Originally Posted by
tubby linton
The Jet2 expansion and diversification in the current market worries me. It smacks of desperation and pursuing any market to ensure survival. This is going to be a sea change for them as they are going to have to start paying real money for new aircraft which is something they have never done. Phillip Meeson made his initial money importing used cars and he has done the same with his aircraft. He has been very sharp by buying worthless aircraft and finding a market for them to exploit. How he will manage paying lease rates on new aircraft will be an interesting time, though I would imagine his standing in the city for success may deflect some of the pain in the short term.
I do not think this is smacks of desperation at all and i don't understand how you could even suggest/come to that conclusion when the company recently announced a profit of £105,000,000 and revenue at £1,405,400,000 for year ending 2016. They clearly have done their research and research well. The company is now coming out of a phase of slow expansion and consolidation at it's bases, streamlining the business and is ready for expansion, as the figures for the year ending 2016 clearly highlight.
The company has a great working relationship with MAG and now will operate for year 2017 out of 3 of it's airports. This relationship is probably similar to the healthy relationship Ryanair share with the MAG group too and therefore i believe Jet2 will share a happy medium with Ryanair at STN. After all, Ryanair have a large presence at EMA and MAN yet both seem to find a happy medium at both. Furthermore they both each know sell completely opposite products - Ryanair seat only, Jet2 - hybrid tour operator/seat only. Jet2 will offer much needed competition to Ryanair in terms of customer service (Ryanair are offering much better these days in terms of levels of service).
This is much needed and welcomed competition at STN - you look at the current offering by IT operators and it's nothing more then shocking by Thomson (even though they have LTN down the road) and Thomas Cook (may offer more but some of there times are ridiculous after all i know i don't want to got to TFS at 7 at night) where as Jet2 will offer much friendlier flight times to customers, and more flexibility. They will offer the competition to Ryanair and easyJet and after all it is their first natural progression further south then BHX.
Jet2/Holidays has grown into a considerable force within the holiday markets, now has much more bargaining power then the traditional TUI/Thomas cook operators in some destinations and is a force to be reckoned with. It's about time people like yourself come out from your cave and realised that Jet2 is no longer the new kid on the block but a much bigger operator then Monarch/Thomas cook. (they've made much better profits then those two combined this year)
I am personally happy that not only a British company, but a Yorkshire company, is showing signs of healthy and continued expansion, consistent profit but most of all delivering much needed employment. Personally i think it's well done Jet2/MAG/STN on this deal.
Originally Posted by
HeartyMeatballs
And the worry is once they realise there are better yields in the south their borers bases could suffer. If I was in charge and I could make an extra few pound for each bum on a seat then I'd do it.
For me my concern is the change in the model. Previous winters had most of the fleet sat dormant which is great when the aircraft are of a certain vintage and are paid off. The problem now is that this is no longer an option.
I know the program is busier over the winter, and the summer season increasing, but there's still a good few months where they would be better off just sat on the ground. But not that will be costing money in financing the new planes.
I don't think the northern bases will suffer. Yes maybe there won't be the new routes from their bases initially (e.g. Skiathos, as an example route, maybe launched from MAN/STN to test the market rather then MAN/GLA etc) but they will be launched the following year. And i also think North of the border EDI got much needed 737-800 and a holidays network this year that next year for 2018 they will announce a further based 737-800 and new routes/added frequencies. Jet2 don't neglect bases like certain companies (Monarch, Thomson, Thomas cook) and will continue to expand all be it probably more cautiously from it's northern quieter bases.
I agree with winter point - however i do think that the company is fully aware of this situation and is doing all it can to minimise the effect it has on the finances. I also think egypt is helping in terms of Canaries demand.