| Journal: TWUK | Section: |
| Title: | Issue Date: 26/06/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
Industry asked to reveal true capacity
A LEADING City analyst has appealed to operators to come clean over capacity after claiming they have failed to be upfront with investors.Warburg Dillon Read analyst Julian Easthope said ending the secrecy will forge better working relationships with the City.
Speaking at the Institute of Travel and Tourism conference in Las Vegas, Easthope said: “What needs to happen is for operators to provide a better understanding about how much capacity they have put on. They need to be more honest and open.”
He said only by adopting this new approach will the City be able to accurately judge the performance of each company and end the traditionally volatile nature of the industry.
Easthope gave delegates an example, saying the City may think an operator is working on margins of 5% when in fact it has put on extra capacity and is working on 2%-3%.
He said the City values companies on sentiment as well as performance but added that Airtours’ capacity hike for summer 2000 is killing this feeling.