Airlines, impact for the next 3 years?

lemonjelly

It appears that the airlines are having a struggle at the mo. BA are at loggerheads with Unite over changes to T&C's of employment, modernisation etc etc. http://news.bbc.co.uk/1/hi/business/8337188.stm

Also, Ryanair appear to be using the crunch to strengthen its negotiating arm, by trying to cop a cut price deal on new planes, & threatening to halt expansion & pay increased dividends to shareholders instead if they don't get their own way.

Reports on US airlines are very varied. Some are doing well, others appear to be struggling on, at the edge of a precipice.

Japan is looking at nationalising its airline http://news.bbc.co.uk/1/hi/business/8325584.stm:eek:

How will this affect us? Less flights? More staycations? Huge incentives to visit the many heritage sites we have in the UK? Booming international tourism coming here due to the £? Further strengthening of the market position of Ryanair? Weakening of the market position of planemakers?

Answers on a postcard...;)

Mr_Matey

It must be good for Eurostar...

lostinrates

lemonjelly wrote: »

It appears that the airlines are having a struggle at the mo. BA are at loggerheads with Unite over changes to T&C's of employment, modernisation etc etc. http://news.bbc.co.uk/1/hi/business/8337188.stm

Also, Ryanair appear to be using the crunch to strengthen its negotiating arm, by trying to cop a cut price deal on new planes, & threatening to halt expansion & pay increased dividends to shareholders instead if they don't get their own way.

Reports on US airlines are very varied. Some are doing well, others appear to be struggling on, at the edge of a precipice.

Japan is looking at nationalising its airline http://news.bbc.co.uk/1/hi/business/8325584.stm:eek:

How will this affect us? Less flights? More staycations? Huge incentives to visit the many heritage sites we have in the UK? Booming international tourism coming here due to the £? Further strengthening of the market position of Ryanair? Weakening of the market position of planemakers?

Answers on a postcard...;)

I find the whole air thing very interesting. e.g. I'm surprised at how generous, in time of struggle, BA's staff flight benefits are.

lemonjelly

lostinrates wrote: »

I find the whole air thing very interesting. e.g. I'm surprised at how generous, in time of struggle, BA's staff flight benefits are.

I agree. I think that is part of why they & the union will probably tough it out. Unite are looking to take court action against BA to protect their members. Admirable, however if the company goes kaputt, how will unite look after their ex-members, or raise funds following a sudden fall in membership subscriptions?

Wookster

lostinrates wrote: »

I find the whole air thing very interesting. e.g. I'm surprised at how generous, in time of struggle, BA's staff flight benefits are.

Agree for sure.

I don't think the unions are aware of how serious their predicament is.

Unlike Royal Mail which has the seemingly endless pockets of the tax payers, BA has finite resources and may very well go bankrupt.

The Unions are really digging a hole for themselves and a Christmas strike could be the final curtain call.

purch

I don't think the unions are aware of how serious their predicament is

Yep.

Heard Michael O'Leary on the Radio commenting on how BA are trying to cut the cost of the free meals it provides it's staff from £ 6.5 million :eek: to
£ 2.5 million !!!!!

lemonjelly

Interesting one from the competition perspective/pure capitalism. Are there too many airlines? Will the weakest go to the wall?

I don't fly, yet everything I hear about them causes me to abhor Ryanair.

nearlynew

The rise is air travel was just another form of debt-fuelled consumerism.

Take away the ability to borrow cheap and easy money and people are actually skint.
Hence the airlines are now struggling.

zappahey

nearlynew wrote: »

The rise is air travel was just another form of debt-fuelled consumerism.

Not entirely.

There is also that fact that, in real terms, air travel is phenomenally cheap compared to a couple of decades ago. It's hardly any cheaper to holiday in the UK than to take a flight somewhere overseas.

vivatifosi

lostinrates wrote: »

I find the whole air thing very interesting. e.g. I'm surprised at how generous, in time of struggle, BA's staff flight benefits are.

BAs benefits package is not straightforward. What you get depends on what you do for work, how long you've been there, how high up in the company you are, what contract you're on and where you work. There isn't a "one size fits all". The actual flight benefits package is often not as good as other long haul airlines. The contract changes have been going on for years.

In terms of flight benefits, its true you get the option of heavily discounted flights, but bear in mind you never come above a commercial passenger: the airline is flying there anyway and if there's a spare seat you can get it - so you aren't going to get on the most popular and oversubscribed flights. When we went to Australia we bought proper tickets as its the only way we could guarantee getting there and back. It isn't as easy or as straightforward as it looks.

lostinrates

vivatifosi wrote: »

BAs benefits package is not straightforward.....

thats interesting. Hmm I feel a pm to you coming on...:D