Korongo Airlines: THE END

[Bralo20]

Flanker,

Always nice to see the most optimistic you on this board, I wondered what kept you so long?

[bruteboeing]

Good news indeed.

However...

-B737, RJ85 phase-out maintenance costs (my estimate 10 million)
-A319/A320/A330 phase-in costs (my estimate 5 million)
-A330 refurbishment 25 million
-NYC start-up loss and investments (my estimate minimum 5 million)
-Korongo re-investment and start-up loss (my estimate minimum 10 million)
-Euro is -10%, potentially going lower, fuel is unchanged, 30 million deeper loss
-ETS, 15 million
-Industrial actions and miscellaneous issues, 5 million

Other potential losses, my estimates:
-Winter operations, up to 5 million (part of which has been spent in the past weeks)
-Africa yields under pressure due to re-start of Afriqiyah, TK joining the market. 5 to 10 million, but could be much much more.
-Europe under pressure, LCC competition, BUD is a lost cause, partner Spanair tits-up, Blue 1 is gone so no more feeding from HEL, Air Berlin looming.
Yields under pressure due to overcapacity, too large aircraft in a deepening recession
(An RJ85 with 50 pax is cheaper to run than a A319 with 50 pax.) Up to 20 million.

Almost all of this is versus last year's loss.
Do the math...

I repeat my prediction, it's going to be tough for SN to survive the next winter.

-B737, RJ85 phase-out maintenance costs (my estimate 10 million) if it was only that ... )

[Flanker]

-B737, RJ85 phase-out maintenance costs (my estimate 10 million) if it was only that ... )

It should be a pretty good guestimate at 1 million dollars each for heavy C-checks done in Eastern Europe or buy-outs, depending on the contract provisions. ( 10 RJ85 + 4 B737's)
It could be more indeed, but I don't think much much more as the RJ85 has an average market value of only 3 million (2-4M) $ with engines. The 737's can cost more, up to over 2M$ per c-check with engine OH's.

You are right that if they really retire all RJ85's and B737's and charges are all booked this year, it can easily cost anywhere between 15-20M euro (25M$).

Like Bralo20 said, I tend to be slightly optimistic on the above numbers and I prefer to be so in light of expectable criticism...

[Passenger]

Information from Nowmedia.co.za, the leading South African travel trade news site:

Korongo Airlines, a new regional airline based in the Democratic Republic of Congo, plans to launch flights to Johannesburg within the next few months.

Brussels Airlines, in co-operation with George Forrest International and other Congolese private investors, will manage the airline, initially offering services between Lubumbashi and Kinshasa as well as Lubumbashi and Johannesburg. Soon thereafter, Mbuji Maji and Kolwezi are expected to be added to the network from Lubumbashi.

Christophe Allard, Korongo Airlines CEO, said the airline would be communicating with the South African trade in the coming weeks, providing more detailed information on the product, its launch date and GSA partner in South Africa, along with the launch of the airline’s website.

“The initial routes will be operated by B737 aircraft, under an ACMI agreement with Brussels Airlines (IOSA certified), featuring a two-class configuration, including a true C-class product,” Allard said.

[brusselsairlinesfan]

Why no official confirmation from all the parties involved in KORONGO?

[Inquirer]

Why no official confirmation from all the parties involved in KORONGO?

Exactly what do you want to see them do at present?

As interested as you may be in this airline, there isn't a whole lot of news to tell at present other than that a final go has been given. They will likely communicate when they have firm dates and schedules in place....

Give them a few more weeks, we will see then; isn't waiting for more detail half the fun? Meanwhile why dont you discuss possible routes and schedules?

[RoMax]

Meanwhile why dont you discuss possible routes and schedules?

Because the routes are already known? With the most important, and first routes: from Lubumbashi to Kinshasa daily (connecting to the SN flights) and Lubumbashi to Johanesburg also daily. Mbuji Maji and Kolwezi are to be added a bit later, but not daily I tought.

Later more destinations in the area may be launched (depending on the succes of the first routes and the permissions that are granted to Korongo I suppose). So more DRC routes and regional routes, possibly routes to offer more connections to the SN network.

[Inquirer]

Can they do a daily flight to Kinshasa as well as Johannesburg with a single 737?
I guess one of the two will have to be a night flight then? Probably the flight to south Africa, as they'd want the flight to Kinshasa to arrive in the capital in the afternoon to connect with the SN flight?
And what about those other routes? Anybody an idea? With just 2 planes, just how much room is there still in the schedule?

[RoMax]

Can they do a daily flight to Kinshasa as well as Johannesburg with a single 737?
I guess one of the two will have to be a night flight then? Probably the flight to south Africa, as they'd want the flight to Kinshasa to arrive in the capital in the afternoon to connect with the SN flight?
And what about those other routes? Anybody an idea? With just 2 planes, just how much room is there still in the schedule?

