Failure of XL

[AllanL]

Another airline fails....

http://news.bbc.co.uk/1/hi/business/7611639.stm

Wonder how many more are going to manage to make it through the autumn as summer holiday passenger numbers fall away.

[speedbird591]

Wonder how many more are going to manage to make it through the autumn as summer holiday passenger numbers fall away.

Michael O'Leary of Ryanair famously announced that only a handful of European airlines would make it through this recession, the rest going bankrupt or being absorbed. Ryanair, Easyjet, British Airways, Air France-KLM and Lufthansa are likely to be the survivors. A business article in today's Times seems to agree with him and says :" The only solution for holidaymakers is to heed Mr O’Leary’s prediction and spend their money wisely."
http://business.timesonline.co.uk/tol/b ... 735802.ece

And in this article : http://business.timesonline.co.uk/tol/b ... 737592.ece BA announce that 1,400 senior managers are to go and that 30 more airlines will go bankrupt before Christmas!

When there are only a few left and the competition is devastated, I wonder which way fares will go ?

Ian

[cstorey]

To any list of survivors has to be added Virgin which is of course backed by probably the most profitable and financially strong airline in the world. I am less confident that any of the low cost airlines will survive if the recession is prolonged, however loud mouthed their managers may be . The real problem is not just the economy, but also fashion : the fad for relatively pointless short term travel e.g. stag parties etc seems to be passing , and it is the budgets who are likely to feel that draught quickest and hardest

[Garry Russell]

Travel agents report after XL went under rebookings saw a 50 percent rise.........presumably on the routes the pax are stranded on

Garry

[SkippyBing]

BA has 1400 senior managers to sack! No wonder their fares are so expensive, they've got what 240 aircraft so that's just under 6 managers per aircraft, that makes the Navy's Admiral to Ship ratio look sensible!

[Vulcan_to_the_Sky!]

I know a few people affected by this, and its certainly messed up their holiday plans. Its strange really, two weeks ago one was checking which airline they were flying with after Zoom went, and now finds that the airline she thought she was safe with has now gone as well.

I wonder how long it will be before we're just left with the major players, certainly on a global/international scale.

Its interesting to see on their website that the French and German Companies are still going....and a fair few other airlines have latched onto the idea of people who suddenly dont have flights needing to re-book them quickly, and putting their prices up to make a bit of profit out of XL's Collapse. Some are going up by a few hundred pounds!

[SkippyBing]

people who suddenly don't have flights needing to re-book them quickly, and putting their prices up to make a bit of profit out of XL's Collapse

That'll be supply and demand then.

[Garry Russell]

It quite normal nowadays to pay more for last minuet booking.

I don't know it there really needs to be a recession but the Government and others keep telling us there will be one as if they want it to happen

That does not instill confidence in any buisiness seeking help in difficult times, or preserving the mass market low cost needs to survive.

Garry

[TSR2]

We ARE in recession. Reccession is two or more consecutive quarters of negative growth, and we're there already. People are spinning it to pretend we aren't.

[Garry Russell]

It's al relitive, negative groth does not have to mean loss

They don't seem to talk with any spirit of beating this.

I don't see the people at the top cutting back much

Garry