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richardw
Posts: 3168
Joined: Tue May 08, 2001 3:17 am

RE: Easy Monarch?

Mon Apr 18, 2016 7:21 pm

FR already dominates in the LONdon market from STN, increasing services at LTN and LGW may just mean more competition with U2, there may be other opportunities for growth with less competition.
 
Boeing74741R
Posts: 1470
Joined: Tue Apr 17, 2007 5:44 am

RE: Easy Monarch?

Mon Apr 18, 2016 9:01 pm

Quoting richardw (Reply 47):
Jet2 is an EMA and north of airline, it's brand recognition around BHX and south of is poor, Monarch is much stronger here.

Monarch has some very loyal customers from LTN and LGW flying to Spain and its Islands, in the short term Jet2 would be foolish to drop the Monarch brand.

GB Airways had a lot of loyal customers prior to the easyJet takeover. I'm not sure how much of that was down to it being a BA franchise carrier, but did easyJet lose a lot of ex-GB Airways customers afterwards? I suspect they didn't, especially considering that BA didn't initially open their own rival services out of LGW across all routes and from MAN the only alternatives at the time were Monarch, Jet2 or the charter carriers (Ryanair's base at MAN wasn't as big then as it was now and this was before the 2009 fallout), plus there were more charter carriers at the time as you still had XL and First Choice, plus Monarch's scheduled routes didn't extend much beyond the Iberian Peninsula/Balearic's/Canaries. Finally from MAN it should be pointed out that at the time it gave easyJet an immediate presence overnight from a starting point of zero routes.

If I'm brutally honest, besides the Vantage Club for frequent flyers, there's very little to differentiate ZB from the competition these days and I suspect a lot of their market is price-conscious. From experience flying MAN-FAO ZB are generally not the cheapest option (or they don't seem to be on the days I want to fly on) compared to Jet2 or Ryanair, or easyJet down the road in LPL. Don't know what it's like for other routes.

As for Jet2, if they can build up brand recognition and loyal following in the East Midlands, northern England, Scotland and Northern Ireland then I'm sure they can do the same in the south, despite the competition.
 
richardw
Posts: 3168
Joined: Tue May 08, 2001 3:17 am

RE: Easy Monarch?

Mon Apr 18, 2016 9:26 pm

GB Airways loyal customers may have tried easyJet, but they've probably drifted back to BA on routes such as LGW-ALC.
easyJet operates fewer LGW-ALC flights than the sum of their old schedule and GT's. Did U2 pay too much for GT, probably.

LS replaced WW at EMA after BA decided to close WW down, there was a gap in the market to be filled.
The situation with Monarch in the short term is different. Jet2 could establish a brand in the south, but it may take longer after a slow Monarch phase out.

[Edited 2016-04-18 14:34:13]
 
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eurowings
Posts: 574
Joined: Sat Sep 10, 2011 10:40 pm

RE: Easy Monarch?

Mon Apr 18, 2016 10:37 pm

Quoting richardw (Reply 50):
FR already dominates in the LONdon market from STN, increasing services at LTN and LGW may just mean more competition with U2, there may be other opportunities for growth with less competition.

I don't think FR has been shy in competing with U2 recently though, their recent activities on domestic routes from STN, LTN-CPH and LGW-BFS appear to be aimed directly at eroding U2's strong position in the London market. You never know, ZB could be just the ticket for peak-time slots at LGW and LTN for all the usual routes. FR jumped at the opportunity to acquire the EI Belfast remedy slots at LGW, although they were free of course  . Unlikely, but wouldn't rule them out completely.

Quoting richardw (Reply 52):

GB Airways loyal customers may have tried easyJet, but they've probably drifted back to BA on routes such as LGW-ALC.
easyJet operates fewer LGW-ALC flights than the sum of their old schedule and GT's. Did U2 pay too much for GT, probably.

LGW passengers have the best range of options for sure, and the airport can sustain a more 'premium' in form of BA on bucket and spade routes (although with BA's new fare regime and random seating etc I don't see the added value above the refreshments but that's for another thread!). If I remember correctly, GT had actually gone "low cost" at MAN in terms of onboard service before the EZY takeover?

Quoting richardw (Reply 52):
LS replaced WW at EMA after BA decided to close WW down, there was a gap in the market to be filled.
The situation with Monarch in the short term is different. Jet2 could establish a brand in the south, but it may take longer after a slow Monarch phase out.

Both Jet2 and Monarch moved into to EMA after Bmibaby was closed down, although FR is actually the largest carrier at EMA now. I was half expecting Jet2 to set up in BHX, but they never came - the void was filled by Monarch growth, FR and BE running E175s to PMI and ALC (entirely unsuccessfully of course!). More recently it's been DY and VY growing at BHX.
"Freddie Laker may be at peace with his Maker, but he is persona non grata with IATA."- HRH Duke of Edinburgh
 
Boeing74741R
Posts: 1470
Joined: Tue Apr 17, 2007 5:44 am

RE: Easy Monarch?

Tue Apr 19, 2016 5:00 pm

Quoting richardw (Reply 52):
LS replaced WW at EMA after BA decided to close WW down, there was a gap in the market to be filled.

Slight correction. IAG shut down bmibaby after no buyer was found for it. BA didn't close anything down of BMI as IAG merged it into BA. The only part of the old BMI operation still going is BMI Regional after it was sold in 2012.

Quoting eurowings (Reply 53):
I don't think FR has been shy in competing with U2 recently though, their recent activities on domestic routes from STN, LTN-CPH and LGW-BFS appear to be aimed directly at eroding U2's strong position in the London market.

They've also been competing with easyJet on the holiday routes out of MAN and LPL to various Spanish and Portuguese destinations.

Quoting eurowings (Reply 53):
If I remember correctly, GT had actually gone "low cost" at MAN in terms of onboard service before the EZY takeover?

That's my recollection. From around mid-2006 they adopted a 'buy-on-board' model like the one being used by BA Connect at the time for their MAN routes.
 
f4f3a
Posts: 623
Joined: Thu Jul 29, 2004 4:07 am

RE: Easy Monarch?

Tue Apr 19, 2016 5:01 pm

I see that stelios has said he would oppose any takeover stated on Reuters . He claims they are bad value for shareholders. I wonder whether the tempestuous relationship between management at easyjet and stelios will ever come to a head.
 
richardw
Posts: 3168
Joined: Tue May 08, 2001 3:17 am

RE: Easy Monarch?

Tue Apr 19, 2016 6:32 pm

Quoting Boeing74741R (Reply 54):
WW became part of BA, not IAG. BA had liability for all outstanding WW EU261:2004 claims not IAG.
IAG is just a holding company.

[Edited 2016-04-19 11:33:15]

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