I suppose daily FBM-FIH (daytime flight), daily FBM-JNB (nightflight) both with 737. And Mbuji Maji and Kolwezi with the BAe, but I don't know the frequency to these destinations so it's difficult to say how they'll arrange that.

[CTBke]

With just 2 planes, just how much room is there still in the schedule?

3 planes will fly for Korongo

OO-MJE BAe 146-200
OO-DJJ BAe 146-200
OO-LTM (737-300)

[RoMax]

3 planes will fly for Korongo

OO-MJE BAe 146-200
OO-DJJ BAe 146-200
OO-LTM (737-300)

One of the BAe's will stay in BRU in the beginning period.

[brusselsairlinesfan]

Why no official confirmation from all the parties involved in KORONGO?

Exactly what do you want to see them do at present?

As interested as you may be in this airline, there isn't a whole lot of news to tell at present other than that a final go has been given. They will likely communicate when they have firm dates and schedules in place....

Give them a few more weeks, we will see then; isn't waiting for more detail half the fun? Meanwhile why dont you discuss possible routes and schedules?

As the take-off of Korongo took a long time facing lots of difficulties, I must admit that I would be reassured to see an official statement & press release...

[Passenger]

Why no official confirmation from all the parties involved in KORONGO?

Exactly what do you want to see them do at present?

As interested as you may be in this airline, there isn't a whole lot of news to tell at present other than that a final go has been given. They will likely communicate when they have firm dates and schedules in place....

Give them a few more weeks, we will see then; isn't waiting for more detail half the fun? Meanwhile why dont you discuss possible routes and schedules?

As the take-off of Korongo took a long time facing lots of difficulties, I must admit that I would be reassured to see an official statement & press release...

Have you really not seen any press reports about the confirmation? Then it's time to change your news sources (I've seen three press reports the last week).

It's also quite common that a press release is only put online if it has relevant information (quid non) and only some days after it has been distributed to the press. Which has been done. So if for one or other reason you need "an official statement & press release", I suggest you identify yourself with Brussels Airlines' press desk as a journalist, and I'm sure you will get your official press release immediately.

[sn26567]

So if for one or other reason you need "an official statement & press release", I suggest you identify yourself with Brussels Airlines' press desk as a journalist, and I'm sure you will get your official press release immediately.

Brussels Airlines will not confirm anything now and will suggest to wait for an official announcement.

What has appeared in the press until now is based on rumours from "well-informed sources".

[brusselsairlinesfan]

It seems that my need for an official statement & press releases are criticized...

No offense for my part... but as a true brussels airlines fan, I just can't wait for this project becoming concrete...

[sn26567]

It seems that my need for an official statement & press releases are criticized...

No criticism at all. It's just that a news becomes official only after the airline has officially announced it. That can be through a press release and/or press conference (most often) or through any other means (radio or TV interview, written publication, etc.).

No official statement has been made about Korongo, hence let's wait...

[tolipanebas]

Information from Nowmedia.co.za, the leading South African travel trade news site:

Christophe Allard, Korongo Airlines CEO, said the airline would be communicating with the South African trade in the coming weeks, providing more detailed information on the product, its launch date and GSA partner in South Africa, along with the launch of the airline’s website.

“The initial routes will be operated by B737 aircraft, under an ACMI agreement with Brussels Airlines (IOSA certified), featuring a two-class configuration, including a true C-class product,” Allard said.

So in fact, there you have an official statement from the CEO of Korongo Airlines.

As to a Press Release from Brussels Airlines: remember that technically speaking Korongo Airlines is a Joint Venture between local investors from the RDC and SN Airholding, with SN simply involved as partner through a wetlease agreement. As such, it's really not up to Brussels Airlines to announce the launch in the first place, but rather up to Korongo Airlines or its shareholders really. SN may then continue on that news from their own perspective (i.e. with more of a focus on the commercial partnership as well as the wetlease deal). At least that would be the correct way to do it, IMHO.

BTW, has anybody noticed the incredible high number of hits this topic has gathered?
More than 100,000! Surely that must be a record for this site?

[kookongsi]

BTW, has anybody noticed the incredible high number of hits this topic has gathered?
More than 100,000! Surely that must be a record for this site?

Look at the "Replacement of 737 and Avro" topic...

[luchtzak]

http://www.demorgen.be/dm/nl/996/Econom ... gaan.dhtml

[brusselsairlinesfan]

http://www.demorgen.be/dm/nl/996/Econom ... gaan.dhtml

Thanks... here we are! Now also in the belgian french speaking press :

http://www.dhnet.be/infos/belgique/arti ... congo.html

I am really happy to see KORONGO preparing for real take-off!