VLM Airlines news 2017

[JustPlanes]

Its easy for us to just comment... running these airlines is another story but boy what a soup... F50 flights from Antwerp to London, Maribor to Zurich, charters with an A320 and Brussels to China with a wide body... Just missing is a connection from Charleroi to Liege with an Embraer 120

How about the 1st year we run Fokker 50s and do that well... build the routes and passengers and once thats running smooth we can look at the next step... how on earth do you do well running little props around Europe... 1-2 A320s on charters and 1 long haul plane to China... not to mention that neither of those 3 interconnect whatsoever.

My 2 cents... if I was VLM I would look for cooperation... be it with Air Belgium to feed the long hauls for example.... be it with TUI to run smaller routes that don't work on the E190 specially from Antwerp... plenty of destinations they could do... granted its harder to do low cost on a small plane like that but not impossible...

And as far as Air Belgium... I wonder what they're thinking after delaying their start several times all the while Hainan is adding flights to BRU, Cathay is starting up the very route they want and now VLM may start China...

[saratoga]

I agree, it looks all a bit messy. There is a lack of identity in this new VLM story. A bit of this, a bit of that. Happy to see that Mr Heinzmann is back though.

Perhaps in the end it will a less blury.

[Yuqu12]

I also saw the A320 in BRU yesterday. Will they also operate from there ... ?
D

Apparantly, the A320 flies once a week as a charter to Eskisehir.

[nordikcam]

I also saw the A320 in BRU yesterday. Will they also operate from there ... ?
D

Apparantly, the A320 flies once a week as a charter to Eskisehir.

I flew yesterday to LYS and back. Two VLM airbus were parked @BRU.

[sn26567]

Its easy for us to just comment... running these airlines is another story but boy what a soup... F50 flights from Antwerp to London, Maribor to Zurich, charters with an A320 and Brussels to China with a wide body... Just missing is a connection from Charleroi to Liege with an Embraer 120

How about the 1st year we run Fokker 50s and do that well... build the routes and passengers and once thats running smooth we can look at the next step... how on earth do you do well running little props around Europe... 1-2 A320s on charters and 1 long haul plane to China... not to mention that neither of those 3 interconnect whatsoever.

My 2 cents... if I was VLM I would look for cooperation... be it with Air Belgium to feed the long hauls for example.... be it with TUI to run smaller routes that don't work on the E190 specially from Antwerp... plenty of destinations they could do... granted its harder to do low cost on a small plane like that but not impossible...

And as far as Air Belgium... I wonder what they're thinking after delaying their start several times all the while Hainan is adding flights to BRU, Cathay is starting up the very route they want and now VLM may start China...

Good analysis. VLM seems to lack a coherent strategy.

Christian Heinzman might be able to bring in some vision as a real connoisseur of the airline industry at KLM and Luxair(although he has also been at the helm of our national railways SNCB/NMBS).

[Klausenburg]

Christian Heinzman was general manager of Tarom between 2012-2016. Probably a more important experience for him then Luxair or KLM, because, as he put it, working for the state-owned carrier was harsher then working in Albania or Bangladesh. Among his achievements were reducing loss by 75%. However he couln't take any important strategical decissions as political support lacked. After he left, things got back to disarray as the loss in 2017 will be five times the bigger then in 2016!

[Haplek]

So... as the following writing is a BIG topic in Slovenia in the past days, I will write something here too.

Mayor of Maribor, dr. Andrej Fištravec announced that SHS Aviation and China State Construction Engineering Corporation (CSCEC) signed a contract for complete major plan of Maribor Edvard Rusjan Airport (MBX). The mayor announced that SHS Aviation is going to invest €660 million. And yes, that is not a mistake, that is the astronomic number mayor announced. He said that it was signed in Budapest at the sitting of 16+1 Initiative as a part of "One Belt, One Road" programme. CSCEC is the biggest civil engineering company on the planet.

Two Slovenian ministries (one for infrastructure and one for economic development), however claimed all of the announcements untrue. As the MBX is owned by Republic of Slovenia and SHS Aviation being only concessionaire of MBX, SHS Aviation is prohibited to do (build) anything without knowing (allowing) or cooperation of Slovenian Government. The minister for economic development, Zdravko Počivalšek told the ministry was not informed about anything on the topic. The major of Maribor, Andrej Fištravec, however returned that both ministries were informed already 3 days before the mysterious contract was signed. Mayor Fištravec also applied that all of the instances should meet to start the project.
He meant:

• Aerodrom Maribor

• SHS Aviation

• CSCEC

• Ministry of Economic Development and Technology

• Ministry of Infrastructure

My opinion is that there is something behind the story but who knows what. But I can not believe a word to the mayor Fištravec.

Some English articles I found on the topic:

http://www.sloveniatimes.com/maribor-ai ... 60m-revamp

http://www.dailymail.co.uk/wires/reuter ... rport.html

For any further questions, just simply comment. As the topic is bigger and interesting and there are already some more news in the media in compare to what I have written, do not hesitate to ask.

I wish you all a pleasant evening!

[sn26567]

SHS Aviation is going to invest €660 million in MBX.

