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I hope we don't get to the situation with Manx Airlines and Emerald where the 'price war' effectively ruined the market for both. FFS there is just not the trade to spread thinly amongst operators.

 

However if this does come off I bet there'll be press photo ops etc etc !!

 

Healthy competition is one thing and I agree it will benefit the consumer in the short term, however history has shown that the island has always 'lost' after a price war.

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I hope we don't get to the situation with Manx Airlines and Emerald where the 'price war' effectively ruined the market for both. FFS there is just not the trade to spread thinly amongst operators.

 

However if this does come off I bet there'll be press photo ops etc etc !!

 

Healthy competition is one thing and I agree it will benefit the consumer in the short term, however history has shown that the island has always 'lost' after a price war.

Bet Ma. Reynolds makes sure that she doesn't lose though.

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The main problem is that Aer Arran (and possibly now FLYBE) won't be able to offer low fares - as low as Easyjet - for a sustained period. The worry should be that all other carriers will scarper if their being toasted by Easyjet. It happened in Ireland at Shannon airport. Ryanair moved in. Got a big discount on fees etc and cleared all the other domestic carriers out. Shannon used to have 60 odd european flights a day (5 years ago) with about eight carriers. Now it has around a dozen with Ryanair being the only carrier. They've shafted Dublin too. Aerlingus are only still there because the Government are a large shareholder. They're losing tons of cash there.

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I sincerely believe that Easy jet are being courted in an effort to save some sort of face in regards to the huge expenditure on the airport which we as a society cannot afford !!

 

However their arrival should it go ahead will in my view only add to the problems of providing a sustainable service to as many destinations as possible. As a consumer of course price is important but there is a price level at which it is commercially not viable to operate unless some sort of GOV incentive was being offered and if this was to be the case it is another expense we can ill afford.

 

I have never seen a more disjointed and ill researched development as the airport, it will be a black hole in the islands finances for years to come !!

 

This is what Tynwald read about the possibility of low cost airlines coming to the island :

 

The nature of the air travel industry in Europe has changed significantly over the past ten years with the liberalization of the European aviation market, which fostered a new generation of airlines adopting the ‘no frills’ model established in the USA. These carriers such as EasyJet and RyanAir have established short-haul services across Europe, and have played an important part in economic development, and the regeneration of tourism and business markets.

 

The article ‘Easyjet and Ryanair flying high on the Southwest model’ (2006) discusses the nature of the low cost airline model and its impact on the consumer. The article acknowledges the huge potential benefits for the consumer providing that “the fares keep dropping and the volume of flights takes off”. SQW (2002) also recognise the contribution of budget airlines and state that the low cost carriers have consistently demonstrated an ability to dramatically grow markets that were once considered mature, by generating new passenger traffic without displacing volume from other airlines. The consultants also suggest that the growth in low-cost air travel is set to exceed traditional network airlines by over 500%.

 

The benefits to the consumer of the rise of low-fare airlines are clear, with falling travel costs and a greater choice of destinations. However it remains to be seen whether there are sufficient potential passenger numbers to support an increase in the volume of flights from the Isle of Man, and the introduction of a low cost carrier. Furthermore a question remains over the desirability of their introduction for airport management, and indeed their impact on existing operators.

 

Brown and Pitt (2001) review the provision of airport services to both network and low-fare airlines and identify the fundamental differences in requirements that exist between the two carriers. They suggest that attempting to serve both carriers has huge implications for facilities management, and that generally speaking the provision of differing levels of side-by-side service is not possible within existing infrastructure. Following the identification of the conflicting requirements, Pitt (2001) develops the argument and suggests that airports must make a conscious decision over their service provision and consequently develop a strategic direction to best serve a single carrier type. Pitt (2001) also highlights the demands placed on airport operators and asserts that “in essence the low cost carriers are not prepared to pay for the growth that may, in fact, be necessitated by their own activity”.

 

The CAA (2003) set out a strategic framework for the development of airport capacity in the United Kingdom over the next 30 years, focused around the best use of existing runways. The paper describes an organised national strategy to develop efficient air transport infrastructure by recognising the strengths of individual airports, and therefore avoiding conflicting developments. Similarly Pitt (2001) recognises the link between airports and concludes that “the successful operation (of an airport) is dependent upon a co-ordinated strategy across the country rather than some ad hoc decisions”

 

Caves (1997) categorises airports into ‘hourglass’ and ‘gateway’ hubs, with the former serving directional (regional) traffic and therefore best describing Ronaldsway Airport. The IOM Planning Statement (2006) warns that without the proposed development, the Airport almost inevitably will

become confined to operate in a niche market, with short haul destinations. However Caves (1997) suggests that new ‘gateway’ hubs are hard to justify, and that any airport moving towards that status would be secondary in nature and at a competitive disadvantage. This view is further supported by Southampton Airport (2006) who outline the major growth at the airport but recognise the airport’s role as largely a domestic hub, concluding that competition from nearby international airports such as Bournemouth dictates their expansion plans.

