Airlines in a Crisis

 There are speculations that Ryanair will place a further 150 ExMax orders before Christmas if the plane is given the all clear to fly again by then. But in case what would this order consist of. To get the best deal they would probably have to take some of the estimated 100 white tails. These are built planes where the customer have gone or cancelled the order and most of them are of versions 8 or 9. Ryanair have ordered version 10 with 230 seats a longer fuselage, an extra emergency exit and a levered landing gear to avoid tail strikes. Not many of them are built or abandoned. Running 2 types of the airplane would be against the grain of Ryanair. However the group now consists of 3 airlines. Ryanair DAC, Buzz, Malta Air and Lauda. And the last one have earlier this year abandoned its Airbus order. There is nothing in the Low Cost rulebook saying that Lauda couldn't be an ExMax 9 only airline. Lauda air is the airline for the german speaking part of Europe. One could speculate in ...

Not issuing refunds means airlines have been living on unearned revenue and were for all sense and purpose trading while technically bust even before this crisis. The longer they are allowed to go without paying back what they haven't earned, the longer they are in reality now trading on their passengers money as well as their other creditors. All this money should technically have been in a similar to escrow account until either the airline earned it or they refunded it. These airlines have been paying out dividends and share buybacks with money that wasn't theirs. I know large amount of cash sitting in bank accounts are very tempting but when one do a lot of advanced sales is it part of being an honest business. This goes also for they who don't normally issue refunds. The unexpected will always arrive. Hoping it won't arrive during your time at the helm is not an example of good leadership. Prudent is not a negative word in finances.