How does the economic crisis affect aviation? jobs,routes,..

LX-LGX · Post by **LX-LGX** » 11 Jul 2009, 11:49

Good news : oil prices were above 72 USD two weeks ago, but they've closed just below 60 USD on Friday:

Nymex Crude Future 59.89
Dated Brent Spot 59.40
WTI Cushing Spot 59.89
Source: http://www.bloomberg.com/energy/

OPEC basket closed at 60.58 on Thursday
Source: http://www.opec.org/home/

Boeing767copilot · Post by **Boeing767copilot** » 24 Jul 2009, 18:42

OpenSkies (BA) has decided to suspend its service between Amsterdam and New York beginning August 16, 2009 .

airazurxtror · Post by **airazurxtror** » 26 Jul 2009, 17:07

Openskies now fly only Paris - New York, and BA try to find somebody willing to buy it.
At the beginning, OpenSkies was planning to fly on Brussels-New York. Seems less and less likely ...

willem · Post by **willem** » 26 Jul 2009, 20:38

correction... BA wants to sell 25%, and keep control over the company.

RoMax · Post by **RoMax** » 27 Jul 2009, 19:47

With selling 25% they get new money.

Boeing767copilot · Post by **Boeing767copilot** » 03 Sep 2009, 14:05

easyJet announces network redeployments: East Midlands to close and Luton to be reduced by 20%easyJet today announced proposals to reduce its flying programme at Luton by 20% and to close its East Midlands base. The airline will move this capacity to more profitable airports and expects that most of the aircraft will be redeployed to continental European bases. easyJet is committed to developing Europe’s premier short haul network and its overall growth plans remain unchanged at around 7.5% per year over the medium term. The proposals to reduce flying at Luton are a function of the airport’s failure to recognise the commercial realities of the recession and that easyJet has opportunities to move capacity to more attractive locations elsewhere in its network as weaker competitors retrench in today’s tough climate.
Airport costs at Luton have risen by 25% over the past three years which makes the base no longer competitive. easyJet has been in protracted negotiation with Abertis, the Spanish operator of Luton and its owner Luton Borough Council, which is understood to receive over half of the airport charges. These negotiations have broken down leaving easyJet no alternative but to reallocate parts of its flying programme.
easyJet’s base at East Midlands has remained stagnant with 3 aircraft for many years and easyJet will focus its assets on higher priority markets. easyJet has therefore opened a formal 90 day consultation with its crew at Luton and East Midlands.

badabing2 · Post by **badabing2** » 07 Sep 2009, 10:12

Nick Manoudakis, Chief Financial Officer of SkyEurope, commented, “We have a
convincing business plan that has been independently reviewed by Ernst & Young and potential investors. With this reorganisation, we are confident that we can secure further investment that will support our business plan and future growth. Together with our already proven low cost base, these measures will deliver a financial turnaround of SkyEurope. We provide an important service of good value flights to and from Central Europe, and our customers, employees, suppliers and business partners will all benefit from a stronger SkyEurope.”

We all know how that ended.
Just to show : good intentions, a good business plan and able management are not enough to make it through this crisis. You need strong shoulders, and a strong wallet.

LX-LGX · Post by **LX-LGX** » 14 Sep 2009, 11:30

Not only aviation is suffering from the economical crisis:

Eurostar (railways) : passengers minus 6 % for the first 6 months 2009, compared to the same period 2008. Comparison for the last 6 months 2009 will be irrelevant because of the fire in the Tunnel, end 2008.

One afternoon train between Brussels and London (both directions) will be cancelled as from mid Dec 2009.

(source: De Tijd)

-SCQ- · Post by **-SCQ-** » 17 Sep 2009, 21:45

Air Comet could definitely go bankrupt in the coming days/weeks ...

