Thread: Flybe-9
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Old 23rd Nov 2018, 10:09
  #1090 (permalink)  
Join Date: Oct 2005
Location: Leeds, UK & Cork, Ireland
Posts: 895
Originally Posted by True Blue View Post
Most on here talk about the idea that Flybe will reduce in size under a new owner, concentrate on the most profitable routes. I agree that is what is most likely to happen. Why can't they do that themselves if that is what needs to happen? Why do they need a new owner to make that happen?
It could happen, but flyBe might find raising capital difficult and/or very expensive due to the share price. Being part of the wider AF/KL/VS/DL structure would help there. I don't understand the strategy for Virgin. From March 19 flyBe will have no operations at LGW, but will serve ABZ/EDI/NQY from LHR, there will be connection opportunities at MAN, which might be helpful. I don't think that any airline has successfully shrunk to profitability. Excising expensive aircraft and property and matching overheads to revenue realities are necessary. But flyBe does not have a vision for the kind of airline it wants to be.

Some posters have mentioned that flyBe should more actively seek ACMI operations - they operate ATR's for SAS and previously operated for Finnair and Brussels Airlines. Im not sure that there is a high market for this in Europe, as there is in the US. The markets are very different. easyJet with the A32x and Ryanair with 737s have bypassed a lot of hubs and lowered fares. That makes operating thin routes solely for connections a difficult financial proposition and may explain why flyBe extensively codeshares with hub airlines like AF/KL/EI where it flies into their hub, rather than have extensive ACMI operations. ACMI and own brand flying are not mutually exclusive and flyBe could well operate all their UK routes as "Virgin Atlantic" and continue to explore the ACMI market.
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