Aer Lingus Group PlcDublin, Ireland

Tools:

Buy A ReportBecome A Subscriber

Today's Special Offer

Aer Lingus Competition

Now Viewing Aer Lingus's competition in: Airlines (primary)

Recent Developments

Another Step Forward for Alternative Fuels - Continental Airlines is taking a major step toward alternative fuels by committing to a flight in 2009 that will use renewable fuel. The flight, the result of a coalition involving engine producer GE Aviation, aircraft maker Boeing, and Continental, will be the first alternative fuel flight by a US carrier, but not the first internationally for Boeing. Several airline industry experts predict more alternative fuel use in coming years as the industry tries to lower overall carbon emissions.

Jet Fuel Costs Ripple Through Industry - Nearly all major US carriers have been forced to respond in some way to higher fuel costs resulting from record high oil prices. Delta, United, JetBlue, and others have announced cut backs in the number of jets they'll fly as of 2009; Continental is replacing its older planes with newer, more fuel efficient models. In early March 2008, American, Delta, Continental, and US Airways raised ticket prices to help offset fuel prices.

Pricier, Lighter Seats All the Rage - Airlines are continually pressured to save money, and one way is through fuel cost savings, often achieved by less weight. Increasingly, airlines are looking to seat designers to save weight, a periodic trend that's gaining acceptance once again. The primary movement is in high-end seating areas, such as business or first class, with innovations that include seats that lie back completely. Industry experts contend that lighter and more comfortable coach class seats aren't far behind, as reducing weight in the cabin results in significant fuel cost savings.

Competitive Landscape

Airlines depend highly on the health of the US economy, which affects air travel by business and consumer passengers. Because many costs are fixed, the profitability of individual companies is determined by efficient operations and on favorable fuel and labor costs. Small airlines can compete by servicing local or regional routes. The industry is highly capital-intensive: average annual revenue per employee is about $200,000.

Airlines Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for US airlines are forecast to grow at an annual compounded rate of 6.8 percent between 2007 and 2012.

Consumer Spending on Airline Travel Growth Spikes then Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Large business travel segment
  • Require effective marketing
  • Risk: Slowing economy cuts business travel

Industries Where Aer Lingus Competes

  • Transportation Services
    • Airlines (primary)
    • Air Cargo Services

Trading Toolbox