Brussels Airlines in 2018

[Passenger]

Therefore, it would be utterly stupid from Dirks to reveal a strategic plan and commercial details on a public forum like the Ondernemingsraad/Conseil d'Entreprise. Simply because the competition then also knows.

Not only the competition would know, but the workers, too, would know management's real intentions!
This works council meeting was just a cosmetic operation to keep employees quiet.

1. It wasn't management who called for this works council meeting.
2. The union delegates don't represent the workers. The union delegates only represent their members.
3. Management has already informed the employees about their "real intentions".
4. I'm no SN employee and you are no SN employee. Though we would like to know all details about the long term strategic plan out of curiosity, we can't blame management for not telling us.

[airbuske]

I agree, but for that to work you need an extensive profitable long haul network. not just a partly profitable small one. It also shows that the choice for vast amount of low yield O&D routes was the wrong one. SN’s cost base is too high to make that work

SN has one of the lowest cost base in the LH group, the difference with LH is huge!
There is a rumour that the TXL route is going back to SN because the revenue when operated by EW is too low.

[sean1982]

I agree, but for that to work you need an extensive profitable long haul network. not just a partly profitable small one. It also shows that the choice for vast amount of low yield O&D routes was the wrong one. SN’s cost base is too high to make that work

SN has one of the lowest cost base in the LH group, the difference with LH is huge!
There is a rumour that the TXL route is going back to SN because the revenue when operated by EW is too low.

I get that, Thats why the “long haul center of excellence” will be in hands of SN, but the gap with the loco’s is still big. Most european Airlines can offset their losses on Europe with an extensive long haul network. SN can too with Africa for now, but the region is getting more unstable and fuel prices are on the rise

[sn26567]

I wonder how many European routes operated by LH are profitable ?

Mind you! LH is asking much higher prices than SN on its European routes.

[Boeing767copilot]

Figures 2017
---------------

Operating profit (EBIT) of €14.98 million in 2017 (IFRS standard) vs. 20,4 million in 2016
Net result of €3.57 million (IFRS) vs. 15 million in 2016.

Not so good.

https://www.aviation24.be/airlines/lufth ... n-in-2017/

[luchtzak]

From May 2018, SWISS will introduce a buy on board (BOB) concept from medium-haul flights to/from Geneva. It has been called "SWISS saveurs" and looks a little bit like the BOB concept of Brussels Airlines.

https://www.aviation24.be/airlines/lufth ... om-geneva/

[CTBke]

From May 2018, SWISS will introduce a buy on board (BOB) concept from medium-haul flights to/from Geneva. It has been called "SWISS saveurs" and looks a little bit like the BOB concept of Brussels Airlines.

https://www.aviation24.be/airlines/lufth ... om-geneva/

looks like the LH group is implementing the SN model slowly with their BOB option

[shockcooling]

So it's LH, Swiss and Austrian who are going Hybrid and SN, EW who are going low-cost?

[DeltaWiskey]

Quite a disappointing result imo. It also means they lost €15mio in Q4. I think Carsten Spohr is right when he says that this result cannot be attributed to the attacks of 2016 any longer. However, a profit, no matter how small, is always better than a loss!

I think all airlines are changing towards the "hybrid" model. LCC's like Ryanair are also going for the more premium passengers, not only the lowest fares. Traditional carriers are either going bust or are changing their cost base and revenue model.

I wonder what the next big change is going to be in the airline industry? Maybe one booking for our whole itinerary? From home to hotel resort, I can imagine there will be a time when we will just book a ticket from our departure point to our final destination: taxi/uber, bus, train, car/parking, flight, etc all combined in one purchase. It seems very convenient to me. Could this be the next major upset in the airline industry?

For those wondering why Austrian still is in the "network carrier" segment. They had an EBIT of 100mio (vs SN's 15mio). Their strategy is definitely working better than SN's. But with the competition finally arriving in Vienna (Wizzair is opening a base there), this could also change quickly.

@shockcooling: Eurowings and SN are not going for the "low cost" marketing label, because they simply aren't. Their cost base is never going to be as low as Ryanair's, Norwegian's or Wizzair's. That's why LH Group names their subsidiaries Point-to-Point and Network/Hub airlines.

[Boeing767copilot]

Quite a disappointing result imo. It also means they lost €15mio in Q4. I think Carsten Spohr is right when he says that this result cannot be attributed to the attacks of 2016 any longer. However, a profit, no matter how small, is always better than a loss.

If they lost €15mio in Q4 this means that the deal with TC is not succesfull at all.

[Boeing767copilot]

However I’m pretty sure that LH/EW rather soon than late will cut in the loss making connecting SN flights in Europe.

And EW can with a lower cost base take over some high yield SN routes like GVA and a few others. Not?

[sn26567]

And EW can with a lower cost base take over some high yield SN routes like GVA and a few others. Not?

Who says EW has a lower cost base than SN? Synergies will for sure play a role, but to whom will the profits of the synergies be allocated?

[DeltaWiskey]

If they lost €15mio in Q4 this means that the deal with TC is not succesfull at all.

How is a loss in Q4 directly related to the Thomas Cook deal? SN lost 30 mio in Q1. I think it is more an issue of winter vs summer season/demand.

[C96C]

OO-SFC, Airbus A330-342, MSN 895, is on the Belgian register since 15/03/2018.

I also found a photo of OE-IFU (future OO-SNL) in SN-livery: https://www.jetphotos.com/photo/8888678
It still has its "wifi-bump"

[sn26567]

I also found a photo of OE-IFU (future OO-SNL) in SN-livery: https://www.jetphotos.com/photo/8888678
It still has its "wifi-bump"

Funny to see a Brussels Airlines aircraft with a (temporary) Austrian registration.

It would be nice to keep the WiFi: a new source of ancillary revenues!

[Bralo20]

It would be nice to keep the WiFi: a new source of ancillary revenues!

One day or another they'll have to jump onto the wagon, more and more airlines are getting WiFi and cell service on board. Time for SN to join the club

[convair]

Operating profit (EBIT) of €14.98 million in 2017 (IFRS standard) vs. 20,4 million in 2016
Net result of €3.57 million (IFRS) vs. 15 million in 2016.

https://www.aviation24.be/airlines/lufth ... n-in-2017/

Quite a disappointing result imo. It also means they lost €15mio in Q4.

I didn't catch that €15mlo loss for Q4. Where is it mentioned?

Anyway, although disappointing, it seems the results were affected by several one-shot expenses, like the completion of the short-haul fleet renewal, the Thomas Cook deal, the BOM launching, the writing-off of subsidies, and by the apparently bad performance of the US destinations.

Hopefully, 2018 will be a much better year.

[DeltaWiskey]

I didn't catch that €15mlo loss for Q4. Where is it mentioned?

The Q3 YTD figure is +30mio, full year result is +15mio, hence the loss for Q4.

[b.lufthansa]

Brussels Airlines can certainly do something at their poor on-time performance!

Their ASK is rather low compared to other LH group carriers. A working point!

[lumumba]

Is there already news about the flight to Luanda will it continue true Brazzaville has a new destination?