Flybe

[rollo]

Maersk U.K. was subject to a management buyout and became Duo operating up to 9 CRJ 200/900s from BHX. This was a short lived venture of under a year. I'm not sure if Flybe bought up the assets but would certainly have benefited greatly from the failure of Duo given their extensive route network from BHX including Edinburgh, Milan, Stuggart, Lyon, Oslo, Copenhagen Zurich and Nice plus others.

Duo ceased to exist in 2004.

 

[58terminus]

Duo ceased to exist in 2004.

As this discussion was prompted by liveries Dou's was as simple as it gets. All white fuselage but the gold painted
engine casings and winglets and dark purple tail made them look very smart.
Certainly suited the aircraft they were using.

 

[Seasider]

I hate to challenge TLY's memory on matters of over 40 years ago, but wasn't Jersey European know as Intra A/W, in the 70's and then merged with Spacegrand Aviation in the the early 80's, with JEA being the name they kept.



The photo was taken at Jersey in 1976.

 

[TheLocalYokel]

I hate to challenge TLY's memory on matters of over 40 years ago, but wasn't Jersey European know as Intra A/W, in the 70's and then merged with Spacegrand Aviation in the the early 80's, with JEA being the name they kept.

Jersey European Airways was born in 1979 following a merger between Intra Airways and Express Air services; the midwife was John Habin, a resident of Jersey, who owned most of the new company. In 1983 Habin sold JEA to Jack Walker's Walker Steel group that already owned Spacegrand Aviation. Initially JEA and Spacegrand were run as separate entities (there was some shared management) before amalgamating under the Jersey European name in 1985.

I didn't go into that much detail in my post but you are quite right.

 

[Aviador]

For the record I understand the aircraft was not photoshoped as it landed at Exeter this afternoon by all accounts.

 

[GliderPilot]

Interesting fact, G-JECP the first aircraft in the new livery is the same aircraft that suffered the landing gear collapse in Amsterdam. Not really relevant but very interesting

That concludes my useless fact of the year

 

[Kevin Farnell]

Interesting fact, G-JECP the first aircraft in the new livery is the same aircraft that suffered the landing gear collapse in Amsterdam. Not really relevant but very interesting

That concludes my useless fact of the year

Not a 'useless fact', it is as you say very interesting. The aircraft would have obviously received some damage and even if ferried back from AMS would have required more work. This probably made it the ideal candidate to receive the new paintwork.

Kevin

 

[GliderPilot]

Yes, Makes sense, so they knew it was out of service for an extended duration so they added some leeway to get their new livery right (to them anyway, I'm not keen). Seems logical.

 

[rollo]

I see it's being posted on the Cardiff forum by geoff that Flybe have issued a profit warning indicating a £12 million loss, this airline is always promising a better tomorrow but somehow it never happens.

Said it before they are valuable to BHX but they do worry me it just seems plan after plan with no results, eventually the money will run out.

 

[TheLocalYokel]

I see it's being posted on the Cardiff forum by geoff that Flybe have issued a profit warning indicating a £12 million loss, this airline is always promising a better tomorrow but somehow it never happens.

Said it before they are valuable to BHX but they do worry me it just seems plan after plan with no results, eventually the money will run out.

As today's news potentially affects all Fybe airports I've posted some thoughts in the Flybe thread in the Airline Forum.

 

[smithy108]

This is full story on BBC site which mentions the loss, £10m of which is based on buying themselves out of aircraft lease commitments
Latest share price only values the company at £68m, cheap target ?
https://www.bbc.co.uk/news/business-45887289


Flybe shares sink on profit warning
Flybe shares have fallen more than a third after issuing a profit warning, blaming poor demand, a weaker pound and higher fuel costs.
The airline said in a trading update it now expects a full-year pre-tax loss of £22m before - far higher than analysts had expected.
It has taken a £29m hit from weak sterling and a rise in fuel prices.
However, the overall loss would be closer to £12m due to a £10m windfall from ending an onerous lease.
View attachment 10482
In June the Exeter-based airline reported an annual pre-tax loss of £19.2m, which it blamed on poor winter weather, a major IT overhaul and additional maintenance costs.
Christine Ourmieres-Widener, chief executive of Flybe, said the market had softened in recent weeks after passenger revenue per seat rose 6.8% over the summer period.
"We are reviewing further capacity and cost-saving measures. Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," she said.
"We continue to strengthen the underlying business and remain confident that our strategy will improve performance."

Peter Morris, an aviation economist with FlightGlobal, argued that the UK economy has affected Flybe's performance this year.
"Given that the pound is weakening and they've got to buy their fuel and leases in dollars, you've got a challenge where your revenues are either fixed or declining, and your costs are rising," he told the BBC.
There was a market for Flybe in taking passengers to and from secondary UK cities to destinations across Europe, and opportunities in providing contract flying to other airlines, Mr Morris said.
However, Flybe was "sandwiched" between the business model of budget airlines such as Ryanair, and the network carriers like British Airways that use short-haul flights to connect with long-haul services.
"For example, it might fly from Southampton to Amsterdam, but it's not a major trunk route, so it doesn't have enough corporate flyers. But if it gets to a critical mass, then low cost airlines will join in and fly those routes at lower costs," Mr Morris said. "If you are successful, either group will come after you."
However, Flybe would first need to weather the winter period, where demand was typically the lowest, he warned.
Shares fell 11.8p to 20.3p in morning trading, valuing the firm at just £68m.

View attachment 10482

 

[Ray Finkle]

Worrying times, especially at BHX where they are so crucial.

Jet2 were ready made to step in when we lost Monarch and they covered all but 4 or 5 of their routes. I dread to think of the losses should the worst happen to Flybe

 

[Ray Finkle]

For a short break out March 29th returning March 31st. Prices are for basic fare with no extras included with those quoted in brackets being for a family of four.

Berlin

Flybe from BHX £187.46 (£749.84)
easyjet from LTN £92.39 (£369.56)

Milan

Flybe from BHX £162.41 (£649.64)
easyjet from LTN £56.20 (£224.80)

That is just a snapshot but in the past I have looked at Flybe weekend flights to/from Scotland and found the prices higher than a break in Barcelona with accommodation included.

And those at BHX sit there scratching their heads as to why the catchment area leakage is so high?

 

[thunderchild]

What I don’t understand is that people obviously pay those prices to get to Berlin and Milan from BHX but EasyJet offer much lower fares from other airports yet claim they can’t get a decent yield at BHX?

 

[smithy108]

I think Rays comparison for Berlin and Milan is exactly the problem with Flybe. Where are they trying to pitch their offer? The aviation economist quoted in the article is spot on with his analysis, they are stuck between the lo cost and full carrier model. Generally their pricing, certainly of late, leans towards the later. If the load factors are well up with their high prices, then the yields must be very strong so can easily support a loco operator that will expand the network offered rather than stagnate

 

[GliderPilot]

I don't understand Flybe, the way I see it is they offer a low-cost product for a premium price

 

[Ray Finkle]

For a short break out March 29th returning March 31st. Prices are for basic fare with no extras included with those quoted in brackets being for a family of four.

Berlin

Flybe from BHX £187.46 (£749.84)
easyjet from LTN £92.39 (£369.56)

Milan

Flybe from BHX £162.41 (£649.64)
easyjet from LTN £56.20 (£224.80)

On the same dates British Airways from LHR to Berlin is £107.72 or £430.88 for a family of four.

Milan from LHR is £71.82 (£287.28) to Linate or £116.52 (£466.08) to Malpensa.

It's also worth bearing in mind that London offers a far greater choice of departure times.

 

[Jerry]

Yet if you look at Flybe prices on Berlin and Milan from Cardiff they are cheaper also Manchester is cheaper on Milan. Maybe the problem isn't Flybe's pricing but BHXs charges? Which could also be why Easyjet feel they can't get the yield they need?

 

[Ray Finkle]

Maybe the problem isn't Flybe's pricing but BHXs charges?

And that is a whole new topic of conversation right there!

 

[Ianbutty]

Just on the financial statement it is clear that the higher than expected loss are not due to passenger numbers. That is a real positive.