Airlines in a Crisis

In Norway we have several examples on this. Norwegian was/is hq'd at Fornebyu that haven't been an airport for over 20 years. Flyr was hq'd in the overexpensive Oslo city center. And Norse hq'd in Arendal, a town without an airport and even further from Oslo airport than Oslo itself. The train connections from hq to airport might be frequent and only take halve to an hour but its not the same as a 10 minute walk to oversee where your real operations happens. The place where your customers experience your service and most of your critical costs are spent. But also the costs most easily squeezable. Closenes let you reduce the costs before they occur rather than just financially overseeing the bills in accounts after they have happened. That makes a difference when it comes to reducing costs through strict control.  And low costs are the most important for being able to underprise your competitors. Something all the beforementioned airlines tried and tries because they see...

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 ...

Have Ryanair's O'Leary lost the ability to ajust. He is complaining left right and center about why not everything is like before. Why should they have to practise distancing, why is there quarantines and why do the airline have to do any changes instead of somebody else like the airports taking care of all the bothersome stuff. Did he completely forget his schoolyear teachings about price unelastic demand. We see every day reports about people who would be willing to pay a bit more if there just was flights. They who want to and/or are desperate to travel will pay what it costs. But many will not travel for any price because they are scared. Either scared because they don't trust airlines to adapt to the new distancing safety standards or hardline practice the masks thing. Or scared they will be on a plane full of ignoramas who not only will not practice it there but do the same everywhere else and therefor be pestilence carriers. Better sit back and wait for better time...