Ryanair’s CEO Michael O’Leary recently declared that “more airlines [will] suffer casualties” (go bust) this winter.
“I think we’re entering into what I describe this morning as a grim winter,” the chief executive told analysts. “It’s not related to Ryanair or unions, it’s related to excess capacity and certainly our willingness to continue to lower airfares into this winter. If there’s going to be a fare war, we want to lead this and win it.”
With too much capacity and too many airlines flying too many planes, high fuel costs and low fares, airlines are being pushed to the brink.
He seems to have rivals like Norwegian and Wizz Air in mind.
Of course, because Michael O’Leary says something doesn’t mean it’s true. Last year he predicted that Norwegian and Monarch Airlines wouldn’t survive the winter. Norwegian is still flying, and British Airways parent IAG has taken a small stake. Equally, his predictions weren’t that far off the mark as Monarch ceased operations October 2, 2017.
How about the likes of WOW Air and Wizz? WOW needed a bond sale in September to survive which gives them around 6 months to a year.
With Primera and Cobalt Air going bust, my advice is sadly not to book with WOW or Wizz. Legacy carriers are a much safer bet and should get you home, WOW and Wizz risk not getting you there or back.
Norwegian sold assets and a share offering in March. This gave them liquidity but WOW and Norwegian (or both) may not be around by the end of 2019, so be wary before spending your hard on cash with these airlines as they may not get you there or back.
Remember, if you are planning to book a First or Business Class flight or a luxury hotel, contact our luxury travel concierge to get a quote before booking. We offer free upgrades, free breakfasts, deals and special benefits. We only book flights on legacy carriers and not low cost and budget airlines. We don’t want you to get caught out!
HT: View From The Wing
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