O’Leary says high fuel costs will bankrupt smaller airlines
27.07.11
Oil prices above $110 a barrel could force small regional European airlines to go bankrupt this winter, Michael O'Leary, the chief executive of Ryanair, said yesterday. He also predicted consolidation in the airline industry, but ruled out any interest by Ryanair in making acquisitions.
Mr O'Leary told reporters in Rome, where the airline announced plans for seven new routes from the city's Ciampino airport: ‘I do think there will be further consolidation and further bankruptcies this winter if oil remains up at around over $110 a barrel. There is undoubtedly a second or third tier of small, regional and not so low-fare airlines in Europe, particularly in Spain and central Europe and some in the UK, that will go bust this winter if oil remains above $110 a barrel.’
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