Brussels Airlines future and financial perspective

[sn26567]

In L'Echo, Gustin also said that without investments, there would be no route to Washington, and no longer Korongo, but black figures. "Beyond 2012-2013" enabled a reduction of costs by 10% through a harmonisation of the fleet (Airbus), pilot flexibility (summer and winter), salary freeze, increased productivity.

[crew1990]

In L'Echo, Gustin also said that without investments, there would be no route to Washington, and no longer Korongo, but black figures. "Beyond 2012-2013" enabled a reduction of costs by 10% through a harmonisation of the fleet (Airbus), pilot flexibility (summer and winter), salary freeze, increased productivity.

This would mean that the A330-200 operating IAd would be put on another LH rotation and the Boeing 737 back in operation in Europe?

[RoMax]

This would mean that the A330-200 operating IAd would be put on another LH rotation and the Boeing 737 back in operation in Europe?

?
What he means is that SN could have been profitable in 2013, but that would have ment stop investing further in Korongo (and if that would result in Korongo ceasing operations, SN wouldn't deploy the 737 on their own network again, Korongo could also go on and search for new investors), not adding a new long haul aicraft and long haul destination,... So basicly short term money at the cost of mid to long term investments.

[Inquirer]

May I suggest this topic is cleaned up by the moderators, to rid it from the off topic rant started by Sean?
It makes reading this topic difficult and especially in future when we come back to this topic as reference, it makes finding information as good as impossible.
Thank you.

[Flanker2]

I'm happy that SN is improving its financials. They have taken a step in the good direction even if helped by fuel prices, higher euro and improving economy.

I rather be wrong than see SN going down.

However, SN better stay put because this year will prove whether they are fit to stay around.

[b720]

There definitely is a market for the SN product. They Offer excellent service, operate from a very good
hub, allied to LH and its partners. They are here to stay, they just need to keep a lid on their costs, that
is crucial, and they need to keep expanding in regional airports within EUR. offering seamless connections W- and N-S Europe. Should grow Long haul carefully and MUST do something about AFRI in face of the growing competition> AFRICA can no longer be the bread and butter as before. I wish them a fantastic 2014!

[airazurxtror]

In the end however, it doesn't matter what WE think of it, it only matters what shareholders think of it and believe me: they have studied the financial figures and the underlying performance which are known for some time now internally and are strongly impressed with the much improved operational results (...)

It's a good thing that SN shares are not quoted on the Stock Exchange : one would really see what the shareholders think of it - I mean the real investors who expect a dividend and a rise in value.
At the moment, there are on one hand the historic shareholders who are stuck with their shares and have lost all hope of getting rid of them at a good price - and on the other hand Lufthansa, in no hurry to buy more shares, it seems ( and whose other subsidiaries like Austrian, Swiss, Germanwings all show a profit).

[RoMax]

Germanwings all show a profit).

Germanwings is not profitable, not yet. And it took Austrian 6 years to return to an operational profit.

[sn26567]

Germanwings all show a profit).

Germanwings is not profitable, not yet. And it took Austrian 6 years to return to an operational profit.

And at Austrian, it's only an operational profit, not yet a financial profit.

[sn47031]

Dear Sean,
You compare fares like comparing aplles with oranges.
SN is flying triangle flights into Africa.
The fare into BJM is much higher as to NBO although operated on the same flight/dte.
Smart guys would buy a ticket to NBO and try to disembark in BJM which already happened.
Ticket fares are based on routing, availabilty, competion, etc,...

[OO-ITR]

It's a good thing that SN shares are not quoted on the Stock Exchange : one would really see what the shareholders think of it - I mean the real investors who expect a dividend and a rise in value.
At the moment, there are on one hand the historic shareholders who are stuck with their shares and have lost all hope of getting rid of them at a good price - and on the other hand Lufthansa, in no hurry to buy more shares, it seems ( and whose other subsidiaries like Austrian, Swiss, Germanwings all show a profit).

well since SN is not quoted on the Stock Exchange, but LH Group is, let's have a look at what that share did the last few days. Since LH is the major stakeholder in SN and a bad result of SN would affect LH...

http://www.reuters.com/article/2014/03/ ... VW20140313

Oops their share went up...

[sn26567]

Since LH is the major stakeholder in SN and a bad result of SN would affect LH...

