Comair Flies Low
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Comair Flies Low
Hi,
Comair branch of British Airways saw its earnings drop by R37-m in the year to June 2003, moving from a profit of R15-m last year into a loss of R22-m. Shareholders were expecting the dismal numbers, however, following a warning from the group in July, and the share price added more than 3% on Tuesday to close at 96 cents.
Source: Moneyweb.
BAe 146-100
Comair branch of British Airways saw its earnings drop by R37-m in the year to June 2003, moving from a profit of R15-m last year into a loss of R22-m. Shareholders were expecting the dismal numbers, however, following a warning from the group in July, and the share price added more than 3% on Tuesday to close at 96 cents.
Source: Moneyweb.
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Hi, from the IOL Business Report website. I'm not sure where the R22m loss occured.
Cheers
BA/Comair keeps us in the dark
September 3, 2003
By Audrey d'Angelo
Cape Town - British Airways/Comair has again given no clue to the contribution of its wholly owned subsidiary, kulula.com, to its results for the year to June.
The no-frills airline, which is believed to have taken passengers from all its competitors, including Comair itself, did not have its results separated from those of its parent company Piet van Hoven, the managing director of the group, said yesterday that the domestic flight market was overtraded, putting pressure on yields and passenger loads.
Operating margins had been tight, with cost fluctuations linked to exchange rates and high fuel costs.
"Jet fuel accounts for about 25 percent of the company's total operating costs while about 45 percent are linked directly to the rand/dollar exchange rate.'
However, Van Hoven said: "We have no US dollar exposure on any of our aircraft."
The airplanes were leased under an agreement structured by a South African bank with payments made in rands.
Despite the difficult conditions, BA/Comair maintained its operating profit at R11.9 million before exceptional items.
Headline earnings a share were 6.5c and a dividend of 2c a share will be paid. Revenue grew 7 percent to R1.3 billion. Cash generated by operations was strong at R66.7 million, adding to a cash balance of R168 million at year-end.
Comair closed 3c up at 96c in Johannesburg yesterday.
www.iol.co.za
Cheers
BA/Comair keeps us in the dark
September 3, 2003
By Audrey d'Angelo
Cape Town - British Airways/Comair has again given no clue to the contribution of its wholly owned subsidiary, kulula.com, to its results for the year to June.
The no-frills airline, which is believed to have taken passengers from all its competitors, including Comair itself, did not have its results separated from those of its parent company Piet van Hoven, the managing director of the group, said yesterday that the domestic flight market was overtraded, putting pressure on yields and passenger loads.
Operating margins had been tight, with cost fluctuations linked to exchange rates and high fuel costs.
"Jet fuel accounts for about 25 percent of the company's total operating costs while about 45 percent are linked directly to the rand/dollar exchange rate.'
However, Van Hoven said: "We have no US dollar exposure on any of our aircraft."
The airplanes were leased under an agreement structured by a South African bank with payments made in rands.
Despite the difficult conditions, BA/Comair maintained its operating profit at R11.9 million before exceptional items.
Headline earnings a share were 6.5c and a dividend of 2c a share will be paid. Revenue grew 7 percent to R1.3 billion. Cash generated by operations was strong at R66.7 million, adding to a cash balance of R168 million at year-end.
Comair closed 3c up at 96c in Johannesburg yesterday.
www.iol.co.za
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737-300's For Comair
Hi,
Johannesburg - Comair Limited operating as British Airways has announced that it will be acquiring three Boeing 737- 300 aircraft for R200m from Qantas Airways, the Australian airline.
The aircraft scheduled for monthly delivery in August, September and October 2003 will be replacing three of the airline's existing B737-200 aircraft as a part of its ongoing fleet replacement strategy.
The financing for the stage 3 noise compliant aircraft is being arranged by Investec Bank; with the first B737-300 - painted in British Airways livery - taking to the South African skies at the beginning of September.
Commenting on the new addition to the fleet, Comair Limited managing director, Piet van Hoven said: "As a replacement for the 737-200's, the forward-looking 737-300 offers more seats, better performance and fuel economy thus assisting us in reducing the exposure to fuel price fluctuations.
"In addition to better operating efficiencies and a much longer range than our existing fleet, the quietness of the aircraft engines was also one of the main considerations when we acquired the aircraft, as noise abatement regulations are imminent."
The 116-seater Boeing 737-300 offers a multitude of operator advantages beyond simply improving range and saving fuel. Environmental benefits include reduced noise on takeoff and landing, decreased engine emissions in flight and reduced engine maintenance requirements.
In addition to reliability, simplicity and economy in operation, the aircraft offers digital technology on the flight deck. These electronic systems provide concise flight information and reduce the crew's workload when landing the aircraft in bad weather.
