Air Slovakia has reportedly declared bankruptcy. Ryanair launched (03-Mar-2010) a EUR69 'rescue fare' for passengers, applying to Bratislava flights to/from Birmingham and Milan Bergamo. Ryanair also pledged to assist with the repatriation of passengers who "may be caught up in any future airline collapse". [more]
Air Slovakia bankrupt - report. Ryanair offers rescue fares
You may also be interested in the following articles...
Ryanair, easyJet, Norwegian, Wizz Air, Pegasus Airlines: Europe's top LCCs' collective margin drops
CAPA's previous analysis of the 3Q2016 results of Europe's big three legacy airline groups highlighted a fall in their collective operating margin, after growth in 1H2016. This report shows that Europe's five leading LCCs, in aggregate, also suffered a fall in profit and margin in the quarter.
Three of the five – Ryanair, Norwegian and Wizz Air – improved their profit margin in the quarter, but easyJet's drop in margin was heavy enough to bring down the collective result. Pegasus' margin also declined.
Nevertheless, the LCC five remain collectively far more profitable than the legacy three. Moreover Europe's two most profitable airlines, Ryanair and Wizz Air, look set to increase their margin lead this year. Even easyJet, which has had a bad year by its standards, achieved a higher margin for calendar 9M2016 than the most profitable of the big three legacy groups, which was IAG.
The divergence of results in the European sector suggest that not all airlines are following the same cycle. However the collective margin decline for the continent's leading LCCs, and its major legacy airline groups, at least gives reason to question whether or not the cyclical upswing may have run its course.
Lufthansa folds Brussels Airlines into Eurowings, keeping dual brands. LH has many balls in the air
On 15-Dec-2016 Lufthansa’s Executive Board formally decided to exercise its call option for the 55% of shares it does not already own in the parent company of Brussels Airlines. The deal will close by the beginning of Jan-2017. It had been expected that Lufthansa would fold Brussels Airlines, at least partly, into its Eurowings low cost brand. Lufthansa has now confirmed that the new acquisition will join Eurowings and be fully integrated into the Group as of 2018.
Nevertheless, there are clear differences between Brussels Airlines' business model and that of Eurowings. Brussels Airlines is a network airline (and a Star Alliance member), while Eurowings is primarily a point-to-point airline. Furthermore, Brussels Airlines is not low cost in CASK terms, although, ominously, its unit cost is below Eurowings'.
Strangely, and perhaps tellingly, Brussels Airlines will retain its brand while adding that of Eurowings. This hints at the tension between Lufthansa's urge to expand Eurowings rapidly to compete with LCCs and the necessity to work out exactly how Brussels Airlines can fit into its low cost operation. Perhaps the delay between completion of the Brussels Airlines acquisition and its integration into Eurowings will give time for further refinements to the model. In short, Lufthansa has a lot of balls in the air. Where they will fall will be critical to its future.