Thursday, September 25, 2008

Next Airline to go Bust?

The global aviation industry is facing tough times as fuel costs rise, and passenger numbers fall, partly due to the current economic credit crunch. So which airline will fold next?

Every passenger would like to be able to predict the future, especially when booking a flight with an at-risk airline.

Often flights are booked significantly in advance to take advantage of the airlines’ price-structure, which steadily escalates prices as days edge closer to the departure date, with the peak price conventionally on the day of the flight.

Aviation is suffering in the unstable economic climate, with several airlines with potential to follow the likes of Silverjet, Zoom, and XL Airways. The number of airlines competing in this small-margin industry has been great, and this over-supply of airborne seats has driven price wars and unbelievably low ticket values.

Which Airlines Are at Risk of Going Bust?

Another first for Travel Insurance Insider; consumers can now see for themselves, the perceived risk factor involved with booking through certain airlines.

Travellers are asking; “will my airline still be in business next month?”

This is a good question, and Paddy Power think they have an answer:

What are the odds on Easyjet going bust? – Currently 100 to 1, one of the least likely airlines to go under at this time, in the good company of industry heavyweights; BA (100 to 1) and Virgin Atlantic (100 to 1).

What are the odds on Jet2 going bust? – Currently 12 to 1, by no means guaranteed to be the next Alitalia, these odds are considered no more than “mildly concerning” at this time.

Will FlyGlobespan go bust? - Currently residing with doom-impending odds of 2 to 1, FlyGlobespan are still in business as this article is published. Savvy travellers book elsewhere, and ensure insurances are in order.

Is Ryanair in financial difficulty? - No more than any other airline, in fact Low Cost Carriers; Ryanair and Easyjet are among the safest airlines to book with at this time, with Ryanair also enjoying healthy odds of 100 to 1.

Paddy Power consider the airline Alitalia so risky, that they won’t even take bets on it being the next airline to fold! Today, talks continue for an Alitalia rescue bid involving Silvio Berlusconi's officials, Air France-KLM and the CAI consortium.

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  1. Wow! Refreshing to see that someone is being straight with consumers!

  2. This is still accurate in my opinion.