British Airways (Domestic) pilots will undergo the cross training for the 737-300's at the company's local flight simulator centre to be ready for the first addition of the new aircraft in September.
The 33.4 metre-long aircraft, with a tail height of 11.1 metres and wingspan of 28.9 metres also offers roomy interiors, large overhead stowage bins for carry-on baggage, leather seats throughout the cabin and a total useable cargo volume of 30.23 m with the freight hold being accessible from the ground.
BAe 146-100
Johannesburg - Comair Limited operating as British Airways has announced that it will be acquiring three Boeing 737- 300 aircraft for R200m from Qantas Airways, the Australian airline.
The aircraft scheduled for monthly delivery in August, September and October 2003 will be replacing three of the airline's existing B737-200 aircraft as a part of its ongoing fleet replacement strategy.
The financing for the stage 3 noise compliant aircraft is being arranged by Investec Bank; with the first B737-300 - painted in British Airways livery - taking to the South African skies at the beginning of September.
Commenting on the new addition to the fleet, Comair Limited managing director, Piet van Hoven said: "As a replacement for the 737-200's, the forward-looking 737-300 offers more seats, better performance and fuel economy thus assisting us in reducing the exposure to fuel price fluctuations.
"In addition to better operating efficiencies and a much longer range than our existing fleet, the quietness of the aircraft engines was also one of the main considerations when we acquired the aircraft, as noise abatement regulations are imminent."
The 116-seater Boeing 737-300 offers a multitude of operator advantages beyond simply improving range and saving fuel. Environmental benefits include reduced noise on takeoff and landing, decreased engine emissions in flight and reduced engine maintenance requirements.
In addition to reliability, simplicity and economy in operation, the aircraft offers digital technology on the flight deck. These electronic systems provide concise flight information and reduce the crew's workload when landing the aircraft in bad weather.
British Airways (Domestic) pilots will undergo the cross training for the 737-300's at the company's local flight simulator centre to be ready for the first addition of the new aircraft in September.
The 33.4 metre-long aircraft, with a tail height of 11.1 metres and wingspan of 28.9 metres also offers roomy interiors, large overhead stowage bins for carry-on baggage, leather seats throughout the cabin and a total useable cargo volume of 30.23 m with the freight hold being accessible from the ground.
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Last edited by BAe 146-100; 3rd Sep 2003 at 21:54.
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???
Ok so there's one chap saying that Comair have made a loss and one saying they have made a profit. Perhaps the quote of the original poster made allowances for the cost of aquiring the 733s from Qantas.
I seem to recall SAA claiming to have made a profit a few years ago when all they did were sell off a few aircraft. I guess what would be revealing is to see what operating profit they made and a break down for Kalula would be nice to see.
Are the drivers of the 732s able to fly the 733s and 734s given the performance differences and EFIS etc?
I seem to recall SAA claiming to have made a profit a few years ago when all they did were sell off a few aircraft. I guess what would be revealing is to see what operating profit they made and a break down for Kalula would be nice to see.
Are the drivers of the 732s able to fly the 733s and 734s given the performance differences and EFIS etc?
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The initial plan was for the 733 to replace the old basics which are still in service. It now seems as if one will remain in the short term to act as stand-by for new routes.
90% of pilots will fly 732, 733 and 734. 10% will fly 732 and the basic.
Why do we operate three types- because we can!
90% of pilots will fly 732, 733 and 734. 10% will fly 732 and the basic.
Why do we operate three types- because we can!
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Go Vis!!Have you looked at the past 5 or 6 years of Comair?
The company had 3 x Basic's; 2x Adv 732's and 1x "Confuser" (ZS-NLN now V5-ANA) a near basic with JTAD-17's on! And a few 727's that was it. The pilots totaled 52 and OPS was on the "wrong side " the airport.
Five years later Comair (sadly) operates no more 727's BUT....
**Still the basic's at present - making good money and paid for!
**10 x 732 adv a/c from ZS-NNG to ZS-SIN
**3 x 734's and the first 733 is in RSA NOW !!
New OPS bulidings are in operation and so is the simulator centre ( previously the training all had to be done in the UK)
** Pilots now total about 130!
If u look at the facts and expantion over this time ..... do you expect Comair to make money too?? Hell yes....We ARE!!
Just thinking out loud!! But I believe the facts speak for ... Comair!
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Profit or loss
George Tower - if you read the 2nd posting re Comair's results (the one posted by Goblin) you'll see it reads "made R11 million operating profit, before exceptionals".
As any accountant will tell you, that's not the same thing as making a profit, meneer.
As any accountant will tell you, that's not the same thing as making a profit, meneer.
