and tither. Even after the move to larger premises the DUB airport main terminal is less than a 5 minute drive away. Airlines like Norwegian on the other hand seem to have missed that the Oslo airport have moved from Fornebu to Gardermoen at the opposit end of the city. Not only that but they are paying rent at what is rumoured to g...

Let's take som quick math to Ryanair's O'Leary's claims that middle seat free is unsustainable. According to the Ryanair results presentation their average fare is 37 euro. Add 50% and it becomes 55.5 Still below Easyjet's current of 59 according to the same presentation. Will an extra 18 euro 50 cents really stop people from flying if it means they could be safer from viruses. It seems more of a pshycological problem for top brass rather than for any real economic reason, that airlines think they should be excempt from the physical distancing that every other business have to put up with. Some will always persist on squezing the last of capacity out of both materiel and staff, even at the cost of suffering, for others. The only thing a temporry 50% rise in ticket prices put an end to is O'Leary's plans about releasing a rush of Low Fares to get further market share from competitors, as long as they don't do just the same with borrowed money. I am su...

Norwegian worked up a good brand in Low Fares transatlantic and to parts of Asia. Now when they are retracting to the Norway and Scandinavia market, plus probably something to bring those customers to some sun like Spain, Italy, France and similar, it leaves a market, new fleet and crews ready for easy prickings for the right operator. London Gatwick could be losing some of its main operators on the transatlantic market with Virgin shrinking and BA retrenching to Heathrow. So there is an opportunity for a partial ready made market to be exploited when traffic returns. And chances of a head start for they willing to dip a toe in the water, with the potential of real returns. Many have tried and failed in Europe-US low fares. Few had such a chance that now exists to make it also a true Low Cost. Utilizing the worked up brand of Norwegian could give an instant ready supply of potential passengers. Combine that with a great opportunity for exceptional deals on leases, low price on fuel ...