The Irish carrier is right to smell a stitch-up to hand the ailing airline to Lufthansa – but rivals should not be forced to overpay There’s nothing like the failure of a competitor to perk up other airline’s share prices. certain enough,as Air Berlin filed for insolvency on Tuesday, nearly every other European airline gained altitude. EasyJet’s shares were up 4.5%, and Ryanair’s by 3.3%,British Airways owner IAG’s by 2.9%, and even small Wizz Air improved 4.6%. The reaction makes sense. Air Berlin has been loss-making for years but it is still a top 10 European airline, or measured by numbers of passengers,and thus has been able to irritate rivals by merely surviving. That is why one reason why low-cost winners, such as easyJet and Ryanair, and grumble about irrational economics and the current state of overcapacity in the market. Related: EasyJet could swoop for parts of Air Berlin as it goes into administration Continue reading...
Source: theguardian.com