Brussels Airlines future and financial perspective

[tolipanebas]

Video of B.Gustin from the IATA Annual General Meeting with some interesting comments.

http://www.iata.org/events/agm/2016/Pag ... spx?vid=42

"Keep our expansion plans as before, substantially grow our marketshare and post a strong profit for 2016"

[Passenger]

Gustin also spoke to Luchtvaartnieuws.nl in Dublin:

http://www.luchtvaartnieuws.nl/nieuws/c ... -lufthansa

Content: see
https://translate.google.com/

[Inquirer]

Gustin also spoke to Luchtvaartnieuws.nl in Dublin:

http://www.luchtvaartnieuws.nl/nieuws/c ... -lufthansa

A password is needed to access this site, it seems: any chance for a summary?

[Passenger]

Gustin also spoke to Luchtvaartnieuws.nl in Dublin:

http://www.luchtvaartnieuws.nl/nieuws/c ... -lufthansa

A password is needed to access this site, it seems: any chance for a summary?

Gustin hopes that Lufthansa will go for a majority shareholding. SN is very happy with today's collaboration, but with LH as minority stakeholder, SN will benefit much more. Example: New York and Washington, where LH is SN's handler. However, SN is not a LH priority carrier there. Once LH owns SN at 100%, SN will equal treatment as LH.

Some years ago, partnership with KLM was indeed a possibility, but both agreed that there are too much similarities (overlappingen) and that there is too much competition between KLM and SN. However, Gustin is on excellent speaking terms with KLM's board.

Brussels/Belgium will recover sooner from the terrorist attacks then Paris/France. Reason: France is a tourist destination and it takes more time before tourists travel again after a terrorist attack. Brussels is a business destination, and people who travelled to the European institutions before 22/03, must do so again soon after 22/03. And they did. Business travel (including EU) is picking up again.

A new long haul destination will soon be announced.

He also repeated what has been posted many times already here (total estimate of the damage, but covered by Insurance, ...).

- - -

And on a sidenote about the Netherlands, not mentionned in the above article: the Dutch Transportraad (= the Dutch National Transport Board) holds a meeting tomorrow. Rumours are that they will decide to give more landing rights to ME3 carriers at AMS - a decision that KLM doens't appreciate (that's polite Dutch for "damned").

[sn26567]

...related to the shift of NBO from SN to LH (and ACC back to SN) I think this news fits here. LH is seriously downgrading capacity on this route.
Instead of operating an A340-300 with 279 seats (starting 25 Oct) they'll use a Privatair 737-700 with 86 seats (2-class configuration). This is currently scheduled until the end of August 2016. Also instead operating daily in 2016 summer peak season, they now plan just 3 flights per week.

Lufthansa will deploy the A340-300 again and increase its frequencies on the Nairobi – Frankfurt route, beginning September 2016.

[Atlantis]

Brussels Airport and Brussels Airlines were sitting around the table a few days ago to discuss the future of the airlines when they will be completely under the wings of Lufthansa.
Brussels Airport absolutely don't want that Brussels Airlines will become a LCC as they want a very strong home player who is connection Brussels with huge parts of the world (read: future expansion in Long Haul)

Brussels Airlines itself also don't want to become a LCC as they have a very strong brand now in Europe and Africa. The States are growing.

This is a very strong signal towards Lufthansa to not play with the future of Brussels Airlines as a very strong brand and airline and needed respect is requested by keeping the name and the structure how it is now.

Congratulations to Brussels Airport and Brussels Airlines in this to make a strong and clear signal to Lufthansa.

[sean1982]

Brussels Airport and Brussels Airlines were sitting around the table a few days ago to discuss the future of the airlines when they will be completely under the wings of Lufthansa.
Brussels Airport absolutely don't want that Brussels Airlines will become a LCC as they want a very strong home player who is connection Brussels with huge parts of the world (read: future expansion in Long Haul)

Brussels Airlines itself also don't want to become a LCC as they have a very strong brand now in Europe and Africa. The States are growing.

