Irish Transport, Tourism & Sport Minister Leo Varadkar has opened discussions with airlines over abolishing the €3 travel tax, as part of a deal for airlines to re-open airline routes and bring tourists back into the country. Varadkar outlined the plans as part of a drive to make it easier for tourists from rapidly growing economies to visit Ireland.
Varadkar stated: “I believe we are moving into more favourable conditions. Numbers coming through our ports and airports are stabilising and starting to grow again, as is occupancy in our hotels… in some areas in much of Europe and North America there is still uncertainty, and we are still looking at levels of access far below what they were only a couple of years ago.”
It was also announced that Minister Alan Shatter is looking into making the visa regime more attractive to visitors from regions such as South East Asia.
When the going gets really tough it is refreshing to note that a government realises the symbiosis between aviation and inward investment and trade. The UK, among others, should take note as they continue to damage the prospects of aviation and therefore inward investment into their countries.
Meanwhile………….
As mentioned first here on April 6th and 7th the C919 AVIC home engine program is moving up a few gears. Where does this leave the CFM Leap X and indeed, has anyone stopped to think logically about this situation? Does China intend to offer a Leap X type engine and therefore offer no real choice at all or have they somehow managed to develop a GTF type engine design that will offer real choice going forward? Think about that for a few minutes and you will have no end of questions as indeed I do – That is why issue two of Airline Economics will be looking into the C919 very hard indeed and getting to the truth – Don’t miss it.
Two months to Paris and the deals are already done!
The fact is that the 737-800 remains to this day the best option on the market in its class. Even set against the A320neo with PW1000G engines on wing, once purchase cost is taken into account, the 737-800 has the edge through and past 2020. The A320neo is a good option at the right price and those ordering prior to Paris 2011 got that deal, well done to them. Others coming up behind may as well just get their order in now for a 737-800 and be done with it…but hold on – We have the Bombardier C Series entering on stage left, not the same class due to passenger number ability but still able to compete for route planning just the same. Word is from multiple and highly reliable sources, that Bombardier has amassed a number of C-Series orders for announcement at the Paris Air Show in June with decent cost reductions all in the aim of getting the ball rolling. Look for confirmation at the show and then take into account that those airlines have received great deals worthy of note.
Udvar Hazy, mainly due to his fabulous financing team, has been the ultimate exponent of ordering aircraft cheap when manufacturers are looking to get the ball rolling and build momentum in the type and this record highlights the truth of where we currently stand. We have a global fleet, that for many, especially US airlines, must be renewed at speed and we have a number of competing manufacturers looking to kick start their order books. So this Paris Air Show will be looked upon as the show of opportunity with cheap offers for the C Series, the MRJ, the A320neo, anything with a CFM Leap X on it and of course a C919. The C919 remains the exception in this quality crowd, it is both good and cheap and if it does what it says on the brochure then all hail COMAC, but the point here is this – Airlines not taking the plunge within the next few months for a Paris announcement deal should look closely again at the 737-800 running costs Vs price – Strip away the price reductions on offer for launch orders from competitors and all of a sudden the Boeing 737-800 turns out to be the aircraft that remains to this day best in class. The rest are competing on price reductions. So as Boeing try to get in on the action at Paris with the launch of something new many will ask…How much trouble is it to raise the aircraft off of the ground and stick some new engines on the wing? We are in for a very interesting spring/summer. Airline Economics and Aviation News Online, with our industry surveys and in depth focus will be on top of as much as possible.