Merger Virgin Express (VEX) / SN Brussels Airlines (SNBA)

Post by **sn26567** » 20 Feb 2004, 16:55

I think you have not read the literature on that topic yet (especially in the French forum on the same topic). It says that two products will not be mixed. Virgin Exoress could become the low cost subsidiary of SN BA, like Ted is the LCC of United.

Wouldn't that be a nice solution.

Avro · Post by **Avro** » 20 Feb 2004, 16:59

sn26567 wrote:I think you have not read the literature on that topic yet (especially in the French forum on the same topic). It says that two products will not be mixed. Virgin Exoress could become the low cost subsidiary of SN BA, like Ted is the LCC of United.

héhé, you're right, I've read it afterwarths

But that's still my opinion, how it should end. We shoud have a BIG national comany.

And no I don't think that it would be a good idea to have SNBA with VEX being its LCC subsidary. This option would mean that people wanting to travel with SNBA will be forced to use VEX (aka: Low cost) on several destinations in Europe

I couldn't imagine bothe airlines flying to the same destinations, if VEX would be the LCC of SNBA

Ciao
Chris
8)

Comet · Post by **Comet** » 20 Feb 2004, 17:00

sn26567 wrote:I think you have not read the literature on that topic yet (especially in the French forum on the same topic). It says that two products will not be mixed. Virgin Exoress could become the low cost subsidiary of SN BA, like Ted is the LCC of United.

Wouldn't that be a nice solution.

The topic on the French forum is not much use if you don't read French, is it

Avro · Post by **Avro** » 20 Feb 2004, 17:03

Comet wrote:
sn26567 wrote:I think you have not read the literature on that topic yet (especially in the French forum on the same topic). It says that two products will not be mixed. Virgin Exoress could become the low cost subsidiary of SN BA, like Ted is the LCC of United.

Wouldn't that be a nice solution.
The topic on the French forum is not much use if you don't read French, is it

But I do Louise

, and André was talking to me

Chris
8)

Comet · Post by **Comet** » 20 Feb 2004, 17:07

Sorry Chris, I really should have known shouldn't I?

Post by **sn26567** » 20 Feb 2004, 17:12

Avro wrote:And no I don't think that it would be a good idea to have SNBA with VEX being its LCC subsidary. This option would mean that people wanting to travel with SNBA will be forced to use VEX (aka: Low cost) on several destinations in Europe I couldn't imagine bothe airlines flying to the same destinations, if VEX would be the LCC of SNBA

In fact, there is a lot of overlap: many VEX destinations are also served by SN BA (CPH, NCE, BCN, MAD, FCO, etc.). SN BA should become the sole carrier on these destinations, and VEX would be re-deployed on other - more touristic- destinations (FAO, ATH, AGP, etc.) where it excels.

But we are building on an uncertain future. Let's first see how the discussions will be concluded.

Avro · Post by **Avro** » 20 Feb 2004, 17:21

Comet wrote:Sorry Chris, I really should have known shouldn't I?

Nobody said that

In fact, there is a lot of overlap: many VEX destinations are also served by SN BA (CPH, NCE, BCN, MAD, FCO, etc.). SN BA should become the sole carrier on these destinations, and VEX would be re-deployed on other - more touristic- destinations (FAO, ATH, AGP, etc.) where it excels.

Ok, and then the people wanting to travel with SNBA to let's say FAO, will be obliged to take VEX

Chris
8)

sabena4ever · Post by **sabena4ever** » 20 Feb 2004, 17:41

Avro wrote: We shoud have a BIG national comany.

And no I don't think that it would be a good idea to have SNBA with VEX being its LCC subsidary
Chris
8)

Hi Avro

I think SNBA 'll never become a BIG company as Sabena was
Do not forget that SNBA have to be profitable quickly !!! because she can't go on alone!!! She have to be attractive to be "sold"
The merger between SNBA and Virgin is due to the investment bank because they (the investment bank) want to earn more money!!!

Maybe we can see business pax with snba fleet, and cheapest pax on Virgin, I don't know.
Of course SNBA offers better service than Virgin, but, SNBA is more expensive than Virgin!! for a small difference?!
That's my opinion, please, do not shoot me !!!! I 'm just trying to understand !!
have a nice week-end

OO-SBZ · Post by **OO-SBZ** » 20 Feb 2004, 17:57

sn26567 wrote:But we are building on an uncertain future. Let's first see how the discussions will be concluded.

