kuningan
29th Apr 2003, 00:40
From today's Guernsey Press:
Flybe needs fees cut
by Carl Walker
FLYBE came close to bankruptcy last year.
The news was revealed in a letter outlining why the airline recently demanded a reduction in landing fees.
Channel Islands general manager Ian Taylor (pictured) explained in the letter to the Guernsey and Jersey Transport Boards how cash injections were desperately needed to ensure the airline’s survival.
This follows Tuesday’s threat that the low-cost airline could cut the Channel Islands’ routes to Birmingham and Exeter unless landing fees in Jersey and Guernsey were reduced.
In his letter, Mr Taylor said: ‘As you may be aware, we incurred significant losses in the years 2001-2 and 2002-3, with our shareholders having to put funds into the business in order to ensure its survival.
‘Last year, the shareholders insisted that we must operate our business without the need for a further cash injection from them.
‘This required a very significant turnaround from the previous year.’
It seems from the letter that the move to create Flybe from British European was a success.
The letter concludes: ‘I am happy to report that these changes were successful and ensured the present and future viability of our business.’
However, Mr Taylor predicted that the airline was preparing itself for another year of financial deficit.
‘Flybe will report either a very small loss or might break even this financial year. The turnaround has taken a great deal of pressure off everyone involved.’
On Wednesday, the Guernsey Press revealed that the airline effectively issued an ultimatum to the Channel Islands and its transport authorities that it would pull out of less profitable routes if landing charges were not reduced.
At a London press conference, Flybe managing director Jim French said it would be a great tragedy for the islands if the year-round services disappeared.
He added that airport charges were now the biggest single cost involved in running what was Europe’s largest independent low-cost airline.
Transport Board president Mike Torode said that he had not seen any correspondence from Flybe and could not comment.
‘It will be considered at the next Transport Board meeting, which is on 6 May,’ he said. ‘It happens to be one of the occasions of the year where we are seeing Flybe anyway. We will have the discussion with them when they arrive.’
Now....question is....whether Walker family would pull plug...not too likely they've just ponied up for Q400s....or whether this is negotiating tactics over landing costs....but then again 'we're poor...we're broke...' tough sale after one of year's biggest civil aircraft orders......conspiracy...or cock up.....Ah well, look on the bright side, all those passengers not coming from Exeter or Birmingham won't clutter up that nice new empty terminal building...if the contractors can get on with building it, rather than slagging each other off in public....and some people think Guernsey is dull!!!
[SIZE=3][SIZE=1]
Flybe needs fees cut
by Carl Walker
FLYBE came close to bankruptcy last year.
The news was revealed in a letter outlining why the airline recently demanded a reduction in landing fees.
Channel Islands general manager Ian Taylor (pictured) explained in the letter to the Guernsey and Jersey Transport Boards how cash injections were desperately needed to ensure the airline’s survival.
This follows Tuesday’s threat that the low-cost airline could cut the Channel Islands’ routes to Birmingham and Exeter unless landing fees in Jersey and Guernsey were reduced.
In his letter, Mr Taylor said: ‘As you may be aware, we incurred significant losses in the years 2001-2 and 2002-3, with our shareholders having to put funds into the business in order to ensure its survival.
‘Last year, the shareholders insisted that we must operate our business without the need for a further cash injection from them.
‘This required a very significant turnaround from the previous year.’
It seems from the letter that the move to create Flybe from British European was a success.
The letter concludes: ‘I am happy to report that these changes were successful and ensured the present and future viability of our business.’
However, Mr Taylor predicted that the airline was preparing itself for another year of financial deficit.
‘Flybe will report either a very small loss or might break even this financial year. The turnaround has taken a great deal of pressure off everyone involved.’
On Wednesday, the Guernsey Press revealed that the airline effectively issued an ultimatum to the Channel Islands and its transport authorities that it would pull out of less profitable routes if landing charges were not reduced.
At a London press conference, Flybe managing director Jim French said it would be a great tragedy for the islands if the year-round services disappeared.
He added that airport charges were now the biggest single cost involved in running what was Europe’s largest independent low-cost airline.
Transport Board president Mike Torode said that he had not seen any correspondence from Flybe and could not comment.
‘It will be considered at the next Transport Board meeting, which is on 6 May,’ he said. ‘It happens to be one of the occasions of the year where we are seeing Flybe anyway. We will have the discussion with them when they arrive.’
Now....question is....whether Walker family would pull plug...not too likely they've just ponied up for Q400s....or whether this is negotiating tactics over landing costs....but then again 'we're poor...we're broke...' tough sale after one of year's biggest civil aircraft orders......conspiracy...or cock up.....Ah well, look on the bright side, all those passengers not coming from Exeter or Birmingham won't clutter up that nice new empty terminal building...if the contractors can get on with building it, rather than slagging each other off in public....and some people think Guernsey is dull!!!
[SIZE=3][SIZE=1]