- Dublin: -0.4% year-on-year;
- Cork: -4.8%;
- Shannon: -26.8%.
And between Jan-Oct:
- Dublin: -9.4%;
- Cork: -9.2%;
- Shannon: -34.6%.
And between Jan-Oct:
Periodically throughout the last few years jetBlue has hinted that long haul trans-Atlantic flights could be a possibility at some point in its evolution. But in mid-2016 the company took a more concrete step towards serving trans-Atlantic routes by altering its Airbus order book – potentially to support long haul expansion.
JetBlue’s decision to option the Airbus A321LR occurs at a time when airlines such as WestJet, Norwegian Air Shuttle and WOW Air are pushing the low cost model into the long haul international market. Perhaps the steps those airlines are taking to carve out the low cost niche in the long haul space has accelerated jetBlue’s evaluations of trans-Atlantic service. The company has declared that it would make a decision about its options for the long-range Airbus narrowbody in 2017 ahead of the narrowbody’s debut in 2019.
The biggest drivers for jetBlue’s decision to enter the long haul trans-Atlantic market are identifying routes where it can inject low fares to stimulate traffic and drive revenue. The company’s base in Boston is emerging as the epicentre for those potential opportunities.
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
This second part of CAPA's analysis considers the profit improvement programme. During this programme Vueling's fleet will remain broadly flat to 2018, before resuming growth thereafter. Focus markets for Vueling are domestic Spain and Spain-Europe. It has strengths in these markets but faces growing competition from its lower-cost rival Ryanair, which has also been raising its service quality – closing the gap to Vueling's more premium positioning on the LCC spectrum.