Thursday 28 August 2008

Zoom away


So the airline Zoom has has today with a number of passengers left stranded abroad. Not flying with a travel agent has become dangerous on these smaller airlines as more and more go under. We have already see Maxjet and Silverjet go this year, now Zoom.

Even some of the larger national carriers like Al Italia and Aer Lingus are on very shaky financial ground.

This has all been predicted to happen for some time, but there is clearly a structural over-capacity in the market, even Ryan Air is cutting flights.

On the flip side, more established airlines like Virgin Atlantic are sailing along nicely. I know who I would fly with...

Happy Landings

14 comments:

Anonymous said...

"Al Italia and Aer Lingus are on very shaky financial ground": is this some sort of Vesuvius and bogs joke?

Old BE said...

I flew to NY with Zoom in May/June. You could tell they were in dire straits, there was something in the atmosphere. On my way back we were delayed terribly because the plane that turned up at JFK was smaller than the one they had been expecting. Those who had paid for "premium" sat in the crappy seats with the rest of us.

I reckon they finally gave up when they saw my "questionnaire" which read "I will never fly Zoom again". Now I definitely won't!

Nick Drew said...

I thought there was something jinxy about you, BE ...

(email follows)

Old BE said...

In fact there is something about me and lower-tier airlines. I went on Air Phuket the week before the fuel leak which sealed their fate...

Letters From A Tory said...

Al Italia can just have a chat with the Italian government and flout EU rules with a healthy government subsidy, so I can't see them going under.

Unsworth said...

@ BE

Any chance of you publishing your forthcoming travel plans?

Just a precaution, you understand, nothing personal.

Mark Wadsworth said...

Y'see, that's the upside of The State auctioning off landing slots at regular intervals.

In the short term, the value/auction price of the slots would fall when e.g. fuel costs go up, which cushions the blow a bit.

If the auction price stays low for a long time such that the proceeds do not cover the external costs, we'll stop expanding airports, and hopefully the US gummint, the EU will stop subsidising aircraft manufacturers and airports, and various countries will stop subsidising their 'national' airlines.

CityUnslicker said...

Dearime - I try, I am just not always that good at the end of a long day...

BE - Remind me never to fly with you anywhere....

LFAT - Even the Italian government are struggling with Al Italia. I feel confident in predicting it won't make it through this recession.

MW - A very good idea, nto sure how you decide who really owns these things. First you would have to confiscate them from the airlines, which is all a bit communist for me...

Old BE said...

I am not planning any more flights this year. I have heard good things about Air Sri Lanka though...!

Perhaps landing slots could have a feature akin to other monopolies that I can think of and have a renewal fee associated with them?

Mark Wadsworth said...

The airlines got them free in the first place, so tough, is my first thought.

However, the ideal time to introduce the system is at a time when the value of the slots is negligible or nil, i.e. now. If some of the future proceeds are used to compensate those airlines who have paid for them on the grey market, well so be it. You can't make an omelette etc.

CityUnslicker said...

slots at heathrow are over £1 million on the grey market. I think BA will be talking at length to slaughters and may if this idea were to go anywhere.

the gov should buy them and then auction them back i guess this might be revenue neutral. How can BA keep T5 though.

this one is good in principle but really hard in practice.

patently said...

Perhaps landing slots could have a feature akin to other monopolies that I can think of and have a renewal fee associated with them?

Cool. Continuing the inspiration, perhaps the renewal fee could rise a bit each year? Might encourage a some turnover to let new people in and keep the old ones on their toes.

We'd need a cadre of highly educated professionals to draft the applications for new landing slots, though. Then we could make them all pass a ridiculously difficult and random exam so that there were never quite enough of them and they could charge eyewatering fees to their clients.

Or am I taking the parallel too far with that one?

Jeremy Jacobs said...

I feel an airline joke coming on.

What's TWA stand for?

Try Walking Across


El-Al

Every landing always late



SABENA



Such a bloody experience never again (prophetic)

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