This is a very strong signal towards Lufthansa to not play with the future of Brussels Airlines as a very strong brand and airline and needed respect is requested by keeping the name and the structure how it is now.

Congratulations to Brussels Airport and Brussels Airlines in this to make a strong and clear signal to Lufthansa.

clear signal indeed, but useless once the takeover is complete. Karl Urlich Garnadt, member of the executive board of Lufthansa, has stated that Ryanair is the benchmark for eurowings in terms of cost and it is no secret that SN is their testing ground.

[sn26567]

The situation of the LH Group in BRU might become similar to what's just happening now in VIE (since yesterday in fact). OS continues flying, with intercontinental flights and European feeders, and EW starts with flights to touristic destinations (with Austrian registration and crews).

In a similar way, SN could keep its intercontinental flights and many European feeder flights, and the touristic destinations could be taken over by EW with Belgian-registered aircraft and Belgian crews.

[flywithUs]

Does SN needs all their planes to operate feeder flights during hub waves?

If so, I wonder if it is such a good strategy from a fleet management point of view. As many feeder flights need to be operated at a precise time of the day, SN can hardly have less planes. We can assume that there are some holes in aircraft utilisation schedules (outside hub waves). Currently, leisure-oriented flights fill those holes.

If they need a separate entity (EW) to operate leisure flights, you'll end up with SN planes sitting on the ground outside hub waves, lowering the efficiency of the combined SN/EW BRU ops. They'll lose flexibility in their planes (and perhalps also crew) schedules as well as facing brand dilution. Sure EW will have a lower CASM but does it compensate the mess of having two airlines i.s.o one? IMHO no...

But let's wait and see if this strategy work in VIE

[Bralo20]

clear signal indeed, but useless once the takeover is complete. Karl Urlich Garnadt, member of the executive board of Lufthansa, has stated that Ryanair is the benchmark for eurowings in terms of cost and it is no secret that SN is their testing ground.

Not exactly. If the current owners of SN Airholding (or more precise the one leading the negotiations (Davignon or Gustin?)) is good in negotiating then they'll include a clause in the sales contract that the airline needs to carry the Brussels Airlines name (or maybe even the Sabena name as they are also owner of that brand (or one of both)) for at least X amount of time (can be 1 year but it can also be indefinitely). While after the sale they aren't current owners anymore the sales contract is legally binding and enforceable and thus LH would have to oblige and follow the contract.

I'm quite sure this will be included in the contract, the question is which timeframe will be included (1, 2, 3, 5, 10, X years?).

[convair]

Not exactly. If the current owners of SN Airholding (or more precise the one leading the negotiations (Davignon or Gustin?)) is good in negotiating then they'll include a clause in the sales contract that the airline needs to carry the Brussels Airlines name (or maybe even the Sabena name as they are also owner of that brand (or one of both)) for at least X amount of time (can be 1 year but it can also be indefinitely). While after the sale they aren't current owners anymore the sales contract is legally binding and enforceable and thus LH would have to oblige and follow the contract.

I'm quite sure this will be included in the contract, the question is which timeframe will be included (1, 2, 3, 5, 10, X years?).

Unless it was provided for in the initial contract, the exercice by LH of its option on the remaining SN shares will not necessarily be the object of a separate sales contract imho. When they'll own all the shares, LH will be able to do pretty much what they want, except maybe such things as relocate the Head Office outside Belgium provided, of course, such clause was included in the initial agreement.

[brusselsairlinesfan]

Looking @ the brussels Airlines may '16 traffic figures and putting them in perpective with those of brussels airport, it seems that SN market share @ BRU is close to 36%... Still relatively "weak" for an home carrier but well above the 25% mark they had some years ago... Will this positive trend continue? Any chance for them to reach 40% or more this year?

