Airlines in a Crisis

The rescue plan leeks seem to be pretty consistant on that the future of Norwegian will contain shorthaul within  and to/from the Scandinavian market. Question is what about 787 LH. Norwegian seem to historically have used a small profit margin created from its original and core business of the domestic and Scandinavian plus sun hollidays for same market, to subsidise an expansion into transcontinental including transatlantic flights. Without the latter beeing documented as anything else than a loss making business. Resulting in the whole company using a lot of red ink for its accounts. There is a possibility for LH low fares business but one have to have the discipline for low cost operations that must go with it. The 787 proved a problematic choice for the company and maybe now one of the never narrowbody planes with la larger range would be a better option. Partially because the Scandinavian to sample US market is very small even from the capital cities, and most routes gain by ...

The Ryanair costbase have in the later years been steadily creeping upwards as they have added frills and abandoned smaller airports for more mainstream ones only sometimes closer to city centers. Yes they have charged extra for the extras but it have let an airline like Wizz creep up under its radar and end up with a lower costs per passenger, according to Ryanair's own presentations. Is a perceived segment of potential customers, the business traveller, worth going after so much you'd give up the single most important competitive advantage you have had within the industry for years. The one that let you gain market share and dominance by your most important marketing tool, lower prices than everybody else. Wizz abandoned Frankfurt when the initial discounted deal on airport fees ran out. Ryanair have moved their flights from nearby Hahn and have stayed put even when costs went up. Maybe the need for deeply discounted prices to entice people back into the air will require ...

Maybe their towels was left on a sunbed somewhere.  Lufthansa have been negotiating with the German government for a multi billion euro package. Howeber german pride within the company have topped them from actuallya ccepting the money offered. For the first they don't want to give up slots iin the german airports they hold a stranglehold on. For the second they don't want civil cervants or even worse politicians keeping an eye on how they run things, or god forbid how large a new Mercedes top managmenet changes to every year. Pehaps it shouldn't have been so surprising, at least for they who knew luftie couldn't make money on transporting tourists. Well according to some insider commentators that is. But are instead depending on they who don't pay for the ticket themselves, and hopefully are not looking at the costs. That in a downturn is a castle built on sand.  Letting foreign Low Costs in and showing the natives how little they really could get away with pay...