The SN part of the total LH turnover is insignificant. Hence, the value of the LH share will be influenced essentially by the performance of LH itself, and in a smaller part by the performance of its large subsidiaries, LX and OS. LH itself did not perform very well, although its profits remain steady. LX had an excellent year, and OS is improving. Altogether, LH cannot complain about 2013 and its Scope programme is on schedule. Thus, shares go up!

[OO-ITR]

Since LH is the major stakeholder in SN and a bad result of SN would affect LH...

The SN part of the total LH turnover is insignificant. Hence, the value of the LH share will be influenced essentially by the performance of LH itself, and in a smaller part by the performance of its large subsidiaries, LX and OS. LH itself did not perform very well, although its profits remain steady. LX had an excellent year, and OS is improving. Altogether, LH cannot complain about 2013 and its Scope programme is on schedule. Thus, shares go up!

oh but don't worry, if LH or one of the daughters (even not fully 100% ) would perform badly, it won't take long till the analists give a negative recommendation, it will influence the share. big time... that is economics.

I wonder what Inquirer has to say about this...

[RoMax]

LH itself did not perform very well, although its profits remain steady.

Actually their net profit decreased quite a bit. But excluding exceptional costs (partly because of the Score program) they would have over a billion in profits. So it depends on how you look at the numbers. The stock keepers clearly see the long term strategy despite the short term loss in profits.

[Lysexpat]

oh but don't worry, if LH or one of the daughters (even not fully 100% ) would perform badly, it won't take long till the analists give a negative recommendation, it will influence the share. big time... that is economics..

The value of SN in the LH books is probably close to zero, so SN results won't influence the LH share price at all. The reason why LH rose is that investors expect LH to pay a dividend in the future. When interest rates are near zero shares with nice dividends perform well.
Back to results themselves: they are not good, the target was set at 0 to -20, hoping it would be zero. Despite state aid, this target was missed. The only good news is that it looks as the figures will be better this year.

[OO-ITR]

oh but don't worry, if LH or one of the daughters (even not fully 100% ) would perform badly, it won't take long till the analists give a negative recommendation, it will influence the share. big time... that is economics..

The value of SN in the LH books is probably close to zero, so SN results won't influence the LH share price at all. The reason why LH rose is that investors expect LH to pay a dividend in the future. When interest rates are near zero shares with nice dividends perform well.
Back to results themselves: they are not good, the target was set at 0 to -20, hoping it would be zero. Despite state aid, this target was missed. The only good news is that it looks as the figures will be better this year.

I wasnt talking about the value in LH books. I am talking how analists value a share if a company (or one of their daughters) is in their eyes not doing well... Sometimes a rumour is enough to ditch a share.
Or in case of LH, the share went up so probably analists and investors (people who buy the shares) think LH is not doing badly...

[sn26567]

One other thing that Gustin said during the presentation of the results was that SN is still actively pursuing the search of a third U S destination. Given the current financial situation, they better take the right city.

[OO-ITR]

One other thing that Gustin said during the presentation of the results was that SN is still actively pursuing the search of a third U S destination. Given the current financial situation, they better take the right city.

I guess opening a third US destination will be for next year. Maybe it also depends what 9W will do.

[crew1990]

One other thing that Gustin said during the presentation of the results was that SN is still actively pursuing the search of a third U S destination. Given the current financial situation, they better take the right city.

I guess opening a third US destination will be for next year. Maybe it also depends what 9W will do.

Or even in winter if they manage to find a A330 on time...

If Jetairways leave BRU, my guess is that SN will take over Toronto and fly there in the evening as extra capecities with the Air Canada rotation with a code share agreement, a bit like they are already doing with In Washington with United. And also, as there will be less flight to the New York area, SN could add an evevenig departure to JFK

So it would look like this:

New York 1 2 3 4 5 6 7
2 4 6
Toronto 1 3 5 7

And in case 9w doesn t leave SN could start a new route to Boston.

New York 1 2 3 4 5 6 7
Boston 1 3 5 7

Just a guess of course

[Sean_DM]

Dear Sean,
You compare fares like comparing aplles with oranges.
SN is flying triangle flights into Africa.
The fare into BJM is much higher as to NBO although operated on the same flight/dte.
Smart guys would buy a ticket to NBO and try to disembark in BJM which already happened.
Ticket fares are based on routing, availabilty, competion, etc,...

Dear SNsomething, please put your glasses on. I have never mentioned BJM nor NBO. Thanks