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Old 11th May 2008, 10:46
  #806 (permalink)  
CheekyVisual
 
Join Date: Aug 2000
Location: UK
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Whilst Baby is it's own boss it won't pull out of CWL. Where would it go ? There is heavy competition everywhere in the UK and most of europe. Airlines chop and change routes all of the time expecially if they have limited resources. It's simple supply and demand with the rising cost of fuel there has got to be really high demand to make any money. GDN looked like a good bet due to the Polish influx BUT it obviously didn't prove that popular so Baby decided to look elsewhere for demand and from CWL that will be the MED where it always has been ! It wouldn't surprise me if some of the domestic stuff was quietly left to Fly Be who operate the right aircraft for the routes (Q400).

In any case no one really knows whether Baby makes any money or not. No seperate accounts are produced for consumption even within the group. I've learned from previous experience that the bean counters can make any result appear how they want it to appear. A profitable base can be made to look unprofitable if it wants it closed or assets relocated. Happened at a previous company because it suited the parent company's long term aims.

So any speculation that Baby makes heavy losses is just that speculation. That is not the feeling within the group. One thing is for sure SMB plays his cards very close to his chest and where the money comes and goes is only known to him and a few very senior people. Even if the airline makes an operational loss it may make enough money for "the group" (who owns the planes ? mmm...) to keep it going for sometime yet and CWL is a good base even if the routes have to be chopped and changed to keep it profitable. Someone said PRG needs to be reinstated. WHY ? If it made any money it would still be operating, sorry harsh fact of life. As I keep saying it has NOTHING to do with loadfactor YIELD is everything ! No YIELD no route. Even if another airline took it on to make money they would have to do it with much cheaper aircraft and much cheaper fuel, highly unlikely. I know for a fact this route has been looked at by others who have all reached that conclusion.

The whole aviation industry runs on a daily dose of rumour and speculation ! What else would we talk about for a 12 hour duty ! Remember most of it is just that. If you think about the stuff that actually ends up happening it's the stuff there's been little rumour or speculation about. The people that really known just don't put it out there !
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