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Comair Confusion
I still can't work out why Comair competes with itself; many of the routes flow by BA Comair are flown by kalula as well, both Comair operations. Often parking next to each other and operating at similar times. Unless it is a way of sticking it to BA, which would seem strange as without the BA franchise Comair would not be what it is today. Also when the 737-400’s arrived from BA UK some time ago they where used as 727 replacements and operated on the BA franchise routes, saved on having to paint them anyway. Now they are painted in the colours of and operated by kalula, a big fanfare about 300’s coming with no mention of the fanfare that was made when the 400’s arrived ages ago. All the franchise routes use the 200’s at the moment. Some creative accounting going on perhaps…………
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Kulula and Comair whats the problem
This post is particularly for Tailspin and THH.
Kulula is +/- 3 years old. In that time they have gone from having 1 x B727 doing the FACT-FAJS run to having upped their frequencies and massively expanded their routes so that FADN, FAPE, and FAGG are now served from FAJS and also a FACT-FADN service as well. Now that is what I call a healthy rate of expansion.
If Comair is so bad for Kulula as both of you seem to intimate then how much more routes/frequencies do you think they should be flying. The market in SA simply isn't as big as that of the UK and western europe to expect them to perform like Easyjet, Go and Ryanair.
In having the BA franchise and Kulula, Comair has covered both ends of the market reasonably successfully so it seems. As an analogy consider the differences between a restaurant such as Blues in Cape Town and the Spur. Both are successful businesses serving good food but one is the kind of place you'd go for culinary excellence the other if you just couldn't be arsed cooking and fancied a filling meal.
Who knows what the future will hold but I'm pretty sure that the low cost end of the market will show the most growth but I still fail to see why that will be a problem for Comair. On the contrary I think it will be good news but bad news for SAA and Nationwide. We should also remember that Comair's expansion has been due in no small part to them having the BA franchise.
Kulula is +/- 3 years old. In that time they have gone from having 1 x B727 doing the FACT-FAJS run to having upped their frequencies and massively expanded their routes so that FADN, FAPE, and FAGG are now served from FAJS and also a FACT-FADN service as well. Now that is what I call a healthy rate of expansion.
If Comair is so bad for Kulula as both of you seem to intimate then how much more routes/frequencies do you think they should be flying. The market in SA simply isn't as big as that of the UK and western europe to expect them to perform like Easyjet, Go and Ryanair.
In having the BA franchise and Kulula, Comair has covered both ends of the market reasonably successfully so it seems. As an analogy consider the differences between a restaurant such as Blues in Cape Town and the Spur. Both are successful businesses serving good food but one is the kind of place you'd go for culinary excellence the other if you just couldn't be arsed cooking and fancied a filling meal.
Who knows what the future will hold but I'm pretty sure that the low cost end of the market will show the most growth but I still fail to see why that will be a problem for Comair. On the contrary I think it will be good news but bad news for SAA and Nationwide. We should also remember that Comair's expansion has been due in no small part to them having the BA franchise.
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What we should be talking about is not "Is Kulula bad for Comair?", but "Is Comair bad for Kulula?"
Kulula won't be able to fulfil it's potential as long as it's part of Comair!
Kulula won't be able to fulfil it's potential as long as it's part of Comair!
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Hi,
I agree with you T Hairy Henry.
Kulula Goes Global!
Travel agents will be able to book, price and confirm seats which were only bookable online and through kulula.com.
BAe 146-100
What we should be talking about is not "Is Kulula bad for Comair?", but "Is Comair bad for Kulula?" Kulula won't be able to fulfil it's potential as long as it's part of Comair!
Kulula Goes Global!
Travel agents will be able to book, price and confirm seats which were only bookable online and through kulula.com.
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THH
Its about time that offered backed up your cliam that "Comair is bad for Kulula" with some reasoning.
146
I think the chances of Kulula going global are slim.
1. It hasn't happened in Europe - easyjet, ryanair fly short sectors around western europe. Not even after the collapse of transatlantic market post 9/11 did they try to have a go.
2. Fact is from a pax point of view you can stick no frills for short trips but anything more than 3 hour flights I'd say that the public want a full service.
3. Easyjet and Ryanair cannot be booked through travel agents - thats one of the savings they make as they don't have to pay comission to travel agents.
If Kulula was divorced by Comair there are numerous expenses that they would incur from having to set up a new crewing department, recurrent training, new finance departments, new HR departments, new maintenance contracts, etc.
Its about time that offered backed up your cliam that "Comair is bad for Kulula" with some reasoning.
146
I think the chances of Kulula going global are slim.
1. It hasn't happened in Europe - easyjet, ryanair fly short sectors around western europe. Not even after the collapse of transatlantic market post 9/11 did they try to have a go.
2. Fact is from a pax point of view you can stick no frills for short trips but anything more than 3 hour flights I'd say that the public want a full service.