 

Further studies on the impact of low cost airlines include Miller (2006) who discusses the provision for low cost carriers and the airline industry’s propensity to over-expand. Miller concludes that there is a tendency in the industry to use small market booms to justify expansion and investment, and that when the market returns to its natural level, there is large overcapacity. Following this action, losses in the downturns are usually greater than the potential profits in the boom periods, which erodes stockholder wealth. Miller’s cautionary words serve to highlight statements from the IOM planning application where expansion is justified through weak statistics showing unconvincing market growth.

Edited by asitis

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So what experience has Ms Reynolds of running airports? Has she done so before? I'm not saying anything against her - don't know much about her - but it seems airports in general are run by civil servants with little aviation or business experience. Hence why hard nosed airline bosses such as O'Leary and Stellios etc can run rings around them.

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The main problem is that Aer Arran (and possibly now FLYBE) won't be able to offer low fares - as low as Easyjet - for a sustained period. The worry should be that all other carriers will scarper if their being toasted by Easyjet. It happened in Ireland at Shannon airport. Ryanair moved in. Got a big discount on fees etc and cleared all the other domestic carriers out. Shannon used to have 60 odd european flights a day (5 years ago) with about eight carriers. Now it has around a dozen with Ryanair being the only carrier. They've shafted Dublin too. Aerlingus are only still there because the Government are a large shareholder. They're losing tons of cash there.

 

It's more likely to be EZY that struggle to match Flybe's fares in the mid /long term, jets dont fair well at IOM especially on LPL is too short a flight and up against a Q400 pretty much the most fuel efficient plane flying at present. It makes much more sense for the orange tails to have a go at gatwick as its the higher yielding route and more suitable for the aircraft type.

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The main problem is that Aer Arran (and possibly now FLYBE) won't be able to offer low fares - as low as Easyjet - for a sustained period. The worry should be that all other carriers will scarper if their being toasted by Easyjet. It happened in Ireland at Shannon airport. Ryanair moved in. Got a big discount on fees etc and cleared all the other domestic carriers out. Shannon used to have 60 odd european flights a day (5 years ago) with about eight carriers. Now it has around a dozen with Ryanair being the only carrier. They've shafted Dublin too. Aerlingus are only still there because the Government are a large shareholder. They're losing tons of cash there.

 

It's more likely to be EZY that struggle to match Flybe's fares in the mid /long term, jets dont fair well at IOM especially on LPL is too short a flight and up against a Q400 pretty much the most fuel efficient plane flying at present. It makes much more sense for the orange tails to have a go at gatwick as its the higher yielding route and more suitable for the aircraft type.

 

 

I agree wholly, what concerns me is the potential damage ezy could do in the short term trying to put others out of business as this is what they do when they settle at an airport.

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Love them or loathe them,Flybe have indeed made a commitment to the island.

 

For a start,they base their aircraft here,which allows for early departures from the island.Also it means that the aircraft cant be used elsewhere if the needs arise.

Easyjet would not base aircraft here which means no early departures and also when things go wrong and they need an aircraft elsewhere,I suspect it will be the IOM flights that will suffer and take the delays or cancellations.

 

Flybe also employ a substantial ammount of local people.Something Easyjet will not do!

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The main problem is that Aer Arran (and possibly now FLYBE) won't be able to offer low fares - as low as Easyjet - for a sustained period. The worry should be that all other carriers will scarper if their being toasted by Easyjet. It happened in Ireland at Shannon airport. Ryanair moved in. Got a big discount on fees etc and cleared all the other domestic carriers out. Shannon used to have 60 odd european flights a day (5 years ago) with about eight carriers. Now it has around a dozen with Ryanair being the only carrier. They've shafted Dublin too. Aerlingus are only still there because the Government are a large shareholder. They're losing tons of cash there.

 

It's more likely to be EZY that struggle to match Flybe's fares in the mid /long term, jets dont fair well at IOM especially on LPL is too short a flight and up against a Q400 pretty much the most fuel efficient plane flying at present. It makes much more sense for the orange tails to have a go at gatwick as its the higher yielding route and more suitable for the aircraft type.

 

 

I agree wholly, what concerns me is the potential damage ezy could do in the short term trying to put others out of business as this is what they do when they settle at an airport.

 

Two points:

 

1. EZY have a lot more cash in reserve than FLYBE have and can afford to battle them. It's probably part of an overall strategy to wipe them out - They're not very flush these days, and wouldn't take much to kill 'em off.

 

2. EZY can start a new route and will most likely get a substantial grant and extremely likely pay little or no airport charges for the first few years. And can write any losses off against tax...