Indeed Andre...
As a reminder Sabena passengers were often puzzled when they were carried by VEX on a code-shared service...

Opposites clearly don't attract

Regards

BeN

Comet · Post by **Comet** » 20 Feb 2004, 18:01

Avro wrote:
Comet wrote:Sorry Chris, I really should have known shouldn't I?
Nobody said that

Chris
8)

Sorry Chris, I didn't mean it to come across in that way. What I meant was that I should have realised that when Andre said about the topic in the French forum that he was not aiming the comment for me to answer.

A318 · Post by **A318** » 20 Feb 2004, 23:05

I think the merger would be good and no problem at all. Look at the KLM group, full carrier KLM, charter cq tourist carrier Transavia and low cost carrier Basiqair. All in one and all have their own business area. Looking at the financial figures from last year shows that Transavia cq Basiqair were doing financialy better things for the KLM group then KLM itself. So for SNBA it could be a good move to merge with VEX.

Greetz,

Erwin

V-Bird · Post by **V-Bird** » 21 Feb 2004, 11:52

Don`t forget Martinair !! also belonging to the KLM Group. Martinair maintance and cargo are making overtime, Did you see the contracts from martinair mantance?? KLM would dream of it!

Ciao

blackhawk · Post by **blackhawk** » 03 Mar 2004, 23:27

This news was at "Het journaal Laat": SNBA confirm the possible fusion between them and Virgin Express. Richard Brandson seems to agree with a fusion between the two carriers. Within 6 weeks, there should be an agreement between the shareholders. At the moment, there is a overcapacity at BRU, by this fusion, they want to work cheaper and with better service. (so 1 big airliner?)

Buzz · Post by **Buzz** » 04 Mar 2004, 00:22

blackhawk wrote: At the moment, there is a overcapacity at BRU,

I have heard the overcapacity line a few times lately... Do they intent to reduce the capacity after the merger?

Freiheit · Post by **Freiheit** » 04 Mar 2004, 09:47

Sn wil just buy VEX to decrease overcapacity. Pay hard cash, fire most employees, and add the VEX monopolies to its destination portfolio. They try to buy assets from a company on the edge of bankrupcy. I think reducing capacity to be more flexible on the pricing aspect makes sense, as does the addition of destinations to the portfolio. Less codeshares possible. No more cheap fares from BRU airport. I think the need for Best Buy fares will reduce, as competition is less sharp with only foreign competitors on destinations.

Freiheit · Post by **Freiheit** » 04 Mar 2004, 10:05

They seem to want to keep the two brand names. In the end I think we end up with only SN with less overcapacity. Byebye red coloured planes, byebye cheap flight brom BRU. I think it makes sense from an economic point of view to reduce VEX to ATH, Bordeaux, malaga and PMI. Cultural cities as Milan, Rome, Barcelona and Madrid will be served by the SN fleet, because of the importance of the business segment.

danieln · Post by **danieln** » 04 Mar 2004, 11:02

The possoble merger between VEX and SN could open opportunities for EasyJet in Brussels. EZY now has a gentlemens agreement with VEX not to compete on the brussels market. I guess this agreement will be reviewed once Virgin merges with a traditional carrier.

sabena4ever · Post by **sabena4ever** » 04 Mar 2004, 11:47

blackhawk wrote:This news was at "Het journaal Laat": SNBA confirm the possible fusion between them and Virgin Express. Richard Brandson seems to agree with a fusion between the two carriers. Within 6 weeks, there should be an agreement between the shareholders. At the moment, there is a overcapacity at BRU, by this fusion, they want to work cheaper and with better service. (so 1 big airliner?)

Is there a difference between the "het laaste nieuws"'s website and the newspaper" because I don't read that in the website ? : Within 6 weeks, there should be an agreement between the shareholders
For your info;
http://www.hln.be/hln/alg/pag/hln_index ... artid=4514
Just wanna know !!!! thanks
have a nice day

fly · Post by **fly** » 04 Mar 2004, 12:16

I think he ment it was on the late evening news on the VRT (old BRT)
I also heard it and the feedback was accurate....

regards...

blackhawk · Post by **blackhawk** » 04 Mar 2004, 13:45

Yep, Fly is right, it was on the late evening news on the VRT (now also at the 13 o'clock news (VRT as well as VTM). Sorry for the confusion. And it's not a merger, but a take over by SNBA. SNBA will fly for the businessmen, while Virgin will specialize themselves in tourism.

Now, I also read that it wil only be a cooperation between the two carriers.