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Impending & Actual Business Failures Due to Covid 19

stewamax
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Re: Impending & Actual Business Failures Due to Covid 19

#295148

Postby stewamax » March 28th, 2020, 4:16 pm

When I last looked at their numbers, IAG's cash position was surprisingly healthy but Virgin Atlantic was in Big Issue territory.

UncleEbenezer
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Re: Impending & Actual Business Failures Due to Covid 19

#295161

Postby UncleEbenezer » March 28th, 2020, 5:16 pm

AsleepInYorkshire wrote:I am convinced that there are going to be a number of substantial business failures.


As always. This will be a shakeout, and a scapegoat for other things.

But bear in mind, every business failure leaves a niche for something new, perhaps innovative and better. Unless the failed business wasn't meeting a need in the first place.

YeeWo
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Re: Impending & Actual Business Failures Due to Covid 19

#295349

Postby YeeWo » March 29th, 2020, 12:15 pm

dspp wrote:SA could fly into all the Asian and long haul destinations on an equal basis vs local flag carriers.
True. Singapore Airlines "SQ"
dspp wrote:Any airline outside of EU is disadvantaged in accessing the internal EU market.
British Airways attempts to build access to the EU internal market all failed. Deutsche BA, Touraine Air Transport (TAT) in France, "Go" were all either closed or sold. The merits of the EU market have principally been exploited by Ryanair, Easyjet etc. LCCs have no interlining, no through checked baggage, limited catering and only have fleets that operate short to medium-haul. British Airways attempts to build a viable network as a self standing entity were undermined by British Midland and Virgin Atlantic being given precious long-haul traffic rights (while taking investment from foreign entities) plus the refusal to expand LHR for British Airways to build scale. Walsh's diagnosis of the problem works but has gutted Terms & Conditions for Employees and created so many sub-economic fares that one must question the rationale in both social and environmental terms.
dspp wrote:This is why SA has no route network within EU, USA, China.
Singapore Airlines is a member of the Star Alliance which includes Lufthansa. Lufthansa is clearly German and being a full service carrier it hubs principally via Frankfurt but again doesn't fly internally within the EU.
dspp wrote:The historical situation that led to the emergence of a LHR hub and profitable BA was running towards difficulties.
Principle reasons mentioned.
dspp wrote:Seeing that Walsh positioned for the future with IAG. That IAG strategy has been gutted by Brexit, but it does not make Walsh's diagnosis of the problem and the rationale of the solution incorrect.
Correct.
dspp wrote:There is trouble ahead, because of Brexit, which will be accelerated by CV-19. regards, dspp
If airlines expect public subsidy from National Governments it's surely only fair they operate in the National NOT European Community interest?

dspp
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Re: Impending & Actual Business Failures Due to Covid 19

#295389

Postby dspp » March 29th, 2020, 1:56 pm

YeeWo wrote:
dspp wrote:SA could fly into all the Asian and long haul destinations on an equal basis vs local flag carriers.
True. Singapore Airlines "SQ"
dspp wrote:Any airline outside of EU is disadvantaged in accessing the internal EU market.
British Airways attempts to build access to the EU internal market all failed. Deutsche BA, Touraine Air Transport (TAT) in France, "Go" were all either closed or sold. The merits of the EU market have principally been exploited by Ryanair, Easyjet etc. LCCs have no interlining, no through checked baggage, limited catering and only have fleets that operate short to medium-haul. British Airways attempts to build a viable network as a self standing entity were undermined by British Midland and Virgin Atlantic being given precious long-haul traffic rights (while taking investment from foreign entities) plus the refusal to expand LHR for British Airways to build scale. Walsh's diagnosis of the problem works but has gutted Terms & Conditions for Employees and created so many sub-economic fares that one must question the rationale in both social and environmental terms.
dspp wrote:This is why SA has no route network within EU, USA, China.
Singapore Airlines is a member of the Star Alliance which includes Lufthansa. Lufthansa is clearly German and being a full service carrier it hubs principally via Frankfurt but again doesn't fly internally within the EU.
dspp wrote:The historical situation that led to the emergence of a LHR hub and profitable BA was running towards difficulties.
Principle reasons mentioned.
dspp wrote:Seeing that Walsh positioned for the future with IAG. That IAG strategy has been gutted by Brexit, but it does not make Walsh's diagnosis of the problem and the rationale of the solution incorrect.
Correct.
dspp wrote:There is trouble ahead, because of Brexit, which will be accelerated by CV-19. regards, dspp
If airlines expect public subsidy from National Governments it's surely only fair they operate in the National NOT European Community interest?


1. Clearly you have never flown on IAG's ongoing in-EU loco Vueling.
2. Clearly you have never flown on Lufthansa's ongoing in-EU loco Eurowings.

I'm not disagreeing with all you have written as some of it is correct. But BA outside of IAG would be imho toast. Whether fully charred or only highly singed remains to be seen. Whether Walsh can manoeuvre IAG through Brexit and still retain BA within IAG also remains to be seen.

regards, dspp

AsleepInYorkshire
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Re: Impending & Actual Business Failures Due to Covid 19

#295584

Postby AsleepInYorkshire » March 30th, 2020, 1:01 am

30th March 2020
Regional connectivity at risk, says airline boss

The boss of the UK's largest regional airline [Loganair] has said his firm plans to ask for government help to get through the coronavirus pandemic.

AiYn'U

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Re: Impending & Actual Business Failures Due to Covid 19

#304571

Postby mjbdreamer » April 30th, 2020, 5:43 pm

As there was a bit of discussion on Virgin Atlantic and BA on here I thought I'd add a couple of snippets.

- Virgin Australia into administration - https://www.bbc.co.uk/news/world-australia-52363428

- Lufthansa burning through €1m per hour I thought was pretty catastrophic https://www.thelocal.de/20200409/german ... n-per-hour

- And then I read American Airlines is haemorrhaging $70m per day ! https://www.chicagotribune.com/coronavi ... story.html


There is going to be an interesting landscape (airscape?) when this is all over.


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