Bloody summer ahead for European airlines

K

Koenigsberger_Katjase

Well-Known Member
Friend of mine was at a dinner for aviation women in Vienna tonight and had some long discussions with some higher ups and a few good pieces of gossip came out. What do you guys think:

1) Aegean (A3) is already bankrupt but the capital controls are basically hiding it.

2) Etihad's billion dollar bond offering fell through also because of Greece. Half of the money was to be split by AIr Berlin (AB) and Alitalia (AZ). Now it seems that both have very low cash positions but I believe AB's is the lowest it has ever been.


I know not many invoked in the airline scene here in Europe but I thought it was very interesting. What do you think?
 
Europe hasn't gone through the consolidation rounds that the US has, despite the economy being in similar shape there. Some of that is because of the ability to be shielded by capital controls and some of that is because of the nature of European flying. I'd say a reduction in the number of operators in a very real possibility.
 
Tough times for international travel. South America has been weak, Europe weak, China's economy is softening. Just hope domestically can keep up while international travel recovers.
 
Well, as the fed tapers quantitative easing here in the U.S., inflation will naturally rise. And as inflation rises people will likely spend less on travel etc... There is bound to be a retraction at some point. The economy here has been artificially propped up for so long it just can't sustain this way forever. And it will just happen to coincide with the seemingly increasing lack of pilots here in the U.S. Less demand equals less flying equals less pilot jobs. That or another war could start. Or any other number of things. Historically, were bound for something to happen at this point.
 
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