Pe@rson From United Kingdom, joined Jan 2001, 18839 posts, RR: 54 Reply 2, posted (9 years 10 months 4 days 17 hours ago) and read 2317 times:
I am amazed - but very pleased - that the acquisition of the A319 will reduce U2's costs by 10%. This might mean one or more of four things:
1) it will pass this cost saving onto its consumers in the form of lower prices;
2) it will pay its shareholders a higher dividend as a reward for their investment, which would also ensure that they continued to invest instead of selling up and investing elsewhere;
3) it will retain its profit for future expansion or times of financial difficulty or both; or
4) it will increase its profit margain and continue to offer the same prices as it currently does.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
GoAround From United Kingdom, joined Jul 2003, 616 posts, RR: 0 Reply 3, posted (9 years 10 months 4 days 14 hours ago) and read 2239 times:
...or
5. They say that an 'unexpected increase in operating costs' means they have to boost their prices, when actually this is untrue, and instead Stelios runs off with all the money and spends it on pies.
Pe@rson From United Kingdom, joined Jan 2001, 18839 posts, RR: 54 Reply 4, posted (9 years 10 months 4 days 13 hours ago) and read 2208 times:
lol I don't think it'll be that, GoAround, because U2 has publicly said that the acquisition of the A319 will reduce its costs by 10%. If it then said 'ooops, in fact we have to charge you, our invaluable consumer, a surcharge because of our increased costs', then people would know they're lying.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
DoorsToManual From , joined Dec 1969, posts, RR: Reply 5, posted (9 years 10 months 4 days 13 hours ago) and read 2197 times:
It will be nice to fly an Airbus for a change!
I wonder if they are going to add any extras like PTVs or orange leather seats...then again, we might have heard something by now, if this was the case.
Orange leather seats. Can you imagine? Perhaps grey seats with orange margins would be better?
Pe@rson From United Kingdom, joined Jan 2001, 18839 posts, RR: 54 Reply 6, posted (9 years 10 months 4 days 13 hours ago) and read 2190 times:
They're having orange seats???? Gees! Don't forget your sunglasses! :p
I suspect that they won't have PTVs or inflight entertainment because it'd increase their costs perhaps beyond limits. And then there's the maintainence of it... nah, I don't think they will. After all, Easy is a 'no-frills' airline.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
777236ER From , joined Dec 1969, posts, RR: Reply 9, posted (9 years 10 months 4 days 11 hours ago) and read 2116 times:
lol I don't think it'll be that, GoAround, because U2 has publicly said that the acquisition of the A319 will reduce its costs by 10%.
Reduce WHAT costs? Operating costs? Day to day running costs will go up - engineers and crew aren't familiar with the type. Then there's the aquisition cost and cost of retraining. While there are one off costs, they're pretty bloody big and it'll take a while for easyJet to say anything like "the A319 has reduce costs".
Pe@rson From United Kingdom, joined Jan 2001, 18839 posts, RR: 54 Reply 11, posted (9 years 10 months 4 days 10 hours ago) and read 2087 times:
Quite. I'm merely quoting from its statement. I didn't say I agree or disagree with it. Naturally, the cost reduction is going to take years to take effect, but in the long-term the acquisition probably will result in this decrease.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
Artsyman From United States of America, joined Feb 2001, 4741 posts, RR: 43 Reply 12, posted (9 years 10 months 4 days 10 hours ago) and read 2089 times:
All things equal, the A319 is not 10% more efficient than the 737ng's, in fact I would be suprised if it is as efficient. However the price Easyjet paid, plus the perks thrown into the deal, make it such that Easyjet can save 10%.
Not on the actual mile for mile operating costs though
Teahan From Belgium, joined Nov 1999, 5264 posts, RR: 63 Reply 14, posted (9 years 10 months 4 days 10 hours ago) and read 2053 times:
Some information about the easyJet buses:
The first 5 will be delivered from the end of September to the end of october and will be based in Geneva (HB-JZA/B/C/D/E). The first UK regged aircraft will only be delivered in March 2004.
4 in March (G-EZEA/B/C/D)
4 in April (G-EZEE/F/G/H)
3 in May (G-EZEI/J/K)
2 in June (G-EZEL/M)
1 in July (G-EZEN)
3 more during 2004 (G-EZEO/P/Q)
The first 11 UK aircraft will operator from LGW.
Oh and there will be 156 seats.
Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
Artsyman From United States of America, joined Feb 2001, 4741 posts, RR: 43 Reply 16, posted (9 years 10 months 4 days 9 hours ago) and read 1995 times:
Yes, economies of scale, i.e. by bulk buying, is a major way to secure a reduction in the unit costs of whatever you're buying.