[Conti764]

Looking @ the brussels Airlines may '16 traffic figures and putting them in perpective with those of brussels airport, it seems that SN market share @ BRU is close to 36%... Still relatively "weak" for an home carrier but well above the 25% mark they had some years ago... Will this positive trend continue? Any chance for them to reach 40% or more this year?

If they continue on recovering faster from 22/03 then Brussels Airport, probably yes...

[b720]

why should the name be preserved? EUROWINGS is not more generic than Brussels airlines.. The service on SN is not superior to that of a LCC. Their on time performance is not great, there is absolutely no service on board, (unless one flies Flex or C) nor after sale service.. call centers closed after 7 pm!).. I am sure that they can offer the smile on EUROWINGS as well.. If EUROWINGS can have a strong base at BRU backed 100 pct by LH, I think that that is the best option, and the sooner the better! They can as well incorporate the Africa flights and probably expand in N.A. Clients in Africa will get used to the new name.

[sn26567]

Why should the name be preserved?

Davignon and Gustin have repeatedly advocated maintaining a Belgian touch, if only for the Belgian customer base which still makes up for the majority of the business. Changing names always implies a loss of recognition and a lot of work and resources to make the new name known.

[convair]

why should the name be preserved? EUROWINGS is not more generic than Brussels airlines.. The service on SN is not superior to that of a LCC. Their on time performance is not great, there is absolutely no service on board, (unless one flies Flex or C) nor after sale service.. call centers closed after 7 pm!).. I am sure that they can offer the smile on EUROWINGS as well.. If EUROWINGS can have a strong base at BRU backed 100 pct by LH, I think that that is the best option, and the sooner the better! They can as well incorporate the Africa flights and probably expand in N.A. Clients in Africa will get used to the new name.

Very negative view imho; always easy! Even Sean wouldn't be that negative about SN.
Despite some weaknesses, Brussels Airlines has an established name and apparently a good reputation in the business. They define themselves as a hybrid airline now and it is true that for the pax who take the low cost option, they have an LCC approach, but they also have higher grade options, even in economy, and their C class is as good as many others.
Let EW first make a name and a reputation for itself in the leisure business, then we'll see...

[sean1982]

why should the name be preserved? EUROWINGS is not more generic than Brussels airlines.. The service on SN is not superior to that of a LCC. Their on time performance is not great, there is absolutely no service on board, (unless one flies Flex or C) nor after sale service.. call centers closed after 7 pm!).. I am sure that they can offer the smile on EUROWINGS as well.. If EUROWINGS can have a strong base at BRU backed 100 pct by LH, I think that that is the best option, and the sooner the better! They can as well incorporate the Africa flights and probably expand in N.A. Clients in Africa will get used to the new name.

You get what you pay for B720. You want to full package? It's available but you need to pay for it. a la carte flying is the way forward. I don't know how I feel about a name change for SN. I would prefer Brussels Airlines to stay iso of the generic Eurowings (although my fear is that it wont) but I strongly feel working under BOTH brands would be bad. It should be one or the other

[b720]

300 Eur or even 400 Eur on lite, is not cheap.. Compare it with what you get on LX or even LH ...
I have never found this 39 Eur or 69 Eur o.w. Fare.. That's cheap.. But paying 400 Eur return
In lite.. Well.. One pays LX fares and gets inferior to easyjet service.

[b720]

It should be one brand, as Sean says. What I meant is that SN today is not a full service airline, apart from L.H.
C class within Europe is just to feed into L.H. Intra european pricing makes that obvious. SN does not offer the service Swiss and LH offer. It could fit as eurowings low cost.. With a premium for extras.

[brabel]

300 Eur or even 400 Eur on lite, is not cheap.. Compare it with what you get on LX or even LH ...
I have never found this 39 Eur or 69 Eur o.w. Fare.. That's cheap.. But paying 400 Eur return
In lite.. Well.. One pays LX fares and gets inferior to easyjet service.

I have found it a few times.
Flying to Toulouse next week for 69€ return with SN