Ryanair Censured

[Tim Deegan]

Originally Posted by Alan Fry

No, there will be savings from a BA/Easyjet merger and BA would do a takeover of Easyjet with shares, if that was the case ten BA/Easyjet would work

Easyjet's profits would just be swallowed up by BA's losses, and then Easyjet's service would suffer, probably leading to them changing from being the best budget airline, to being as bad as or worse that Ryan Air.

How is your logistics company getting on Alan? I presume they aren't very busy?

I thought you didn't like big corporations, and preferred smaller independent companies instead?

[Alan Fry]

Originally Posted by Tim Deegan

Easyjet's profits would just be swallowed up by BA's losses, and then Easyjet's service would suffer, probably leading to them changing from being the best budget airline, to being as bad as or worse that Ryan Air.

How is your logistics company getting on Alan? I presume they aren't very busy?

I thought you didn't like big corporations, and preferred smaller independent companies instead?

Easyjet service will not suffer, it is already worse than BAs for starters and like you said, users of low cost carriers do not care much about service

I like companies (big or small) that are well run and care more about profits

[Tim Deegan]

Originally Posted by Alan Fry

Easyjet service will not suffer, it is already worse than BAs for starters and like you said, users of low cost carriers do not care much about service

I like companies (big or small) that are well run and care more about profits

You have never used Easyjet, so how do you know?

Easyjet do what they are designed to do very well indeed, and make big profits from doing so. They are a completely different type of airline to BA.

BA on the other hand have been lowering their standards (according to many users), are overcharging, and are making big losses.

The way for BA to compete is to concentrate on their profitable business customer routes. And then either shut down their none profitable routes, or make them profitable by operating more like Easyjet, and lowering their prices.

[Alan Fry]

Originally Posted by Tim Deegan

You have never used Easyjet, so how do you know?

Easyjet do what they are designed to do very well indeed, and make big profits from doing so. They are a completely different type of airline to BA.

BA on the other hand have been lowering their standards (according to many users), are overcharging, and are making big losses.

The way for BA to compete is to concentrate on their profitable business customer routes. And then either shut down their none profitable routes, or make them profitable by operating more like Easyjet, and lowering their prices.

You cannot deny that even Easyjet cannot provide the same service as a full service airlines

If I was running BA/Easyjet, I would provide both services on the same routes, but with far more Easyjet services on those routes and less BA services (more do want Easyjet rather than BA), os it could work for both airlines. I will also improve BA's standards and retain Easyjet's standards

In other words, it will be like Qantas/Jetstar (where I would also be looking for BA to merge with)

[Tim Deegan]

Originally Posted by Alan Fry

You cannot deny that even Easyjet cannot provide the same service as a full service airlines

Of course they could if they wanted to. But they would have to charge more, and like BA they would lose customers. So it's a no brainer Alan

Originally Posted by Alan Fry

If I was running BA/Easyjet, I would provide both services on the same routes, but with far more Easyjet services on those routes and less BA services (more do want Easyjet rather than BA), os it could work for both airlines. I will also improve BA's standards and retain Easyjet's standards

In other words, it will be like Qantas/Jetstar (where I would also be looking for BA to merge with)

You aren't runnig BA, and you never will be.

As I said previously in this thread (read the posts), BA tried this and failed. Then Easyjet took over GB Airways from BA. Easyjet also bought out Go in 2002. So if anyone is going to take over anyone, then Easyjet would be more likely to take over BA, or at least part of it.

[Alan Fry]

Originally Posted by Tim Deegan

Of course they could if they wanted to. But they would have to charge more, and like BA they would lose customers. So it's a no brainer Alan



You aren't runnig BA, and you never will be.

As I said previously in this thread (read the posts), BA tried this and failed. Then Easyjet took over GB Airways from BA. Easyjet also bought out Go in 2002. So if anyone is going to take over anyone, then Easyjet would be more likely to take over BA, or at least part of it.

If I was running BA/Easyjet then I would keep Eastjet as a low cost airline, also the reason Go failed was that when it launched, the market was crowded with LCCs and Go was not big enough to compete, BA should have bought Easyjet then and they would need to now

Point of information - BA/IAG made a pre-tax profit of over 500 million Euros last year.

[Sirius]

Originally Posted by Chris

That's why you're not running BA, or any other large business. You are quick to offer an opinion but if your prodigious post rate has proved anything, it's that you largely comment from your position in orbit around some planet other than this one.

Publicly-traded companies like BA cannot just buy up other companies in order to 'get the profit'. Buying another company on that scale is a vastly complex and expensive business. It costs a lot of money to do it - money that belongs to BA shareholders who could, if they wished, simply take out of BA by selling their BA shares and then invest in Easyjet instead. That would be a rather more efficient use of capital.

A PLC's remit is to enhance shareholder value, not destroy it, or even hold it static (which in a market economy is the same as destroying it). BA would have to show how buying Easyjet would *improve* return on capital employed. It won't try to buy that company because it's unlikely it old show any such thing.

Oh, and the competition commission would probably have something to say about it too.

I don't think he knows there is a difference between a chat programs and a forum.

---------- Post added at 17:32 ---------- Previous post was at 17:31 ----------

Originally Posted by Tim Deegan

You aren't runnig BA, and you never will be.

Can you imagine the mess if he was

[Tim Deegan]

Originally Posted by Alan Fry

If I was running BA/Easyjet then I would keep Eastjet as a low cost airline, also the reason Go failed was that when it launched, the market was crowded with LCCs and Go was not big enough to compete, BA should have bought Easyjet then and they would need to now

You need to get a few facts straight in your head Alan:

http://en.wikipedia.org/wiki/Go_Fly

[Alan Fry]

Originally Posted by Sirius

I don't think he knows there is a difference between a chat programs and a forum.

---------- Post added at 17:32 ---------- Previous post was at 17:31 ----------



Can you imagine the mess if he was

I do know the diffrence and I would be no worse at running BA than the current management

[Tim Deegan]

Originally Posted by Hugh

Point of information - BA/IAG made a pre-tax profit of over 500 million Euros last year.

That's good to hear. BA on their own were making big losses year after year. I presume that's more to do with the Iberia side of the company then.

[Alan Fry]

Originally Posted by Tim Deegan

You need to get a few facts straight in your head Alan:

http://en.wikipedia.org/wiki/Go_Fly

It was sold becuase of a change of management, BA should still have bought Easyjet

[Tim Deegan]

Originally Posted by Alan Fry

I do know the diffrence and I would be no worse at running BA than the current management

Alan we have all read your ideas about running a company, and I think Gerald Ratner had a better idea about running a business

---------- Post added at 17:45 ---------- Previous post was at 17:44 ----------

Originally Posted by Alan Fry

It was sold becuase of a change of management, BA should still have bought Easyjet

Easyjet bought part of BA, not the other way around.

[Alan Fry]

Originally Posted by Tim Deegan

Alan we have all read your ideas about running a company, and I think Gerald Ratner had a better idea about running a business

---------- Post added at 17:45 ---------- Previous post was at 17:44 ----------



Easyjet bought part of BA, not the other way around.

I would certainly run a business better than Gerald Ratner

[Tim Deegan]

Originally Posted by Alan Fry

I would certainly run a business better than Gerald Ratner

Not from the evidence we have seen