Air Berlin yields continue to perform well

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Air Berlin Group passenger RASK (% change year-on-year): Apr-2008 to Apr-2009

Source: Centre for Asia Pacific Aviation

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  This is the year of Europe’s legacy carriers finally addressing their unsustainably unprofitable short-haul networks, and the answers so far have primarily been to strip costs out of existing models to make the carriers competitive against low-cost rivals. But Finnair’s decision to outsource its short-haul flying to a joint-venture partner suggests hybrid models can only achieve so much savings, while the structure of legacy carriers has inherent higher costs that cannot be taken out. Starting afresh becomes another, better, solution.

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