More grim news out today about the World's airlines. It is not just BA heading for big losses, but Cathay Pacific, Delta and a host of others across the world. Although Lufthansa have managed small profit.In related new, Easyjet has complained about the EU's possible decision to relax the 'use it or lose it' approach to airline slots. I am on easyjet's side, if airlines can't use their slots economically they should give it up to those that can. This is pure flag carrier protectionism once again.
What is perhaps most surprising to me is just how badly airlines are doing considering the huge falls in kerosene seen in the past few months. Many airlines have hedged positions (not Lufthansa, unsurprisingly) too far into the future and are not feeling the full benefits of the drop, but still, to have nearly 1/3rd wiped off your cost base and still lose money says a lot for sheer scale of the decline in traffic.
At least the global warming crowd will be happy as less planes fill the sky for the next few years.
7 comments:
Why are the slots not organised as any other commodity is? Airlines holding onto slots which they are not using sounds rather like abusing a dominant position. Take them to the cleaners.
I can't feel too sorry for airlines. There are too many and a lot of them treat their customers poorly. A bit more cut-throat competition would be A Good Thing.
What is kerosene?
I think a boost to the airlines running their business more designed toward satisfying the customers once again would be just bloody lovely!
BE - aeroplane fuel.
LM - Agreed,there is a wide supply of airlines though so we ought to be able to take our pick. i think the current economic crisis may limit the numbers again for a while.
kerosene = jetfuel - it's quite similar to the paraffin on which we used to run tractors when I was a lad. Different from "aviation gasoline" which is the petrol you use in piston-engined planes.
With any luck the fall in air travel might be enough to allow us to shut Heathrow and turn it into a sports centre as part of the 2012legacy.
From the pic I thought this was going to be a post about alternatives to Ryanairs 'pay as you go to the lav ' scheme.
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