3. Easyjet and Ryanair cannot be booked through travel agents - thats one of the savings they make as they don't have to pay comission to travel agents.
If Kulula was divorced by Comair there are numerous expenses that they would incur from having to set up a new crewing department, recurrent training, new finance departments, new HR departments, new maintenance contracts, etc.
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Hi,
I meant that Kulula has gone "global" because people from all over the world can book Kulula's flights via travel agents.
Thanks
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I think the chances of Kulula going global are slim.
Thanks
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1. It hasn't happened in Europe - easyjet, ryanair fly short sectors around western Europe. Not even after the collapse of transatlantic market post 9/11 did they try to have a go.
Look at your own question 2 for the answer to this one. Also anything over 3.5 hours means the A319's & B737 start to lose their cost efficiencies.
2. Fact is from a pax point of view you can stick no frills for short trips but anything more than 3 hour flights I'd say that the public want a full service.
easyJet's longest sector is 3.5 hours between Athens and London. Jo'burg and Cape Town are not the only options for Kulula bases .
3. Easyjet and Ryanair cannot be booked through travel agents - that's one of the savings they make as they don't have to pay commission to travel agents.
Correct.
If Kulula was divorced by Comair there are numerous expenses that they would incur from having to set up a new crewing department, recurrent training, new finance departments, new HR departments, new maintenance contracts, etc.
....yes but image the cost savings that they could made by moving away from the high cost infrastructure that Comair has in place, and only paying for the products that they actually use!!
Look at your own question 2 for the answer to this one. Also anything over 3.5 hours means the A319's & B737 start to lose their cost efficiencies.
2. Fact is from a pax point of view you can stick no frills for short trips but anything more than 3 hour flights I'd say that the public want a full service.
easyJet's longest sector is 3.5 hours between Athens and London. Jo'burg and Cape Town are not the only options for Kulula bases .
3. Easyjet and Ryanair cannot be booked through travel agents - that's one of the savings they make as they don't have to pay commission to travel agents.
Correct.
If Kulula was divorced by Comair there are numerous expenses that they would incur from having to set up a new crewing department, recurrent training, new finance departments, new HR departments, new maintenance contracts, etc.
....yes but image the cost savings that they could made by moving away from the high cost infrastructure that Comair has in place, and only paying for the products that they actually use!!
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Still not convinced
146,
I have to say its frustrating trying to book stuff in SA using a British credit card - my guess is that's something to do with either foreign exchange regulations or trying to charge johnny foreigner more money.
THH
I suppose you have a point if you want to base yourself on Ryanair - For an airline with more planes than SAA their customer service department consists of two people neither of whom you can talk to. Pilots have to pay £50 for the privaledge of submitting their CV. Times are hard and Ryanair have certainly used the excuse to chop their overheads - will be interesting to see what happens in 5 years time when air travel picks up and the large number of 50 year old pilots start retiring.
So would do you propose to pay the pilots less, the cabin crew and engineers less? What do you propose to do about recurrent training? Give me an example of what Kulula is paying for and not using?
So far you haven't identified what other routes you have earmarked for Kulula. I reckon they could look at serving Windhoek and Bloemfontein. But again returning to my initial point - in the last three years they had 1x 727 doing one route now they fly five routes with increased frequencies and have a more modern fleet.
I think one of the key factors in Comair/Kulula growth will be what the SA Government decide to do with SAA. At the moment it must be remembered that Comair/Kulula's main opposition is a loss making state monolith being supported by the SA tax payer which is hardly fair competition but SAA is whole new hornets nest.
I have to say its frustrating trying to book stuff in SA using a British credit card - my guess is that's something to do with either foreign exchange regulations or trying to charge johnny foreigner more money.
THH
I suppose you have a point if you want to base yourself on Ryanair - For an airline with more planes than SAA their customer service department consists of two people neither of whom you can talk to. Pilots have to pay £50 for the privaledge of submitting their CV. Times are hard and Ryanair have certainly used the excuse to chop their overheads - will be interesting to see what happens in 5 years time when air travel picks up and the large number of 50 year old pilots start retiring.
So would do you propose to pay the pilots less, the cabin crew and engineers less? What do you propose to do about recurrent training? Give me an example of what Kulula is paying for and not using?
So far you haven't identified what other routes you have earmarked for Kulula. I reckon they could look at serving Windhoek and Bloemfontein. But again returning to my initial point - in the last three years they had 1x 727 doing one route now they fly five routes with increased frequencies and have a more modern fleet.
I think one of the key factors in Comair/Kulula growth will be what the SA Government decide to do with SAA. At the moment it must be remembered that Comair/Kulula's main opposition is a loss making state monolith being supported by the SA tax payer which is hardly fair competition but SAA is whole new hornets nest.