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Old 12th Mar 2020, 07:38
  #855 (permalink)  
SWBKCB
 
Join Date: Apr 2003
Location: Northumberland
Posts: 8,570
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As these, what are small airlines, announce all these new routes, money will be flying out the door. The biggest issue facing almost all businesses is cash flow. It is what brings most businesses down, lack of it. Money flying out the door before money starts coming in. And then, is that money coming in profitable? These two airlines are expanding at a serious rate, I hope they know what they are doing. And before you have a go at me, plenty of businesses far bigger than these two have failed due to cash flow. Don't assume those at the top know what they are doing, evidenced by plenty of other businesses that have gone.
Let's look at what LM and Eastern are actually doing - as reported by Saabdriver on the Loganair thread

A shedload of under-performing routes have been taken out in the last two months - NWI/MAN, EMA/BRU, GLA/SEN, ABZ/SEN, NCL/BRU - frees up five E135/145s in all.
So they've merely moved resource from poorly performing routes. The new routes launched are mostly (if not all) from existing bases. Hardly profligate.

For Eastern, they've re-instated the leases of two a/c which have been parked up for months - so probably not expensive - and are making better use of the the two under-utilised EMB-145's. A new booking engine, yes.
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