Flybe - 8
Join Date: Apr 2012
Location: South Wales
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No wonder the RH MLG collapsed, that was a severely hard landing on the RHS, those Dash's aren't meant for that. Something that we see relatively often nowadays. Doris is playing havoc.
Flybe predicts small annual loss as tough conditions continue | Airline Financials content from ATWOnline
Given that the UK economy is in pretty good health right now and airlines all over the UK and western Europe are making strong profits, I really don't understand why Flybe is making a loss. I really do hope that when the economy next weakens (and it will do eventually), that Flybe has got its act together
Given that the UK economy is in pretty good health right now and airlines all over the UK and western Europe are making strong profits, I really don't understand why Flybe is making a loss. I really do hope that when the economy next weakens (and it will do eventually), that Flybe has got its act together
Join Date: Aug 2016
Location: Oban, Scotland
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Domestic PAX from EDI/GLA have been static at best, presumably because of the continued growth of direct flights has reduced the demand for feeders to, say, MAN. And if a route to, say, a French regional airport, becomes popular, ie profitable, then FR or EZY will jump in. They get squeezed.
Last edited by inOban; 29th Mar 2017 at 22:32. Reason: typo
Flybe predicts small annual loss as tough conditions continue | Airline Financials content from ATWOnline
Given that the UK economy is in pretty good health right now and airlines all over the UK and western Europe are making strong profits, I really don't understand why Flybe is making a loss. I really do hope that when the economy next weakens (and it will do eventually), that Flybe has got its act together
Given that the UK economy is in pretty good health right now and airlines all over the UK and western Europe are making strong profits, I really don't understand why Flybe is making a loss. I really do hope that when the economy next weakens (and it will do eventually), that Flybe has got its act together
Join Date: Jul 2015
Location: Manchester, UK
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Two things in play here I suspect. First firming of the oil price, which may have hit them if they had failed to hedge forward; and second the fall in value of sterling which will not only have had an effect of existing revenues, but may be beginning to impact on future bookings - for example second property owners in France making fewer, longer trips, rather than going backwards and forwards more frequently at weekends.
As for the UK economy being in good health. It isn't as clear cut as the GDP in £ numbers make it seem. Looking at the value of GDP in some other currencies will see a drop in GDP over the last year. Conversely if you look at the value of the US economy in GBP it has grown a lost faster than the UKs. Even in $PPP the UK isn't as strong as the headline figure. I haven't looked at the numbers recently, but I seem to recall the GDP:GNP ratio has shifted quite a bit, which is often a sign of underlying weakness. It remains to be seen where this will lead, but it looks like the North Atlantic market is really beginning to suffer, especially for the areas outside of London.
The railways are taking more and more domestic traffic now as journey times are speeding up
And if a route to, say, a French regional airport, becomes popular, ie profitable, then FR or EZY will jump in. They get squeezed.
Business travel should be riding high at the moment, so a real concern that they can't make money even in the current environment, although I do appreciate there are many factors in play, as others have described above.
Join Date: Aug 2016
Location: Oban, Scotland
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1. It's not speed but frequency. Between both GLA and EDI there are usually three flights per day to MAN. (There are no GLA - MAN flights on a Saturday). Train is every hour alternately. I suspect that most MAN PAX from Scotland either take a coach or drive - whenever I'm in Tebay services there always seem to be holiday groups.
2. The future of the UK is meant to be global, so we have to make clear that the economy of the UK shrank by 10% overnight last June.
3. Why should business traffic be riding high at the moment?
2. The future of the UK is meant to be global, so we have to make clear that the economy of the UK shrank by 10% overnight last June.
3. Why should business traffic be riding high at the moment?
Join Date: Jun 2015
Location: Soon to be out of the EU.
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The value of the pound and economy fell with the pound.
GDP is up, investment is up, no sign of a recession or depression, airlines are making money, shops are making money, car production and purchasing is up, tourist numbers are up, house prices are up, employment is at record highs, CPI is steady and has been positive.
So, I ask, why shouldn't business traffic be riding high at the moment?
GDP is up, investment is up, no sign of a recession or depression, airlines are making money, shops are making money, car production and purchasing is up, tourist numbers are up, house prices are up, employment is at record highs, CPI is steady and has been positive.
So, I ask, why shouldn't business traffic be riding high at the moment?
InOban I think you must be looking at Scottish business because it is doing very well here in the
Northwest of England with house prices rocketing and jobs galour, building in the city of Manchester
is almost back to pre 2008 with about 10 buildings of over 100m and 2 of over 200m being built and
1 bedroom appartments going for upto 1/4 million
Northwest of England with house prices rocketing and jobs galour, building in the city of Manchester
is almost back to pre 2008 with about 10 buildings of over 100m and 2 of over 200m being built and
1 bedroom appartments going for upto 1/4 million
Join Date: Jan 2017
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inOban makes a good point. The rise in inflation since the Brexit vote, though still below the BofE target, is a rapid increase to what we've seen over the last few years, and will be a problem for Flybe. Prices of goods have increased, but real wages have not yet caught up to the inflation growth, meaning people are less well off in real terms. If inflation continues to rise, it'll be even harder for wages to respond, meaning real incomes will continue to fall steadily. Nominal wage growth needs to equal or exceed inflation to ensure that people's real wages are growing. Over the next few years I can't see that happening, and Flybe - as well as BA and easyJet domestic services - will suffer as a result.
Honestly, I think that most Flybe bases will see a reduction in services over the next couple of years. BHD and IOM will probably suffer the least, given that there are no viable alternatives to air transport. I wouldn't be surprised if there was a slight shift towards the European leisure market, with reduced frequencies on GB domestic routes, especially those without codeshares.
Honestly, I think that most Flybe bases will see a reduction in services over the next couple of years. BHD and IOM will probably suffer the least, given that there are no viable alternatives to air transport. I wouldn't be surprised if there was a slight shift towards the European leisure market, with reduced frequencies on GB domestic routes, especially those without codeshares.
Join Date: Jul 2015
Location: Manchester, UK
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In the short term a lot of Manchester central property values is being driven by foreign money, which means that the reduction in the cost of labour makes the property that much more attractive. Also, even the more pessimistic forecasts for the next 20-30 years say that brexit will not have a significant effect on the long-term growth trend (conversely it won't improve the long term growth trend), so if you are investing in something over that time period and you think the currency markets have over reacted now would be a great time to get into the game.
Conversely, if you have £s and need to buy stuff in $s this hurts you a lot. For many airlines fuel prices are approaching 50% of operating costs. If the pound looses 15% of it's value and all of your revenue are in £s then you need to increase your incomings by 9% just to stand still. In the case of a BA or U2 much of their revenue is in $s and €s, which helps a lot. This is showing up in locally funded construction, where the real cost is rising quite rapidly, leading to current reductions in planned activity.
I can accept that the pound's collapse last June makes life tough for an airline with £ revenues and $ costs. However every year businesses face significant challenges; despite the collapse in demand for Egypt, Turkey and Tunisia other airlines still turn a profit. A firm like Jet2 should be really hurting on this basis but they seem to be doing ok
Ultimately if a company is not making profits then it is burning capital and will eventually end up in deep trouble. So when will Flybe attain consistent profitability and just how rosy does the economy have to be ?
Ultimately if a company is not making profits then it is burning capital and will eventually end up in deep trouble. So when will Flybe attain consistent profitability and just how rosy does the economy have to be ?