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1. EZY have a lot more cash in reserve than FLYBE have and can afford to battle them. It's probably part of an overall strategy to wipe them out - They're not very flush these days, and wouldn't take much to kill 'em off.

 

 

This is far more likely to the the reason Easy wants to have an IoM route. Previously Euromanx was the feeder to Easy's hubs in Gatwick, Liverpool, Luton, and Manchester, but it wiped itself out. Flybe now delivers to those hubs but has its own network based on those airports as well. In fact Easy and Flybe both serve about 30 UK routes based on those hubs, and both serve a pretty similar basket of about 70 routes in total, all popular European destinations.

 

Getting rid of Flybe on ALL of those routes would be a big benefit to Easyjet, and pricing them out of business is probably cheaper than purchasing, especially at a time when all airlines are potentially vulnerable.

 

I don't care either way. I hate both of them, but I think Flybe is probably the least likeable of the pair.

 

On the other hand, what will be the outcome if Easy is in the process of closing Flybe down, and succeeds? Will the Big Orange give a toss about the tiddly Isle of Man market and its travelling public of three men and a dog? Unlikely. So no chance of basing aircraft here, and no early flights out or late flights back. It'll be Gatwick - IoM - Gatwick first thing in the morning, and a similar pattern in the evening, or worse still, one flight a day mid-morning - as Flybe does now to Luton.

 

Big (180 seats) jets are not economical for Liverpool, Manchester or Belfast. Easyprop anyone? I don't think so, but I suppose it's possible.

 

No, the outlook isn't good for the Island, and if I was the fat controller in Exeter, I'd be afraid. Very afraid.

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1. EZY have a lot more cash in reserve than FLYBE have and can afford to battle them. It's probably part of an overall strategy to wipe them out - They're not very flush these days, and wouldn't take much to kill 'em off.

 

 

This is far more likely to the the reason Easy wants to have an IoM route. Previously Euromanx was the feeder to Easy's hubs in Gatwick, Liverpool, Luton, and Manchester, but it wiped itself out. Flybe now delivers to those hubs but has its own network based on those airports as well. In fact Easy and Flybe both serve about 30 UK routes based on those hubs, and both serve a pretty similar basket of about 70 routes in total, all popular European destinations.

 

Getting rid of Flybe on ALL of those routes would be a big benefit to Easyjet, and pricing them out of business is probably cheaper than purchasing, especially at a time when all airlines are potentially vulnerable.

 

I don't care either way. I hate both of them, but I think Flybe is probably the least likeable of the pair.

 

On the other hand, what will be the outcome if Easy is in the process of closing Flybe down, and succeeds? Will the Big Orange give a toss about the tiddly Isle of Man market and its travelling public of three men and a dog? Unlikely. So no chance of basing aircraft here, and no early flights out or late flights back. It'll be Gatwick - IoM - Gatwick first thing in the morning, and a similar pattern in the evening, or worse still, one flight a day mid-morning - as Flybe does now to Luton.

 

Big (180 seats) jets are not economical for Liverpool, Manchester or Belfast. Easyprop anyone? I don't think so, but I suppose it's possible.

 

No, the outlook isn't good for the Island, and if I was the fat controller in Exeter, I'd be afraid. Very afraid.

 

Exactly and your post illustrates the naivety of those here who will do anything to try and justify the folly of this huge waste of our money ! unless the IOM have a clear picture of the trading conditions under which our carriers are operating we run the risk of losing them all !! EZY have no need of the IOM so as quick as they are to embrace it they will drop it just as easily we don't have the traffic volume to keep them. As an aside I wonder what the running costs are now for the airport ? another black hole for the publics money to try and fund and EZY will contribute not a penny !!

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Since 2000, the average number of people flying daily according to the government's passenger survey (all departures), has gone up from 960 (yr 2000) to 1033 (yr 2008), an increase of just 73 a day. It peaked in 2005 with 1090 (an extra 130 per day wrt 2000 in 2005).

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For me it would be good to have EasyJet flying to a hub so that I can get a single ticket from Zurich to the Island.

 

I agree with the comment that once money is lost they'll pull out and on the way we'll lose FlyBe and/or Manx2.

 

Boat in the morning I guess :(

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From MR: easyJet service to start in May. "A new six times a week service to Liverpool will begin on May 21. An airbus 319 will operate on the route, seating up to 156 passengers."

 

'Airport director Ann Reynolds will be speaking live on Mandate this morning with John Moss from 7.30am.'

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From MR: easyJet service to start in May. "A new six times a week service to Liverpool will begin on May 21. An airbus 319 will operate on the route, seating up to 156 passengers."

 

'Airport director Ann Reynolds will be speaking live on Mandate this morning with John Moss from 7.30am.'

 

What a coincidence, a good news announcement a day before the budget speech.

 

Let us all be thoroughly reassured on this dull Monday morning.

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