That looks like big news indeed. But hard to believe. SHS Aviation has already difficulties in acquiring planes for its core business. Why would they invest to expand an airport that they don't own? And from where would they get the money? Certainly not from current operations.

Thanks for the information, and please keep us informed of the follow-up.

[Haplek]

Thank you, sn26567, for your comment.

Of course it is hard to believe. The number is astronomic. Maybe I would believe it if there was one 0 less (€66 million). But even than it would be hard to believe.

So... ta answer your question... To make it clear, SHS Aviation has 3 subsidiaries. These are:

• VLM Airlines Belgium

• VLM Airlines Slovenia

• Aerodrom Maribor

Aerodrom Maribor is the company which runs Maribor Airport (MBX). This year they obtained concession to operate with state-owned infrastructure at MBX. Some facts from the contract:

• Aerodrom Maribor may operate MBX (infrastructure and equipment) for 15 years with possibility of extension for another 5 years

• Aerodrom Marobor must develop passenger and cargo traffic at the airport

• Aerodrom Maribor is obliged to pay €95,000 rent for the airport per month

So why is SHS Aviation interested in expending the airport they do not own...

• They may operate with it for at least following 15 years

• They also operate own airline. They can have a pure monopoly at MBX. For instance, if some other airline decides to operate the route to MBX, they can charge them as much as they want. Easily so much that operation of some second airline could not be profitable

• If they develop MBX good, they can extend the contract of concession

• Just imagine. One company that operates an airport and owns an airline. Operations of an airline from its "own" airport can be free.

And the other question, financing. You are fully right that SHS can not finance this investment from its own funds. Only maybe if they had at least €200,000 net profit per passenger. It was reported that SHS Aviation would fund the project from its own funds and also take some bank loans. If SHS Aviation really has so much money than it probably comes from China (As construction company, CSCEC that was reported that will carry out the project). I am also wondering where Aerodrom Maribor (SHS Aviation) get those €95,000 per month to pay for the airport. The ministry officials said that rent is always payed fully and on time (as predicted by contract). Also here is explicit that money is coming from elsewhere. Keep in mind that there is almost no traffic at all at the airport. This year the number of passengers is predicted to be below 6,000. Btw, current terminal was finished only some years ago and it has the capacity of at least 600,000 passengers per year.

So, I believe that this topic is one of the best for the people who love speculations and conspiracy theories. As there is so much rumours and just some few facts. The optimists could say that all is a part of Chinese major plan for its influence in Europe.

I will write some comments and keep you informed when I will have some spare time to write. Have a nice day!

http://www.exyuaviation.com/2017/12/mar ... llion.html

[luchtzak]

• They also operate own airline. They can have a pure monopoly at MBX. For instance, if some other airline decides to operate the route to MBX, they can charge them as much as they want. Easily so much that operation of some second airline could not be profitable

Will the EU agree on the monopoly position at the airport ? I doubt that ...

[Haplek]

Will the EU agree on the monopoly position at the airport ? I doubt that ...

The way to the point where EU might be worried or even act against the monopoly at MBX is long. Honestly, I believe the way is so long that SHS Aviation will never make so far.

But do not understand me wrong, I wish all the best to SHS Aviation and good work on their project.

[Klausenburg]

Will the EU agree on the monopoly position at the airport ? I doubt that ...

There is already at least one such case I know of. Bacau Airport (BCM) in Romania was modernized and is operated by Blue Air (BMS). The entity that manages the airport must offer the same conditions to all interested operators. Otherwise, there is no problem. And it shouldn't be for a small airport like Maribor also. Is not like airlines would fight to fly from Bacau or Maribor...

[Not Real]

They just started and they are already taking very strange decisions...

[Acid-drop]

"VLM Airlines plans to lease one A330-200 aircraft and is considering serving Shenzhen from either Brussels or Liege from as early as Apr-2018."
Are they really hesitating between the 2 airports ?

[SR20]

"VLM Airlines plans to lease one A330-200 aircraft and is considering serving Shenzhen from either Brussels or Liege from as early as Apr-2018."
Are they really hesitating between the 2 airports ?

If they have cooperation plans with the chinese tour-operator U-Tour, that could be an explanation !
U-Tour used to bring chinese tourists at Liege the past 2 years !

[sn26567]

On the other hand, VLM had a bad experience at Liege in the past: many destinations opened at once and closed after only a few weeks...

[DIBO]

VLM had a bad experience at Liege in the past

that had nothing to do with LGG, but all with bad management on VLM's side

[sn26567]

VLM had a bad experience at Liege in the past

that had nothing to do with LGG, but all with bad management on VLM's side

I fully agree. I never said that LGG was the culprit.

[cs100]

In the METRO, a newspaper, there is a travel article on going to Antwerp with VLM.
.

rrrrr.pdf

(1.06 MiB) Downloaded 432 times

[Mariborchanka]

VLM flights from Ljubljana (LJU) to Brussels from 8. 1. to 23. 3. 2018?


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Screenshot: Flight Schedule (29. 10. 2017 - 24. 3. 2018) Ljubljana airport, source: http://bit.ly/2BiEIG3
(odhodi = Departures, prihodi = Arrivals)