Aer Lingus - basket case? or a bargain?

la la land

From the response to the mgmt statement this morning, it seems as though aer Lingus has almost written itself off.

the result are undeniably appalling -
"Yields declined 1.6% in the two months to end February, but by 23.6% in March "

Was that the final push for mannion ?- or are there more heads to roll?-- cos if jan and feb were only 2 % behind, somebody somewhere is doing something majorly wrong somewhere for that to fall to 24% a month later.

the rearrangement of senior mgmt seems like doing something just to be seen to do something.. the words 'deckchairs' and 'titanic' spring to mind..

so , given the current situation, is it now even viable as a solo entity? or is it ripe for another takeover bid?

Fratton Fred

Is this wildly different from any other airline of a similar size? The whole industry is in the smelly stuff at the moment.

Foggy43

I'm afraid most airlines are loosing more than they predicted. In the current climate and even when there maybe a recovery take over bids are extremely unlikey. Not even Ryanair would risk this now.

Fratton Fred

Foggy43 wrote: »

I'm afraid most airlines are loosing more than they predicted. In the current climate and even when there maybe a recovery take over bids are extremely unlikey. Not even Ryanair would risk this now.

Apt user name for someone based at Heathrow this morning Foggy:D

Sor Michael Bishop pulled a blinder selling BMI to Lufthansa when he did, for the money he did. I can't see too many other acquisitions in the airline world at the moment, other than a few potential mergers. I'mnot sure who would want to merge with Aer Lingus though, other than Ryanair. Aer Lingus' only asset is there Heathrow slots and I'm not sure how profitable they would be at the moment.

Foggy43

My first day off today! My mobile has been receiving texts all day. Chaos on the Piccadilly Line. Did not know about the fog but should have expected it. Rain and heat + a little cold air = even more chaos at LHR.

alpha2zulu

the result are undeniably appalling -
"Yields declined 1.6% in the two months to end February, but by 23.6% in March "

Was that the final push for mannion ?- or are there more heads to roll?-- cos if jan and feb were only 2 % behind, somebody somewhere is doing something majorly wrong somewhere for that to fall to 24% a month later.

Easter fell in March last year which would always give the yields a sharp boost and goes some of the way to explain part but not all of the 24% fall.

Tenger

Deleted at Tengers request by Mod

CaptainSkidmark

Bramble wrote: »

EI are not in a good position but then very few airlines are. The question remains to be answered as to the new Chairman can steer a better course than his predeccessor who made multiple mistakes.

LOT are looking bad. EUR155M losses in 2008
Alitalia are a mess.
Finnair have just posted EUR45M losses for Q12009.

is there a site where that information is available? Im curious to see what other airlines are in trouble.


What ever became of the AirFrance-KLM group takeover of Alitalia?

Foggy43

BA are loosing £3million per day.

Alitalia have been in trouble for as long as I can remember but always survive. Perhaps not a good idea for them to disclose how?

Tenger

Deleted at Tengers request by Mod

la la land

yeah but they did'nt all have 800 million in the back less than a year ago

Tenger

Deleted at Tengers request by Mod

la la land

"I think Aer Lingus is going to run out of cash."

MO'L may be right...

EI won't make the changes quick enough. Unions will delay, management will fudge, and they'll all be kept busy at the LRC ..

In the meantime, given the yield is plummeting, the management aren't making decisions (Airbus?, Fuel Hedging? Mgmt Bonuses) ,there will simple be no cash left.
The only question is, how long will the cash last...

Bobby_1

Hard to know what is going to happen to the airlines. but one thing is for sure, they all cant go bust at the same time!

air

With Aer Lingus currently having a market cap of around 350 million, has anyone got recent figures on their cash at bank (think it's around 450million net cash) and other assets? What kind of value is attributed to the Heathrow slots given the governments say in their disposal?

Tenger

Deleted at Tengers request by Mod