Tuesday, 5 September 2017

Are No Frills airlines becoming TOO powerful?

Ryanair B737-800.
Michael O'Leary has recently claimed that Norwegian and Monarch are in financial trouble,

"O’Leary told journalists in London: “Norwegian will go in four or five months. They are running out of cash. They are scrabbling around daily.” Norwegian denied it is in difficulty, with a spokesman insisting the Ryanair chief executive’s comments “have no root in reality.”
However, O’Leary said: “Both Monarch and Norwegian are in trouble. It’s an open secret among airlines that Monarch and Norwegian may not survive through the winter. They are burning cash. “Norwegian has huge aircraft orders that they don’t have the cash to pay for.”

So whats Michael O'Leary up to, whats his strategy in these fairy risky comments?  is he trying to weaken the airlines so they actually do collapse, cash flow is there life blood and if this is stopped or slowed then it causes a knock on effect. or is he just giving a fair assessment of the market?

No Frills airlines are increasingly becoming too powerful, they are becoming political lobbying and threatening governments and local authorities across Europe, they are creating a tunnel vision for consumers, where as the only way is Ryanair or EasyJet, how does the consumer kick back against these moves!

Well I would recommend Skyscanner.net, it's the premier airfare search engine and always comes up with the cheapest fare, They are objective and help counter the dark noncompetitive forces who try to relieve you of your hard earned money.

One thing you may not know is that there is no consumer protection for No Frills flights, apart from the Consumer Credit act of 1973 where if you have paid by a Credit Card and the purchase was over £100 and it was a UK transaction then you are covered. apart from that you can take out a SAFI policy, FlyLolo.com who recently launched gives this away with the seat sale. Also FlyLolo and other licenced Tour/Flight operators are covered by a CAA ATOL, no Frills are not apart from holiday package arrangements through their holiday divisions. 

So my advice for whats its worth is do a search and check out fares, because if we get down to only one or two airlines on a route, the consumer will pay dearly!!

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