Shannon Airport: "No commercial airport in Europe could agree to the non-negotiable terms set out by Ryanair in relation to Shannon. As a commercial company, Shannon Airport is committed to incentivising growth, but any agreement has to be financially viable for both the airport and the airline. Ryanair’s terms would be financially ruinous for any airport. Ryanair’s claim that it is merely seeking an extension of an existing incentive scheme available in Dublin is utterly untrue. Its claim that other airlines are availing of a similar incentive scheme is also untrue. What Ryanair has demanded bears no relation whatsoever to any existing scheme at any DAA-owned airport. Rather than paying the normal passenger charges at Shannon, Ryanair wants instead to be paid EUR4.70 by Shannon Airport for every passenger it brings to the airport ... The traffic decline at Shannon Airport over the past 12 months is almost entirely due to the withdrawal of Ryanair services, following the end of Ryanair’s previous deal with Shannon, the terms of which Ryanair failed to honour. About 90% of the decline in passenger numbers is due to the significant reduction in Ryanair services. Ryanair also failed to deliver the tourist numbers that it promised for the region under the previous Shannon agreement," Company Statement, 01-Mar-2011.
Shannon cannot agree to Ryanair’s 'unreasonable demands'
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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.
LOT Polish Airlines: new LA service highlights value of long haul; short haul heat from LCCs remains
On 3-Apr-2017 LOT launched its longest direct service, between Warsaw and Los Angeles, deploying Boeing 787-8 aircraft. Los Angeles is LOT’s fourth North American destination and its first regular service to any US west coast destination. It is also the only direct flight anywhere between Central Europe and the US west coast. Warsaw-Newark and Krakow-Chicago route launches will follow later in summer 2017.
As it is with its other long haul routes, which also include three Asian destinations, LOT is aiming the new LA service not only at O&D traffic from Warsaw, but also squarely at passengers travelling to Southern California from across the Central European region. LOT is the only significant long haul operator in the region and the only one serving Los Angeles. Its Warsaw Chopin hub is the only airport between Vienna and Moscow with more than 1,000 long haul flights per year.
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