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Old 7th August 2007 | 09:38
  #120 (permalink)  
VR-HFX
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Joined: Apr 2002
: PPL
Posts: 734
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From: Australia
Cpt Undies

Perhaps my choice of financial terminology was not precise enough.

Any sector can be cash positive if the pax revenue exceeds outgoings for that journey.

The big hole is start up and capital costs and how you account for support costs.

Currently they have two routes, 7 a week to LGW and 6 a week to YVR. 3 a/c plus committments on 3 more ex All Nippon.

With the fares they are charging and their seat mile costs and the time to critical mass it is only a matter of time before they become another Air HK.

This is a hard cruel game and there aren't many airports you can put a 744 into that will pay you land there a la Michael O'Leary.

FWIW
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