************
Easyjet got a lot more than the typical bulk discount from Airbus. While I don'y go along with many of the comments on here about them being virtually free, Airbus discounted these aircraft further than what could really be worthwhile for them in the short term. They also threw in free training, free spares, free virtually everything for the first x period of time. Stelios has said that he intended to buy Boeing, but Airbus discounted so deep that he had no choice.
777236ER From , joined Dec 1969, posts, RR: Reply 17, posted (9 years 10 months 4 days 9 hours ago) and read 1997 times:
Stelios has said that he intended to buy Boeing, but Airbus discounted so deep that he had no choice.
That's the point, Stelios (rightly or wrongly) being greedy sold enough shares to lose control of the business. His wish to buy Boeing counted for nought when shareholders were wooed by tiny initial investment in the A319.
Reducing costs doesn't improve service. easyJet, and ALL the low cost carriers have worked because they have one aircraft type. easyJet, despite the lower price, is introducing a new type! It will run all three fleets (737 classic, 737NG and A319) at the same time, and while the 737 classics may be retired, there is no way the 737NGs are going.
That leaves easyJet with two pools of pilots, engineers trained on two aircraft, two sets of spares, two engine types, two completly different aircraft. Had Stelios had ultimate control of the airline, I think we would have been a Boeing order.
Artsyman From United States of America, joined Feb 2001, 4741 posts, RR: 43 Reply 18, posted (9 years 10 months 4 days 9 hours ago) and read 1969 times:
*That leaves easyJet with two pools of pilots ** paid for by airbus
* Engineers trained on two aircraft ** paid for by airbus
*Two sets of spares, two engine types ** paid for by airbus
Airbus is picking up all the costs that having a mixed fleet suffers, this is the point many have been making
GoAround From United Kingdom, joined Jul 2003, 616 posts, RR: 0 Reply 19, posted (9 years 10 months 4 days 9 hours ago) and read 2003 times:
@ 777236ER
AirTran: B717 and B737
jetBlue: A320 and ERJ190
Buzz (until recently): BAe 146 and B737
Frontier: A318 and A319, as well as regional operation with RJs
Air Berlin: B737 and BAe 146
There are more, too... flyBe just has too many to mention!
Vfw614 From Germany, joined Dec 2001, 3593 posts, RR: 5 Reply 20, posted (9 years 10 months 4 days 8 hours ago) and read 1908 times:
Yeah, and in the first place: Southwest.
737-200, 737-500 and 737-700. Three generations of Boeing 737s. Can't see much commonality between a -200 and a -700.
Ryanair: 737-200, 737-300 and 737-800
IMHO, once you have achieved a certain fleet size, you will not suffer that much from different types that you are stuck with one type for the rest of your life with one type.
777236ER From , joined Dec 1969, posts, RR: Reply 22, posted (9 years 10 months 4 days 7 hours ago) and read 1873 times:
AirTran: B717 and B737
jetBlue: A320 and ERJ190
Buzz (until recently): BAe 146 and B737
Frontier: A318 and A319, as well as regional operation with RJs
Air Berlin: B737 and BAe 146
AirTran and jetBlue haven't started operations with two aircraft yet.
Buzz was taken over.
Frontier hasn't started meaningful operations with the A318 yet, and it's commonality to the A319 is significant.
Air Berlin's BAe146 operations are hardly gigantic.
So far (happy?) successful low-cost carriers used one type.
Teahan From Belgium, joined Nov 1999, 5264 posts, RR: 63 Reply 24, posted (9 years 10 months 4 days 7 hours ago) and read 1822 times:
Bill,
I really am not sure about the 4 FAs although the 156 seats has been mentioned in multiple places. BTW there will be only 2 toilets instead of the 3 you usually find on B737s/A319s.
Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
25 Rlwynn: I think Easyjet will see thier mistake in short order.
26 DoorsToManual: Buzz was taken over. And they were good at losing lots of money.
27 GoAround: I was merely pointing out these airlines' mixed fleets! GoAround
28 DoorsToManual: yes, and I was merely pointing out that buzz were an example of a failed LCC (in the sense that they failed to make money) I'm not having a dig at any
29 GoAround: Good good, glad that's settled Lol, why are we discussing this again?! Time will tell... GoAround
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Naturally, the cost reduction is going to take years to take effect, but in the long-term the acquisition probably will result in this decrease.
From United States of America, joined Feb 2001, 4741 posts, 
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