As well as creating a low-cost giant focused on Airbus planes, a combined Wizz-easyJet would add Wizz's low-cost bases in eastern Europe to prime easyJet hubs at Gatwick, as well as across France, Switzerland and elsewhere in western Europe. With few cards to play, O'Leary on Wednesday started a game of chicken with Boeing by threatening to forgo any new order from the U.
Observers see few alternatives to returning to the table with Boeing as relations with Airbus are strained and antitrust issues would likely preclude a bid for easyJet.
In fact, O'Leary may welcome an easyJet tie-up as a distraction to Wizz. During the pandemic, a lower cost base and more flexible business model has better protected no-frills players, while difficulties restarting long-haul travel have deepened this advantage. But the challenge for the budget brigade is to achieve growth in a way that does not dilute their cost advantage - either by overpaying for jets or acquiring a higher cost rival - a point made starkly by Wizz chairman and no-frills airline tycoon Bill Franke before the pandemic.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox. Ryanair's growth plans falter as Boeing talks collapse EasyJet strategy questioned as lags recovery Wizz bid for easyJet - short-cut to success or distraction? With Ryanair opening on Gatwick-Shannon in the spring, the first head-to-head battle between them will be to Knock in the west of Ireland, a seemingly inauspicious route but one likely to offer a window to a future in which the airlines will take on each other more aggressively.
EasyJet said in the autumn it was flying to the Republic just days after Ryanair announced it would start flying from Britain to provincial Spain, previously seen as the preserve of easyJet. Weeks later, Stansted-based Ryanair said it would launch on the same Irish routes out of Gatwick.
Ray Webster, chief executive of easyJet, denied his move was titfortat and has attempted to remain diplomatic in explaining his act of aggression. An easyJet spokesman added: 'We are not going to enter into a war of words but, wherever we see price-gouging by an incumbent airline, we'll look at adding capacity. Ryanair's profit margins on these routes are twice what they are anywhere else.
The enlarged company has not ruled out introducing Easy's Internet cafe brand or car rental business into Dublin although a company spokesman said that it would be cheaper to build up a presence in countries where Easygroup operations already existed. Enter email address This field is required Sign Up. EasyJet snubs new Dublin terminal. Facebook Twitter Email. Mr Ray Webster, EasyJet chief executive, said: "These are our first services to the Republic, where air fares in many cases, have remained stubbornly high and have generated consistently strong year-round returns for the incumbent airline.
We are bringing EasyJet's well-established brand to Ireland and will be flying to the right places at the right prices for hundreds of thousands of passengers.
Aviation sources yesterday pointed out that yields from the Shannon and Cork routes are believed to be reasonably good. Aer Rianta, which is due to be abolished shortly, welcomed the announcement about the new services. These new services will provide a welcome boost to tourism and business activity in the Southern and Mid-West regions," it said in a statement. See a sample. Please update your payment details to keep enjoying your Irish Times subscription.
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