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AVIATION Draw Down.


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I don’t know John, been a while since I did any work in the airline sector.

You may be right that the debt loading on VA might preclude lending by a bank or it might be they are unable to syndicate lending amongst multiple banks or just that the sector is a bit toxic, especially given the growth of the likes of Extinction Rebellion.

BA have benefitted massively from the state over the years.

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26 minutes ago, grrclark said:

or just that the sector is a bit toxic, especially given the growth of the likes of Extinction Rebellion.

That is certainly true - and may be the reason.  In addition, I think quite a lot of businesses who haven't traditionally used video conferencing have now 'discovered it' and found it is cheap and works quite well.  I think that this present 'crisis' will be a bit of a watershed in many ways - and some things, which would include aviation may not have an easy time afterwards.

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13 hours ago, AVB said:

Who in their right mind would want to holiday in the UK! It's overpriced, service is ****, people are generally ungrateful and weather is normally pants as well. Happy to see fewer cheap flights around though, especially if it stops the great unwashed from travelling and cluttering up decent places abroad. Nothing worse than arriving at an airport and seeing a flight from Liverpool or Manchester arrive! In fact close regional airports south of East Midlands, and leave one in Scotland.  Actually close Luton and Stansted as well as they only survive on low cost airlines. 😂    

Nothing beats England on a sunny summers day all you get abroad is to hot to go out in and its full of foreigners 😂

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3 hours ago, The Heron said:

Nothing beats England on a sunny summers day all you get abroad is to hot to go out in and its full of foreigners 😂

How often do you get a ‘nice’ sunny day though in the UK?  When it is hot it gets too hot and humid and with lack of A/C around gets stifling. That said, this April was nice. 

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4 hours ago, AVB said:

How often do you get a ‘nice’ sunny day though in the UK?  When it is hot it gets too hot and humid and with lack of A/C around gets stifling. That said, this April was nice. 

One of the best holidays we had was a wet week in Wales, did loads we wouldn't have done had we been in the sun in Spain, I won't miss the Airport at all this year.

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1 minute ago, Grandalf said:

I am very worried about this crisis in the airline industry.   One of them pays my pension...

 

Wont be much consolation to you, but you will be in plenty of company.

 I can see all our pensions being effected massively by all this, how can it do any other its bound to have an effect if not take some out completely.

If people do a rush on funds drawing, it will be terminal.

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The financial world is walking away from the airlines as fast as it can without making it any more obvious than it has to.

The feeling is at least 50% will go bust (or are already) and volumes will take years to recover.

Cheap holiday flights and package holidays will not be around when the lockdown lifts.

Think of the financial impact on many of the destinations

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1 hour ago, Vince Green said:

The financial world is walking away from the airlines as fast as it can without making it any more obvious than it has to.

The feeling is at least 50% will go bust (or are already) and volumes will take years to recover.

Cheap holiday flights and package holidays will not be around when the lockdown lifts.

Think of the financial impact on many of the destinations

It certainly looks like the aviation bubble has burst. And as you suggest the knock on effect will be massive, I can think of several places I've visited in the recent past which, as a city / town / community, are facing an existential threat.

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10 minutes ago, Raja Clavata said:

It certainly looks like the aviation bubble has burst.

In a number of respects, it has been on 'borrowed time' in recent years. 

The various threats over the years from terrorism, hijacking etc. which have been mainly quite well contained have been joined by the 'eco warriors' who have used different disruptive tactics (drones (allegedly), blocking ground traffic etc.) for different reasons that have had at least (some) public sympathy.  This despite some so called 'celebs' apparently flying 1st class across the Atlantic to join protests against flying!

The massive rate of growth could not be sustained much longer.  50 years ago - when I was young, only the 'wealthy' and those (usually only senior staff) travelling on business were able to fly, and 'foreign' holidays were for most who could afford them a 'once a year' special event.

Now quite large numbers of people fly several times a year for family holidays, skiing trips, weekend breaks, stag/hen parties etc.  Apart from the 'carbon' implications, this huge and rapid number of people movements has always been a 'risk' for spreading infections.

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Agreed. I think it's an opportunity for growth in the executive / small aircraft aviation sector. There will also be massive focus on innovation around high speed personal transportation system but it's difficult to see how the economics of that can work, who knows.

So yes, a reset which potential for growth over time in the commercial sector - interesting one to watch, terrible one to be living through with your livelihood and pension at stake 😞 

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I think it’s going to go either way on the holidays front. It may be that after all this is over people will want that holiday they have missed out on. From what I have heard 2021 holiday bookings are looking strong already. Business travel especially regional (FlyBe) I would say has now gone.

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26 minutes ago, Raja Clavata said:

It certainly looks like the aviation bubble has burst. And as you suggest the knock on effect will be massive, I can think of several places I've visited in the recent past which, as a city / town / community, are facing an existential threat.

Yes just think of Florida, you don't have to look any further than that.

Now this is in the category of strange but true, a message on facebook today from a couple we have known for years but rarely see. They are flying off today on holiday to Turkey. I couldn't believe it when I saw it this morning.

There message was along the lines "can't stand it anymore, off to the sun and freedom" and NO they are not joking. I know exactly where they are going

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7 minutes ago, Vince Green said:

Yes just think of Florida, you don't have to look any further than that.

Now this is in the category of strange but true, a message on facebook today from a couple we have known for years but rarely see. They are flying off today on holiday to Turkey. I couldn't believe it when I saw it this morning.

There message was along the lines "can't stand it anymore, off to the sun and freedom" and NO they are not joking. I know exactly where they are going

Have they grown wings? I'm amazed there is a flight out and back?

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5 minutes ago, JTaylor91 said:

I think it’s going to go either way on the holidays front. It may be that after all this is over people will want that holiday they have missed out on. From what I have heard 2021 holiday bookings are looking strong already. Business travel especially regional (FlyBe) I would say has now gone.

Flybe was great, I could fly up from Cornwall to London in 55 mins and it wasn't expensive. The planes were never more than half full though and I could never understand why but I think it was because they offered a hand luggage only deal. If you wanted to take anything more they crucified you on price.

4 minutes ago, Mice! said:

Have they grown wings? I'm amazed there is a flight out and back?

I was amazed too

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