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Ryanair today predicted that only five carriers will survive in Europe.
Speaking at an airline conference in London, deputy chief executive Howard Millar, told the audience that only five European airlines are fit enough to survive the ongoing turmoil in aviation.
He named easyJet and Ryanair as the two low cost carriers that would survive, and a spokesman for the airline confirmed that British Airways, Lufthansa and Air France/KLM were the remaining three.
Speaking to an audience of his industry peers, Millar said there would be further consolidation in the aviation sector. The outcome would be a loss of jobs, plus fewer flights, meaning less choice for travellers.
There was some good news for holidaymakers: Millar said fares would come down. “People are more price sensitive and carriers will struggle to fill their seats unless they reduce fares,” he said.
Ryanair remained unusually gloomy about its expectations for the year. Millar said the carrier hoped to break even, although this is an improvement on its warning in July, that the airline would make a loss this year for the first time since 1989.
Ryanair claims it will break even as long as oil continues to be priced at less than $100 a barrel. Nevertheless, it still plans to ground 14 aircraft this winter at Stansted airport because of high fuel costs.
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Let's just hope that Ryanair isn't one of them ;-)
Queuing with them is a dreadful, never to be repeated, experience :-((
Barbara, Flackwell Heath, UK
The rule of what??? Hilton/Sheraton (I think you mean Starwood)/Marriott/Six Continents; Ford/GM/..er TOYOTA (already bigger than your 2)/Volkswagen/Honda/PSA Citroen/Nissan-Renault; Hertz/Avis/Dollar-Thrifty/Europcar/National-Alamo... the numbers just don't seem to add up to 2.
Andrew, Madrid, Spain
Have you never heard of the rule of 2 ? Hertz/Avis, Hilton/Sheraton, Ford/GM, to name but a few sectors, as all industries mature there is always consolidation until 2 majors rise above the rest, 5 majors is not unreasonable, but not 5 in total.
David, Glasgow, UK
Just re-read my post 3 times, definitely didn't say Ryanair was unsuccessful. Their view IS narrow even if they are successful, they operate in a limited sector, and to say there will only be 5 airlines in Europe is naive. This view comes from a global multi-sector perspective, hardly narrow.
Andrew, Madrid, Spain
I welcome these comment by Howard Millar, the general public have got to realize that to have these uneconomical Airlines scratching around trying to make a profit on old dirty Aircraft in a time of global warming are over. Leave it to the big Player, this is an opportunity not to be missed.
paul, woodford,
To say that such a successful company has a narrow view of the world is pretty narrow indeed. I think that with this strategy Ryanair is just trying to scare possible investors with rescue plans in troubled airlines and force earlier consolidation.
Alberto, London, UK
Ryanair demonstrate yet again their limited knowledge of the airline industry in general based on their own narrow view of the world. Does Howard Millar really believe that over 300 European airlines are going to go bust (and those are just the ones that I know of)?
Andrew, Madrid, Spain
Not such a bad thing really, far too much capacity out there at the moment, it will help cut down on the more poluting frames, ease some ATC congestion and relieve some pressure off LHR.
frank, Oxford,