SN BA boss expects only small loss for 2003

Avro · Post by **Avro** » 28 Sep 2003, 21:35

Since it is no use to post comments in the latest news section I'll start a topic.

For the news check: https://www.aviation24.be/article1547.html

I still hope SNBA will make a small profit this year, which would be much better than making a small loss

But apparently it won't be like that

Anyway, I think it would ba a great idea if SNBA signs a codeshare agreement with a partner in Asia, I would go for Thai

What do you guys (and girls

) think about this news

Let's cross our fingers, and hope the very best for SNBA

Regards
Chris
8)

Flybe · Post by **Flybe** » 28 Sep 2003, 22:03

Hmm, a profit over the whole year would indeed have been a little bit too much to ask for in my eyes. I mean, judged by the quantity of the loss in the first quarter and the quantity of the profit in the second quarter.

But then again, i don't know what the amount of the profit of the third quarter will be, although i don't expect it so stunningly high. But i could be wrong of course. Also i guess (but that's just my personal opinion) that the last quarter will be again a difficult one. If SNBA doesn't make a further loss there, i would already accept that as a good result. Then we can look upon the next year with faith in a profit over the whole year.

For this year (and it is just my opinion, i don't have any information to fund it, just my knowledge as a student in the last year of economics) i think it would be positive if they can contain the loss between 10 millions € and a break even. This judging from the numbers i read in the newspaper/online. But even that won't be so easy to obtain, because then you require a substantial profit in the last quarter, which isn't really the easiest one.

Take this reasoning for what it is, just a personal statement

Bye,

Pieter

ATC · Post by **ATC** » 28 Sep 2003, 22:10

I still hope SNBA will make a small profit this year, which would be much better than making a small loss But apparently it won't be like that

Indeed the first months were very bad for SNBA. But I believe the future looks bright. We must think positive :dance: , if SNBA can hold or increase these loadfactors (nearly 70%) and could expand it network I believe 2004 will be a fantastic year.

I think it would ba a great idea if SNBA signs a codeshare agreement with a partner in Asia

I agree. The Asian market is still the missing link in the network. If SNBA can find a good partner (like AA for their american network) this would allmost complete the circle.

I would also go for Thai.

Let's cross our fingers, and hope the very best for SNBA

greetz,
ATC

Post by **Apuneger** » 28 Sep 2003, 23:14

If SNBA would be looking for a good partner in Asia, I think it would be best for them to start negotiations with Cathay Pacific. Why? Well, I'm not aware of the financial position of Cathay, but like American, Iberia and BA, they're part of the OneWorld Alliance. And they already have cargo flights (Air Hong Kong) to BRU.

I know, Rob Kuijpers already stated that he doesn't want SN BA to join an alliance because it narrows the potential for partners, but if should they ever want to join one, it would be best to look for partners of one and the same alliance, don't you think?

Ivan

Albatros · Post by **Albatros** » 28 Sep 2003, 23:34

I agree. The Asian market is still the missing link in the network. If SNBA can find a good partner (like AA for their american network) this would allmost complete the circle. I would also go for Thai.

ATC, do you have a special reason to select Thai - a Star Alliance member - as a partner for SNBA? Should Cathay Pacific be an option? This airline already join the join the oneworld alliance together with American Airlines, the other partner of SNBA. On the other hand, Cathay already has Paris, Frankfurt, London and Amsterdam, the 'big-4 around Brussels, as direct destinations, while Thai 'only' connects Franfurt, Paris and London.

Greetings

Albatros

Post by **sn26567** » 29 Sep 2003, 09:05

Two remarks:

1) If the fourth quarter goes the same way as the two previous ones, the loss could be limited to less tan 10 million €. That would be great, but not enough. Profits are needed urgently to save SN Airholding, the main shareholder of SN BA, which needs that money to reimburse a loan to te Belgian State.

2) Doesn't SN BA already have enough codeshares? Thirteen (13) until now! It is about time to open its own routes. And if a codeshare is needed to Asia, let it be with a oneworld company (like it was already the case AA, BA, IB, Finnair). You have named it before, so I won't repeat the name. SN BA seems to be irreversibly engaged to oneworld.

Avro · Post by **Avro** » 29 Sep 2003, 11:50

I agree with you André, SNBA should start flights to Asia in codeshare with someone. But this has to happen with SN's planes. It would be much better.

Ciao
Chris
8)

Comet · Post by **Comet** » 29 Sep 2003, 12:01

Avro wrote:I agree with you André, SNBA should start flights to Asia in codeshare with someone. But this has to happen with SN's planes. It would be much better.

Ciao
Chris
8)

I agree with you Chris, it would be better for SNBA to use their own aircraft (more seats for them would equal more money).

I'm not a fan of code sharing, I would prefer SN Brussels to do the flying wher possible.

Flybe · Post by **Flybe** » 29 Sep 2003, 13:19

Profits are needed urgently to save SN Airholding, the main shareholder of SN BA, which needs that money to reimburse a loan to te Belgian State.

I think that the most likely thing to happen is that when the loan to the belgian state ends (2006 if i'm not mistaking), that the loan will (partially) be taken over by private investors (read: banks). If SNBA starts to make a profit from next year on, then they can pay back at least a part of the loan, and they give the signal to potential private investors that they are a sound company who will be able to pay back those loans in the future. So what is left of the loan can then more easily be picked up by banks.

I agree with you Chris, it would be better for SNBA to use their own aircraft (more seats for them would equal more money).

But also the costs

Also the codesharing to Asia you should see in the light of making profit, i guess. Flying with your own planes normally makes the costs go skyhigh. This in the Asiatic market that just comes out of a slowdown (SARS), and with still much capacity to fill. Also as an airline being new on that route, you don't get immediately full planes. So to start with a codeshare is a good thing, i think. You keep controlling your costs (read: profits) and later you can still decide to end the codeshare or maybe just try to change it in the way that SNBA flies that route and the other company has codeshare seats on it.

So indeed, profit is very important for the next years, and i guess that codesharing is also the way to contain the costs. I think that SNBA management isn't doing that bad for now (just my humble opinion of course, and i'm not an insider or anything like that

)

Bye,

Pieter

ATC · Post by **ATC** » 29 Sep 2003, 21:30

ATC, do you have a special reason to select Thai - a Star Alliance member - as a partner for SNBA? Should Cathay Pacific be an option? This airline already join the join the oneworld alliance together with American Airlines, the other partner of SNBA.

I haven't got a special reason for it, but I think Thai is a asian airline with a good grow potential. I also think that for the moment, it won't be bad if SNBA gets a codeshare agreement with a Star Alliance member. You never now what the future brings ?

I must admit

that if SNBA should ever joined in a alliance, they should choose for the oneworld alliance . But like a said before, we'll see what the future brings... ?

greetz,
ATC