Daily Express article - airlines at 'risk'

How about this for an article designed to scare everyone!

[url][/url]http://www.express.co.uk/posts/view/54441/Ryanair-triggers-cheap-flights-war-as-profits-tumble

Funny how BA seem to be safe but the article thinks there is 'A large question mark over the others'! Think the writer (and the analyst) have BA frequent flyer miles!!

[Darren Wheeler]

This is just ONE analyst saying a number of airlines were at RISK.

Nothing says they are going bust.

Originally posted by musicmanbrain

Funny how BA seem to be safe

Apparently by consolidation with Iberia.

Paul

[RichardMannion]

So profits are down, so that means cut fares more? Mmm.

Maybe I'm alone in thinking that the fares are actually too low anyway and this 'competition' is causing some of the mess. Kind of like the state of the mortgage market right now - sorry, if you didn't have the 10% deposit, then you don't get a mortage. No, lets do 100% or higher mortgages to make them available for practically everyone and totally f*ck it.

Would love to see the correlation between # of complaints by price paid for ticket.

That's a headline worse that the tabloids. [V]
VS have an excellent hedged position for this year and reasonable for the next.

MOL is known to have misread the oil price - he did not hedge when he could have - now obviously a big mistake!
He is understood to recently have hedged till the end of this year - but he had to pay considerably more for his oil than VS!

MOL is somewhat Green in more ways than one

Originally posted by Bill S
That's a headline worse that the tabloids. [V]
VS have an excellent hedged position for this year and reasonable for the next.

MOL is known to have misread the oil price - he did not hedge when he could have - now obviously a big mistake!
He is understood to recently have hedged till the end of this year - but he had to pay considerably more for his oil than VS!

MOL is somewhat Green in more ways than one

Bill,
Erm the Daily Express is a tabloid [y]

Originally posted by sixdownkeepsafedepth

Originally posted by Bill S
That's a headline worse that the tabloids. [V]
VS have an excellent hedged position for this year and reasonable for the next.

MOL is known to have misread the oil price - he did not hedge when he could have - now obviously a big mistake!
He is understood to recently have hedged till the end of this year - but he had to pay considerably more for his oil than VS!

MOL is somewhat Green in more ways than one

Bill,
Erm the Daily Express is a tabloid [y]

Referring to the Thread Title - and specifying VS!

I Knew that!

Regards
Bryan

Another analyst's reaction!
And also investor reaction...

I tend to take stories like this with a pinch of salt these days. The analysts work for the same banks who decided it would be a good idea to lend billions to people to buy houses when they didn't have a hope in hell of paying it back. All of this was driven by short term greed and now we are all paying the price for it.

If you want to see into the future go and see Gypsy Rose Lee. She's cheaper and much more entertaining. Oh, and she won't carry on creaming 10% off your portfolio as it disappears down the toilet.

Miopyk[8D]

Originally posted by RichardMannion
So profits are down, so that means cut fares more? Mmm.

Maybe I'm alone in thinking that the fares are actually too low anyway and this 'competition' is causing some of the mess. Kind of like the state of the mortgage market right now - sorry, if you didn't have the 10% deposit, then you don't get a mortage. No, lets do 100% or higher mortgages to make them available for practically everyone and totally f*ck it.

Would love to see the correlation between # of complaints by price paid for ticket.

Agree 100%, the economy needs people like you to say it like it is.

Cut price to spite competition in the long run is always the road to ruin, whats the point in grabbing the biggest slice of a market by undercutting everyone and then when you get it its next to worthless.

Whilst there is a lot going on at the moment with oil prices etc I find it strange that some people think VS might be in trouble. As said previously thay have bought their oil well and have a good strategy for the next few years.

Also, has anyone taken the long walk from the front of the aircraft to the back recently? The loads are very good. If the flights were empty it might be a different matter.

Originally posted by Bill S
That's a headline worse that the tabloids. [V]
VS have an excellent hedged position for this year and reasonable for the next.

MOL is known to have misread the oil price - he did not hedge when he could have - now obviously a big mistake!
He is understood to recently have hedged till the end of this year - but he had to pay considerably more for his oil than VS!

MOL is somewhat Green in more ways than one

Qantas hedge their oil up until July/Aug this year, which was great business sense on their part, but they are still charging the fuel charge?? Taxes home LHR-SYD return are nearly £500? I know they all need to make money, but thought with BA charging the earth for their taxes they could more bums on seats?

Well this is just my thought and my 2 cents worth.

DMB

Well this is a problem. It was only very recently that some airlines bumped up their fuel surcharge due to the 'rising cost of oil'

Oil prices have started a bit of a retreat in the past week or so and in response garages round my way (and I am led to believe across the UK) have dropped the price of unleaded from 117.9p a litre to 111.9p a litre in the space of a week.

I suspect the airlines who recently increased their surcharges (despite having already hedged their positions) won't follow suit and reduce the surcharge. I just feel ripped off with the airline surcharge, it makes me mad.

Lets be fair here though, the only reason the price of unleaded petrol has dropped in line with oil decreases is because of the competition brought about by supermarkets. A bit of a catch 22 situation here I think, on the one hand we won't grumble when the supermarkets bring down the cost of our petrol but, for some reason we don't want the same competition with airlines as seen in some posts above blaming the competition as a reason everything is in a mess now (lets not get into the surcharge price fixing collusion which is now being dealt with!).

It is The Daily Express. That comes with a free sachet of salt everyday to take with their reporting.



Hmm. I was hoping my first post would be more dramatic.

Originally posted by daywalker
Lets be fair here though, the only reason the price of unleaded petrol has dropped in line with oil decreases is because of the competition brought about by supermarkets. A bit of a catch 22 situation here I think, on the one hand we won't grumble when the supermarkets bring down the cost of our petrol but, for some reason we don't want the same competition with airlines as seen in some posts above blaming the competition as a reason everything is in a mess now (lets not get into the surcharge price fixing collusion which is now being dealt with!).

Good for supermarkets, helping to cut prices. BUT, oil prices closed yesterday at $115 in New York and $112 for Brent ... prices last seen at the start of this year. It won't be long before demands for airlines to reduce their fuel surcharges come along ... I recently booked a PE return to New York and the extras came to £380, which is getting silly.

[Darren Wheeler]

Not going to happen. The price of oil is actually now at the same level as beginning of May this year.

VS introduced the surcharge way back in May 2004 when the price was a mere $41 a barrel.

[RichardMannion]

And lets not forget the surcharges don't cover anywhere near 100% of the increased fuel cost.

Originally posted by Darren Wheeler
Not going to happen. The price of oil is actually now at the same level as beginning of May this year.

VS introduced the surcharge way back in May 2004 when the price was a mere $41 a barrel.

But if my experience is anything to go by the surcharge has increased considerably over the last 6 months or so.

Do VS actually publish what their current fuel surcharges are? If not how do we know what percentage of their fuel increases are covered in line with the percentage increase in crude oil prices.

I, like others, am suspicious that this, like speed cameras, was introduced for good reasons initially but may have become another revenue stream.

Miopyk[8D]