Aer Lingus eyes accelerated growth
Despite strong competition from Ryanair, Aer Lingus has hardly been a failing airline. It has registered decent profits using a niche strategy. But following last year’s takeover by IAG and with new-technology aircraft soon available, the airline sees much greater growth potential, particularly on transatlantic routes. “We had a robust, independent business case,” CE Stephen Kavanagh says. “But we would not have been able to grow as fast. We would have been successful but smaller.” Now the company is looking at accelerated growth. In Q3 of 2015, traffic grew 11.7% on an 8.9% capacity increase. Unit revenues were up 3.7% as unit costs were essentially flat. The airline targets an average annual capacity increase of 7.7% until 2020 at an operating margin of more than 10%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-02-04/unaligned/aer-lingus-eyes-accelerated-growth
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Aer Lingus eyes accelerated growth
Despite strong competition from Ryanair, Aer Lingus has hardly been a failing airline. It has registered decent profits using a niche strategy. But following last year’s takeover by IAG and with new-technology aircraft soon available, the airline sees much greater growth potential, particularly on transatlantic routes. “We had a robust, independent business case,” CE Stephen Kavanagh says. “But we would not have been able to grow as fast. We would have been successful but smaller.” Now the company is looking at accelerated growth. In Q3 of 2015, traffic grew 11.7% on an 8.9% capacity increase. Unit revenues were up 3.7% as unit costs were essentially flat. The airline targets an average annual capacity increase of 7.7% until 2020 at an operating margin of more than 10%. <br/>
