The Brussels Airlines press conference of 30 January 2014

[Inquirer]

Thank you Andre!

So do I get it right that they are announcing a total of 11 new destinations then, because your posting on the bunch of new routes is a little bit confusing to me, probably because you just wrote them down as the routes were presented?

Also, since it has been a hot topic on this forum: any news about their financial performance last year, as well as some guidance on the financing of this very significant expansion plan?

[crew1990]

it s nice that they increase the flights to madrid, when air europa annouce the new route i through sn would actually downgrade the flight but instead of it they add some new frequenties!

[Pocahontas]

All of this with full support of Lufthansa!

[teddybAIR]

According to De Standaard Brussels Airlines is stepping up their game after Ryanair announced the launch of 10 routes from BRU. Brussels airlines announced a number of new destinations that will be added to the network:

- Ajaccio
- Athens
- Bari
- Bastia
- Cagliari
- Figari
- Malta
- Montpellier
- Sevilla

Krakow and Warsauw will be served all year long and Marseille and Madrid will be increased in terms of frequencies. Later this year, Brussels Airlines plans to open new lounges at BRU and they also announced to organise 75 Tomorrowland flights (twice the number of flights of last year).

[tolipanebas]

Indeed, Lufthansa decided to support this expansion strategy with €100M (over 3 years), so there's more news to come over the coming weeks and months.

[FlightMate]

A lot of new leisure destinations. And with big(ger) planes.
Any idea of what the average loadfactor must be in order to turn these routes profitable?

During july/august, this could be nice. But in winter? Risky strategy.

[Pocahontas]

Everybody was so sure here LH would drop SN... I don't have the impression

[teddybAIR]

From the article I couldn't derive whether the new destinations are seasonal or not

[sean1982]

Lmfao, this better start returning money quick. Very risky strategy.

[Flanker2]

I have to second sean1982... at first glance it sounds risky and I'm not really amazed.
I will analyse it in detail later when all data is available (frequencies, etc...) to put it in perspective.

I already commented on CAG and Bari and the already existing FR operation out of CRL and EIN.
BTW SN already did CAG in the past when there was barely any FR presence and they abandoned after one season. The traffic was too polarised in direction and they ended up operating RJ85's full one way, empty the other way.

[Air Key West]

Answers to most questions in

viewtopic.php?f=31&t=52218

And a new additional loyaly or frequent flyer programme in parallel to Miles&More ?

[AvroRider]

Lmfao, this better start returning money quick. Very risky strategy.

Long time no see ! The usual Brussels Airlines bashers are back in town. So everything they undertake will never be good...
What do you know about airline strategy ? With all due respect Sean don't comment on subjects that you do not have the slightest knowledge.

[Inquirer]

According to De Tijd, SN will recruit 10 pilots and 50 cabin crew members for this expansion, so that's definitely good news for all those people.

http://www.tijd.be/nieuws/ondernemingen ... 7-3085.art

[sn26567]

With bits and pieces disseminated in four different threads, I followed the suggestion of one member to regroup everything under a single item.

I'll first start with summarising the press conference that was presented by Bernard Gustin, CEO, in the presence of Geert Sciot, Vice-President Communication.

Messrs. Gustin and Sciot

2013, a strong year

Gustin first stated that 2013 has been a strong year. New competition at Brussels will be a challenge that Brussels Airlines will take up.

Thanks to a cost reduction of 10%, an optimised network and focus on service (which need not cost money but is better described as an attitude towards the passenger, considered as a guest), Brussels Airlines
- achieved a record traffic of 5.9 million pax (+2.6%),
- increased the load factor in Europe to 69.7% (+2.4%),
- increased the profitability by 10% in Europe,
- recorded many successes
- strong summer,
- summer destinations with a load factor of 85%
- great partnerships with Club Med, Thomas Cook, Tomorrowland that will be increased in 2014 (e.g. 75 dedicated flights for Tomorrowland)

All together, the European network is at the margin of profitability, and this is an encouragement for the future.

The way forward

SN will not leave the door wide open to competitors. It will build on its present successes to tackle them.

Fleet: Until 2016 SN will speed up the Avro RJ100 phase-out and standardise its fleet with A319 and A320 aircraft. Already in 2014 two A319s will be added as soon as possible and the seat offer will grow by 400,000 seats.

Network: The capacities and frequencies will be increased to four leisure destinations: Florence, Palermo, Catania and Marseille. SN will return to Cracow and Warsaw (with a night stop - to improve the schedules as compared to the previous situation). There will be extra frequencies to Madrid, a business destination. And finally, SN will open 9 new destinations (although some had already been served in the past): Athens, Bari, Cagliari, Malta, Montpellier, Sevilla, Ajaccio, Bastia, Figari.

