Racedo,
A year of standing still.
What rubbish? Let's look at facts instead of bold statements:
- Total revenue up 2.3% year on year with average fare revenue per seat up 2.0%
- Effective network capacity management resulted in load factor climbing 0.7 points to 78.4% with increases achieved on both short and long haul services
- Very strong long haul performance with revenue up 11.1%, passengers numbers up 12.2% and load factor up 0.6 points on increased capacity of 11.6%
- Short haul revenue down 3.3% due to extremely good weather in Ireland and Northern Europe in the peak Summer period and increasingly competitive pricing environment in Q3 and Q4 2013. Capacity managed tightly to protect margins
- Operating profit, before net exceptional items, of €61.1 million is in line with stated guidance
- Continued balance sheet strength: gross cash of €897.4 million at year end and an 11.4% increase in net cash to €419.8 million
- Proposed dividend of four cent per share for 2013 is in line with prior year. Expected maintaining of dividends at this annual level for the foreseeable future.
As has been pointed out the introduction of the Cost Optimisation and Revenue Excellence (CORE) programme will drive down costs by a further €30m over the next financial 2 years by driving 3 parameters;
- Cost and business optimisation.
- Enhancing revenues by focusing on merchandising, retail revenue and business-to-customer distribution system.
- Further improvements in staff engagement, training, flexibility and productivity.
Looking at the operations side of Aer Lingus in 2013;
- Profitable expansion of L/H operations through the re-deployment of an additional A330 aircraft allowing an increase in frequency on Dublin to Boston and Chicago services. This additional capacity was fully sold.
- Successful launch of contract flying business: “Little Red” domestic UK services on behalf of Virgin Atlantic and L/H service from Scandinavia to the Caribbean for the tour operator Novair.
- New and expanded codeshare agreements with United Airlines and Air Canada.
- New retail initiatives such as pre-order, enhanced and refreshed meal offerings on short haul and long haul services, wi-fi on our transatlantic services and new checked baggage options.
- Planned L/H expansion in 2014 with new services to Toronto and San Francisco and increased frequency on services from Shannon to Boston and New York. Seat capacity up by 20% facilitated by the damp lease of three Boeing 757 aircraft from ASL Aviation Group.
Statistics side of 2014,
An increase in net cash of 11.4% from 376.9m to 419.8m. Decrease in gross bebt by 10.2%. As well as this revenue, free cash flow, AFRPS and AFRPP are all up.
In a year where S/H demand dropped for all S/H operators in Ireland/UK during the latter stages of 2013, this is an excellent result in performance.
Aer Lingus issued one profit warning, its largest competitor had to issue two and change its business model. Solid performance.
Regarding the pressing issues, doing the rounds now that SIPTU bosses are more or less set on the new pension plan, those with plus 30 years of service pensions are being scrutinised as we speak. With regards the gov intervening in any such dispute which is far from guaranteed, not a chance will it happen - This the same gov which is prancing on egg shells with recent revelations, intervening in a public company's dispute regardless of its holding would be union suicide.
It does of course also say that nothing has been included in respect of Pilot Scheme
More or less has been sorted, negotiations took place pre-xmas, final negotiations taking place any day now - all parties were in agreement at the last meeting.
I'll finish with this, 2013 was challenging and Aer Lingus met the challenge head-on - As it will do in 2014. Staff and Management are in agreement more costs can be cut, and they will - The airline still operates with some of the highest margins per seat in Europe. The argument Racedo is trying to present is nonsensical and honestly nothing more then rubbish, with the usual post ''standing still'' blah blah blah, it's as if you invested a lot with your buddy's in FR at the same time. I'd hate to see his views on a successful airline, oh wait...
