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Impending & Actual Business Failures Due to Covid 19
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- Lemon Quarter
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Re: Impending & Actual Business Failures Due to Covid 19
When I last looked at their numbers, IAG's cash position was surprisingly healthy but Virgin Atlantic was in Big Issue territory.
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- The full Lemon
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Re: Impending & Actual Business Failures Due to Covid 19
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.
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- Lemon Slice
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Re: Impending & Actual Business Failures Due to Covid 19
True. Singapore Airlines "SQ"dspp wrote:SA could fly into all the Asian and long haul destinations on an equal basis vs local flag carriers.
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:Any airline outside of EU is disadvantaged in accessing the internal EU market.
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:This is why SA has no route network within EU, USA, China.
Principle reasons mentioned.dspp wrote:The historical situation that led to the emergence of a LHR hub and profitable BA was running towards difficulties.
Correct.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.
If airlines expect public subsidy from National Governments it's surely only fair they operate in the National NOT European Community interest?dspp wrote:There is trouble ahead, because of Brexit, which will be accelerated by CV-19. regards, dspp
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- Lemon Half
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Re: Impending & Actual Business Failures Due to Covid 19
YeeWo wrote:True. Singapore Airlines "SQ"dspp wrote:SA could fly into all the Asian and long haul destinations on an equal basis vs local flag carriers.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:Any airline outside of EU is disadvantaged in accessing the internal EU market.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:This is why SA has no route network within EU, USA, China.Principle reasons mentioned.dspp wrote:The historical situation that led to the emergence of a LHR hub and profitable BA was running towards difficulties.Correct.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.If airlines expect public subsidy from National Governments it's surely only fair they operate in the National NOT European Community interest?dspp wrote:There is trouble ahead, because of Brexit, which will be accelerated by CV-19. regards, dspp
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
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- Lemon Half
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Re: Impending & Actual Business Failures Due to Covid 19
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
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
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.
- 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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