The development of the European network will also help feeding the long-haul flights.

Four pillars of commercial strategy, supported by a tradition of service

1. SN will become even more competitive with competitive price offers, like the past b.gift Xmas at 89€ return that attracted 30,000 guests (new name for passengers, remember?), or the upcoming b.gift Valentine at 299€ for two with an upgrade in b.flex and a free bottle of Laurent Perrier champagne. The summer promotion campaign has already convinced 30% more people than last year at the same period.

2. Competitive product offer. the b.flex/b.light offer was already avant-garde. A new offer of 4 products will be developed, in particular for those passengers used to no-frills, without damaging the business class and b.flex products. Dynamic packages will be created, for example for families travelling together.

3. A brand new web environment will enable travel agents and passengers alike to easily find the best solution for their needs (with or without meals, drinks, checked baggage, etc.). Products and services will be "à la carte", with self service options and the web site will be a one-stop shop for all offers and promotions, using the newest information technology.

4. Improved customer loyalty through the creation of a new loyalty programme (next to Miles & More) for passengers travelling point to point throughout Europe, allowing further binding between the airline and its guests.

And, in late 2014, the company will open its new airport lounges at Brussels Airport.

Little was said about long-haul. It was not the purpose of the conference. However, since the latest improvements, SN has been in the top 5 airlines for quality of its product. It wants to achiece similar results on the European network, through
- pricing
- targeted products
- never give up on service
- a new mission:

To be the most personal airline, bringing people together and making travel a pleasure

---------------------

There were many questions and answers, in which Bernard Gustin explained that such an expansion programme has a cost: 100 million euros in 3 years, which the shareholders have approved.

About the low cost competition in BRU, SN is not afraid, because it can bring an added value in BRU through its connections to 70 destinations.

[sean1982]

Avrorider, how do you know what I know or not? All that money they will invest now would have been better spend on your long haul fleet which is falling apart and develop your longhaul product where you can really differentiate yourself. Now you're gonna be a small cashstrapped airline that is trying to take on one of the big boys in europe who doesnt even need to make money on iTS BRU operation. Dont tell me I dont know what I'm talking about, maybe better then you. I'm not bashing, I just find it unwise.

[RoMax]

Everybody was so sure here LH would drop SN... I don't have the impression

I believe I was one of the few saying multiple times over the past months that I don't see any reason or indication that LH would drop SN, on the contrary. But some found that naive...

To Flanker and Sean, of course this is risky. But what do you expect, that SN will wait and see what happens once Ryanair arrives at BRU at full speed? They made sure they structually reduced their costs and will continue to do so, while addapting their commercial strategy to the changing market conditions and add capacity more aggressively but well considered.
And long haul needs investments too, indeed. But I didn't see any indication today that they will not look any further to long haul anymore. They continue to invest in quality though, with the new lounges (which are most important for the long haul passengers). I think the comming year, there will be other announcements about long haul. But SN doesn't have to think about long haul only and let short/medium haul deteriorate, that would be very stupid to do.

[cnc]

Avrorider, how do you know what I know or not? All that money they will invest now would have been better spend on your long haul fleet which is falling apart and develop your longhaul product where you can really differentiate yourself. Now you're gonna be a small cashstrapped airline that is trying to take on one of the big boys in europe who doesnt even need to make money on iTS BRU operation. Dont tell me I dont know what I'm talking about, maybe better then you. I'm not bashing, I just find it unwise.

longhaul networks shine or fall due to the domestic (euopean in this case) network.
if you destroy your walls or not reenforce them when damaged your roof will collapse no matter how good that roof might be

[airazurxtror]

The first flight of Ryanair has yet to land at Zaventem, and there are already results.
It shows once again that more competition is a good thing (for the consumers at any rate) : it provides more choice, more opportunities and it drives the fares down.
Ryanair should have come sooner !

SN will not leave the door wide open to competitors. It will build on its present successes to tackle them.

The fight is on - that the best win !

[shockcooling]

The first flight of Ryanair has yet to land at Zaventem, and there are already results.
It shows once again that more competition is a good thing (for the consumers at any rate) : it provides more choice, more opportunities and it drives the fares down.
Ryanair should have come sooner !

SN will not leave the door wide open to competitors. It will build on its present successes to tackle them.

The fight is on - that the best win !

Hehe, I do agree with this. It looks like we are seeing an airline reforming itself where before the arrival of Ryanair and Vueling wouldn't have done.

And for Sean, you used the 'lmfao' acronym, that isn't a nice way to op your post, I would call it bashing like avrorider too

[Pocahontas]

Not reacting at all, that is risky business. I like the reaction of my company. Hope they can convince people flying FR to choose our company. And they can, with a little extra service.