LX-LGX · Post by **LX-LGX** » 20 Sep 2009, 19:48

Also job cuts at Lufthansa, says the German Handelsblatt in its printed edition from Monday 21 Sept 2009: from now till 2012, some 15% jobs will be cut.

http://www.handelsblatt.com/unternehmen ... mm;2458869

Post by **sn26567** » 21 Sep 2009, 11:36

LX-LGX wrote:Also job cuts at Lufthansa, says the German Handelsblatt in its printed edition from Monday 21 Sept 2009: from now till 2012, some 15% jobs will be cut.

According to Trends/Tendances, the cuts will not affect Brussels Airlines.

French: http://www.trends.be/fr/economie/entrep ... e-15-.html
Dutch: http://www.trends.be/nl/economie/bedrij ... -jobs.html

Acid-drop · Post by **Acid-drop** » 21 Sep 2009, 15:27

LX-LGX wrote:Not only aviation is suffering from the economical crisis:

Eurostar (railways) : passengers minus 6 % for the first 6 months 2009, compared to the same period 2008.

You call this suffering from the "crisis" ?
6% decrease is nothing ...

LX-LGX · Post by **LX-LGX** » 21 Sep 2009, 23:55

Acid-drop wrote:
LX-LGX wrote:Not only aviation is suffering from the economical crisis:

Eurostar (railways) : passengers minus 6 % for the first 6 months 2009, compared to the same period 2008.
You call this suffering from the "crisis" ?
6% decrease is nothing ...

It seems your knowledge about the travel trade, aviation trade and transportation trade is limited to LGG and CRL only. There is a real world out there, and for touring cars, airlines and railway companies, 6 % less passengers is huge because it is also 6% less benefit. Eurostar has to run anyway, also with 6% less pax.

expected : train 500 pax at 100 euro means gross revenue 50.000 euro
less 6%: train 470 pax at 100 euro means gross revenue 47.000 euro

So make a calculation: 14 Eurostars a day, each at 3.000 euro less revenue then expected.

Acid-drop · Post by **Acid-drop** » 22 Sep 2009, 09:09

I'm interested to talk only about limited stuff, doesn't mean i'm not interested to read the rest

(and it's always more interesting to talk about good news, thus limiting the talk to those 2 airports

)
6% still look like a very small decrease to me ... especially because the level of 2008 was an artifical "bubble" level.

tolipanebas · Post by **tolipanebas** » 22 Sep 2009, 09:20

Acid-drop wrote:I'm interested to talk only about limited stuff, doesn't mean i'm not interested to read the rest
6% still look like a very small decrease to me ... especially because the level of 2008 was an artifical "bubble" level.

My friend, the travel industry is the industry known for having the smallest margins, combined with having the highest percentage share of invariable costs of any sector of our economy.
It's the combination of these 2 which makes it such a diffucult industry to operate profitably in...

As LX said, the operating costs of any travel company (be it an airline, or a railway link) on a route are basically independent of the number of customers transported. Given the fact operating margins are in the low single digit percentage points when all goes well (due to the increadibly strong competition, known in no other sector but the telecom maybe), even a drop of 'just' a few percentages in pax numbers immediately wipes away the ENTIRE profit.

As a rule of thumb:
a 5% drop in load and it wipes away any small profit you'd planned on making
a 10% drop in load and you're seriously starting to loose money
a 15% (or more) drop and you better halt the route before it costs you a leg, unles you have very deep pockets...

Cutting a fequency is a much used method to try to reduce the operating costs of a route...

Propwash · Post by **Propwash** » 21 Dec 2009, 09:57

Dubai posts record passenger, cargo growth (Trade Arabia)

Qantas tips profit of $50m-$150m (news.com.au)

Qantas reinstates slashed flights (Radio Australia News)

regi · Post by **regi** » 21 Dec 2009, 10:50

well, that is positive news !

Propwash · Post by **Propwash** » 22 Dec 2009, 06:47

Also 'some' sign of improvement in the West

Logan International Airport [BOS] expects as much as a 30 percent jump in holiday passenger traffic this year (Boston Herald)

Propwash · Post by **Propwash** » 24 Dec 2009, 12:31

Indian airlines to return to profit (The Economic Times)

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