Bloomberg
• Kate Duffy
Ryanair CEO Michael O’Leary says European airfares could rise by as much as 20% over the next 12 months, calling it the biggest increase in history. Higher jet fuel costs and airlines’ limited hedging could push carriers to raise fares and cut capacity as contracts expire; O’Leary also cites airline bankruptcies and takeovers as factors reducing available seats.
Aircraft Demand: Airline Distress & Consolidation
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Ryanair CEO Michael O’Leary says European airfares could rise by as much as 20% over the next 12 months, calling it the biggest increase in history. Higher jet fuel costs and airlines’ limited hedging could push carriers to raise fares and cut capacity as contracts expire; O’Leary also cites airline bankruptcies and takeovers as factors reducing available seats.
GAMair, based at Melbourne Essendon, has sold its remaining Do 228-200s, ending 21 years of operating the type. The Australian operator announced the fleet’s retirement in a social media post; the available report does not identify the aircraft’s buyer or GAMair’s replacement plans.
Bamboo Airways is facing a sale of collateral valued at $139 million, according to the article headline. The available report provides no further detail on the assets, creditor or timing.
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Icelandair has completed its acquisition of a 49% stake in Fly Play Europe Holdco after meeting all conditions of the deal announced Aug. 20. The Maltese company’s subsidiary holds an air operator certificate; the business was formerly part of the now-insolvent Icelandic low-cost carrier PLAY.
Wizz Air is in talks with airports across Europe about taking over slots held by airlines at risk of bankruptcy, chief corporate officer Owain Jones told Reuters. The low-cost carrier is seeking expansion opportunities as financial pressure mounts across the airline sector.
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Wander admitted to a scheme to defraud lenders and investors, with prosecutors alleging 777 Partners used bogus collateral and doctored bank records to obtain financing. The firm backed Canada’s Flair Airlines and Australia’s failed Bonza, and prosecutors linked borrowed funds to deposits on Boeing aircraft for the carriers.
Portugal has revoked OMNI Aviação’s AOC after the airline became insolvent. The move removes its authorization to operate and marks a regulatory consequence of the company’s financial failure; the available report provides no further detail on the timing or effects on its fleet and services.
CityJet has closed its Stockholm base and is weighing what comes next for its fleet. The available information does not specify the timing, aircraft affected or whether the base closure changes the carrier’s routes or operating arrangements.
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