Friday, October 6, 2017

Monarch Airlines bankrupt

Recently, bankrupt of budget airlines (so-called low-cost carriers) occurred in succession.

Monarch Airlines had to cease all of the services due to money short. It made more than 100 thousands of passengers worry about getting home. A total of 300 thousand cancellations occurred. After that, Ryanair was threatened to be sued by the Civil Aviation Authority for persistently misleading passengers.

International Business Times: From Monarch to Ryanair and Air Berlin: Are budget airlines flying into trouble?

Air Berlin also filed for insolvency in this August due to the withdrawn investment of Etihad Airways. In Japan, Skymark Airlines met bankrupt in 2015.

Budget airlines set the fare for boarding at the rate as low as possible. They are struggling to reduce the cost. It leads to the lack of flexibility in accidental situations. Previously, I wrote an example.

My past entry: A particular reason for delay in LCC

As well, they have no surplus cash because most of them are start-up companies. Thus, a small additional expenditure will be enough for them to be bankrupted.

However, airline transportation is now an essential infrastructure. Companies are responsible for the stable offering of transportation. In the case of Monarch, I hardly understand the fact none could prevent such as mass stasis of passengers. The governments and alliances of airline companies have to ensure the sustainability of airline transportation for preventing the chaos, I believe.

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