vfw614 From Germany, joined Dec 2001, 4296 posts, RR: 5 Posted (5 years 5 months 3 weeks 5 days 4 hours ago) and read 21499 times:
In case that the volcano disaster will disrupt normal airline operations for more than 2 or 3 days, do you think that some European airlines will go under as a result? Some have been on the brink of collapse in the past months due to the economic crisis - do you think that a prolonged disruption of flight might push them over the edge? Remember the situation after 9/11, when quite a few airlines collapsed as the situation then was the last straw for them. Any thoughts about likely candidates?
LJ From Netherlands, joined Nov 1999, 4683 posts, RR: 0
Reply 1, posted (5 years 5 months 3 weeks 5 days 4 hours ago) and read 21269 times:
KLM estimated to loose EUR 5mio to EUR 10mio a day. Thus if the problems are solved quickly than it shouldn't have a large effect. However, if you are already on the verge of collapsing, then this may push you over the edge. However,
EXTspotter From United Kingdom, joined May 2007, 992 posts, RR: 1
Reply 3, posted (5 years 5 months 3 weeks 5 days 3 hours ago) and read 20842 times:
But the effect is mainly on northern europe. I would say maybe some of the "weaker" UK airlines, maybe LS or WW (I don't know enough about their financials, however after years ofreading these forums, those are names that seem to keep popping up on weak financial performance). Alex
AF BE BY FR MV PD SZ U2 VZ DHC6, 8-3/4Q, 732/8, 763ER, A319, A380
Caaardiff From United Kingdom, joined Jul 2006, 198 posts, RR: 0
Reply 4, posted (5 years 5 months 3 weeks 5 days 1 hour ago) and read 20460 times:
I was under the impression LS were actually doing quite well lately.
WW on the other hand have been under performing lately, and dont seem to have any direction, chopping and changing routes constantly with no real plans for healthy growth.
I think if anything were to happen to any UK airline, it would be some of the very small carriers (Manx2/Air Southwest/Scotairways etc) however these tend to have good backing. But with BA's current financial situation, and being of a similar size to KL, surely a loss of 5-10 Mil Euros a day cant do them any good!
A question raised by some at CWL recently is, how much extra capacity will airlines add once the Volcano issue is over? Would it be logistically possible to add extra flights, and in such a short timescale, would they sell, or will people just get a refund and find alternative transport (for domestics) and scrap travel plans for further afield other than those absolutely neccessary.
Someone with the right setup may benefit quite well. For example WW currently do not fly their aircraft (at CWL at least) to its full potential as it would normally when reaching the summer season. The availability of aircraft could provide oppurtunity to provide a decent rescue program for its stranded passengers, and extra availability to those who cannot, or dont want to rebook with their original carriers.
shuggie From United Kingdom, joined Apr 2007, 120 posts, RR: 0
Reply 7, posted (5 years 5 months 3 weeks 5 days 1 hour ago) and read 20238 times:
Quoting EXTspotter (Reply 3): I would say maybe some of the "weaker" UK airlines, maybe LS or WW (I don't know enough about their financials
It's my understanding that WW is 100% owned by BD and obviusly they in turn are owned by LH so I wouldn't have thought that they'd collapse because of this. That's not to say they won't dissapear at some point...
Would the EU allow a government to loan cash to save it because of extra-ordinary circumstances?
The EU cares about making sure that one country doesn't support it's countries to the detriment of other countries. So I bet they would be fine with it as long as there are guidelines that make sure the countries support their airlines equally somehow.
WAC From United States of America, joined Nov 2008, 275 posts, RR: 0
Reply 11, posted (5 years 5 months 3 weeks 5 days 1 hour ago) and read 19910 times:
I could see BE needing a cash boost from BA. Just have a look at most of the airports with aircraft through out the UK and BE aircraft seem to dominate being on the ground. From SOU to INV from ABZ-LGW. Also the fact most passengers can get to their destination by ground transport means that those that were supposed to fly will use the alternatives rather than postpone their travel and ask for a refund. I don't think they will go under but they will need a substantial cash injection from BA.
LondonCity From United Kingdom, joined Nov 2008, 1613 posts, RR: 0
Reply 12, posted (5 years 5 months 3 weeks 5 days ago) and read 19338 times:
Passenger airlines are mentioned above. But what about cargo airlines ? A report in today's Daily Telegraph says that cargo carriers of three countries which export produce from Kenya to Europe have all been grounded.
Apparently in normal times Kenya would export GBP1.3 million worth of flowers each day to Europe: