Icelandair

[Ray Finkle]

BHX fees and charges, most airport websites have links to theirs.

https://www.birminghamairport.co.uk/media/2937/fees-and-charges-final-version-march-2016.pdf

I suppose it needs to be said that airlines could have their own individual deals which may well differ considerably from the published fees.

What happens when any start up incentives run out will most likely only ever be speculation as those who do know would be very unlikely to leak it into the public domain, not if they like their jobs anyway.

 

[David_itl]

MAN had a reputation for being high charges and saw easyJet walk to Liverpool when they found the inflexiblity of MAN to accede to their requests. That started the process of reflection that allowed airlines to start up (not without the odd alarm known as Ryanair!). What BHX will need to do is to see if they can manipulate their charges. It's not as if there isn't a viable market for BHX to tap into - perhaps what should be initial phase of trying to pitch for airlines is to not discount as much for new routes so that once the incentives run out, there's not such a big leap to "normal" charges which may render some routes borderline to loss-making. There may well be some routes/airlines that walk away but I'm assuming people would rather have more committed airlines than those just looking for cheap deals all the while.

 

[JF57]

BHX fees and charges, most airport websites have links to theirs.

https://www.birminghamairport.co.uk/media/2937/fees-and-charges-final-version-march-2016.pdf

I suppose it needs to be said that airlines could have their own individual deals which may well differ considerably from the published fees.

What happens when any start up incentives run out will most likely only ever be speculation as those who do know would be very unlikely to leak it into the public domain, not if they like their jobs anyway.

I thought I had seen them before. Very complex to work out what the cost is for any particular aircraft just for BHX let alone compare with others using the quoted figures let alone any special offers!

 

[Aceshigh]

There is a worry that a lot is now riding on Primera , the big problem here could be Stansted. I suspect MAG might well offer some healthy discounts and deep pockets to ensure the STN operation works, that's two airports competing on similar routes just 2 hours apart. My worry for BHX is a suspicion that Primera "might" be tempted to focus on "The London Operation" if there is any hesitancy in BHX delivering good yield.

 

[User001]

I was thinking about this last night, and I personally don’t think this particular case revolves around the ‘introductory fees’ running out.

Icelandair will have a team of network planners and legal persons. They will scrutinise all contracts and make sure everything checks out. Therefore, they will have known if any such ‘introductory rates’ would have run out and any ‘standard rates’ would have been in effect (assuming such things did exist in the contract).

This means they would have had advance knowledge of those dates and planned around them accordingly, not 5 weeks before that date, when plenty of passengers would already be booked onto those flights after that date. It’s also generally not in Icelandairs style to pull a route in the current season, that is, unless something happens to warrant that.

So to me, it does beg the question, what happened? Could things be a bit ‘strained’ at BHX currently with no clear leadership, especially with so many issues to overcome at this present time, and that results in a breakdown of relationships with the airlines?

Could it be a lack of forward vision? For example, When Will Pearson was at MAN, we too had an issue with airlines going as quickly as they came? He seems to be having the same luck here, with the revolving door effect. Has no issue bringing them in, but can’t make them stay. I always thought it was an easier job to convince an airline to stay than it was to come in the first place?

It just sees to me that BHX need to use some different tactics, and that is work on the sustainability of routes. All I can say is though, that if all of these losses. Like UA, TS and now FI have been to keep Primera sweet, I hope to god that BHX doesn’t end up with its pants down, otherwise they really will have a lot of ground to cover!

 

[Aceshigh]

Quite agree. Have they given a deal to Primera which has now "got out" and possibly upset Icelandair?

 

[Ianbutty]

Bums on seats keep routes going. The icelandair numbers are no doubt well below expectations...icelandair expectations...and the trajectory does not improve on that. When an airline agree to a new route they set targets. If they are not met over a period of time the plug is pulled. Airports know this also and support the airline where they can but airports also have financial targets and cannot keep incentives going indefinitely.

If icelandair was not meeting targets and not projected to do so, off they go. Given that RYK serves as a transatlantic stopover and routes like BHX feed the transatlantic services (as well as the UK to Iceland tourism market) the forthcoming Primera network to North America probably played a major part in the decision.

This is now a well served route from the UK and with other route options that Icelandair were fulfilling now opening up the route is obviously not sustainable.

Maybe someone will step in with a different model and make it a success.

Lessons can be learned. The big question remains why BHX cannot sustain growth...Geography, competition and propensity to fly. Cannot do anything about our geography. Improve the airport, publicity, accessibility and fares to improve competition. And regional economic growth to increase propensity to fly.

 

[oriona300]

November 2017 2016
ABERDEEN - KEFLAVIK 784 984 -20
BIRMINGHAM - KEFLAVIK 3 633 3 445 + 5

Got these figures off CAA stats page looks like 2 weekly
Air Iceland Connect
De Havilland DHC-8 400 Series
I know we had 757 but how can a route that's loosing passengers be retained but a route that's increasing be cut .

 

[Aviador]

November 2017 2016
ABERDEEN - KEFLAVIK 784 984 -20
BIRMINGHAM - KEFLAVIK 3 633 3 445 + 5

Got these figures off CAA stats page looks like 2 weekly
Air Iceland Connect
De Havilland DHC-8 400 Series
I know we had 757 but how can a route that's loosing passengers be retained but a route that's increasing be cut .

It's the infamous yield that maters most of all unfortunately.

 

[Ray Finkle]

I know we had 757 but how can a route that's loosing passengers be retained but a route that's increasing be cut .

If the rumours have any truth then it may well be a political* decision.


*Not in the governmental sense.

 

[58terminus]

If the rumours have any truth then it may well be a political* decision.


*Not in the governmental sense.

Thanks Ray. I had overlooked Primera's Icelandic rootes.
If that is what are hinting at?

 

[Matt995]

I believe the Icelandair flights finished on Monday, with TF-FIR in 80 years of Aviation Livery, flying the last service, arriving about hour and a half late.

end of an era for another airline.

 

[Purebeef]

They will be back.

 

[Aviador]

They will be back.

Cryptic message? Or just your belief?

 

[Ray Finkle]

I don't think that the door has been permanently shut.

 

[jfy1999]

Not BHX related but Air Iceland Connect will be pulling out of Aberdeen and Belfast, so Orion's post above on the ABZ passenger numbers has seemingly turned out to be prophetic.

Looking at the airlines that have dropped or reduced BHX, in the case of American, United, Norwegian, Vueling and now Icelandair it has turned out to be part of a wider trimming of UK operations - so we're not the only ones suffering...

 

[oriona300]

Yeah my crystal ball was working then .

 

[58terminus]

Looking at the airlines that have dropped or reduced BHX, in the case of American, United, Norwegian, Vueling and now Icelandair it has turned out to be part of a wider trimming of UK operations - so we're not the only ones suffering...

And hopefully they will come to regret it.