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TUI / Thomson buy Coventry Airport

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Old 19th Feb 2004, 23:42
  #21 (permalink)  
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So TUI now owns an airport. I wonder if they will drop some of their IT flights from Birmingham and EMA next year and introduce IT flights from their own airport instead of using someone else’s.

As for easyyjet, they wanted to build their own terminal at LTN that in their own words resembled a bus station, the council said no.
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Old 19th Feb 2004, 23:55
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LTNman, I think you're right - the difference with Luton is that the Unitary Authority has a stake in it and felt it unwise for one of the operators to have a stake in it. Mind you the new terminal isn't the Taj Mahal which Stelios tried to portray it as before it was built. From the outside it looks like a tin shed, and the inside's not stunning.

Also Coventry isn't used by other airlines who may be upset by on of their rivals owning the infrastructure. Don't think Atlantic Airlines/Air Atlantique etc will be too worried about TUI owning it, but BHX and EMA may be!!
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Old 20th Feb 2004, 01:36
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Sorry - I cant help it - I feel I must answer "Stick Flying's" query by suggesting that he consults some elderly Lufthansa pilots.

[Apologies to Bunny (David) Gunson]

P.P.
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Old 20th Feb 2004, 01:42
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I first heard that thomsonfly were starting from CVT long before they launched to the public. Around the time the "Britannia Express" topic was hot on this board. At that time I also heard that TUI were looking into buying into the airport. So not too sure if this is a "desparate measure", perhaps more of the wider picture.

In the Cov Telegraph today a WDC spokeman said "We had lost confidence in Air Atlantique as the airport operator"... so maybe they are feeling in the right hands the airport could work. Coventry City Council also quite pro airport.

Good for TUI, good for the airport. Lets get a decent operation going here.
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Old 20th Feb 2004, 02:44
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This is a short-term panic decision if there ever was one.

First, what are the synergies between Britannia/TUI and owning CVT apart from the TOM operation? (None)
2. If it was a planned move it would have been completed more than 6 weeks in advance of the launch date.
3. There has been debate on these boards about the viability of operating 737-500s from CVT. Any hope of fully laden 757-200s?
(No)
4. HLX has not been a runaway success (its debut at LTN was little short of disastrous). TUI management can't afford any more fiascos like that!
5. In the event that TOM is successful, will CVT ever be able to be more than a minor base for a few 737s? An operation the size of EZY at LTN (14 aircraft based?) would require many more quick turn-round stands, a much larger terminal together with car parking, bus services, and a cash machine. Judging by local opposition to the current limited plans, they will only be constructed after a major battle.

Sorry to sound negative, but I'm a doubter.
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Old 20th Feb 2004, 02:58
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PP.

Sounds like an interesting tale. Red faces involved?
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Old 20th Feb 2004, 03:54
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I cannot believe everyone thinks this is going to be a disaster.
First it is now a well tried formula.
Second, do you not think one of the biggest travel companies in the world have not done their homework ?...come on. They will have the top guys in all field from accountants, architects, engineers, everyone ensuring the logistics are in place.
I think it will be, for its initial relative small size of an operation, a real success. By all accounts, it will be relatively easy, barring nonsense at planning permission, to quickly increase the size of the operation, even if that means adding a few more Portakabins and a bit more tarmac.
Watch and wait. Theres no use knocking it until its given a chance. BY have excellent relations with the larger airports and have no need to move to CVT.
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Old 20th Feb 2004, 04:30
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Why did TUI choose Coventry? It's obvious, they wish to stick the knife in the MyTravel group. Where better than to split the midlands catchment area in two as a start. TUI cannot lose, those pax they pull of EMA and BHX are only onto their own flights out of Coventry, but they will still pull many from other tour operators/loco's in the area as a bonus, but the bottom line is they know every passenger off a MYT or MYL flight out of either airport (be it loco or IT) is another nail in the coffin for MyTravel. TUI know that the demise of MyTravel has the potential to reap rewards that makes the investment in Coventry looks like small change.

Maybe if they get rid of MYT, that'll be the end of ThomsonFly - job done! Hannover 1 Manchester Utd 0.

They were well aware of the limitations of Coventry, or even of the management, they are not stupid. Most people thought EMA was the back up plan - why? TUI gain nothing!. It seems now like buying the airport was the back up plan. Maybe it was all planned, maybe they were in negotiations with the council all along to get rid of Air Atlantique - who know's! time will tell on that one.

From a marketing perspective, "there's no news like bad news!" If we all listned to the Ryanair bad press - they would have gone bancrupt a long time ago.

There's a lot more to this one than meets the eye!
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Old 20th Feb 2004, 04:52
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MyTravel, Manchester United? I think you'll find it's Rochdale, in every sense of the word!
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Old 20th Feb 2004, 05:12
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What or who is Rochdale?
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Old 20th Feb 2004, 06:09
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3. There has been debate on these boards about the viability of operating 737-500s from CVT. Any hope of fully laden 757-200s?
If you look at the fleets of the other TUI brands, Neos, Brittania (Sweden) & Hapag Lloyd, you'll notice they are quite similar. Me thinks the B752's may be replaced by 737NG's at some point.

MS99UK
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Old 20th Feb 2004, 07:22
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Hehe, I hope it all goes to plan, cause my training course starts soon! Remember some of us want and have to make this work, so stop putting us down lol, we'll show ya!!!

Anyway my prediction is that in a few years time, CVT will be renamed TUI international (operated by Britannia!). The runway will be extended to about 60000ft, linked to the one at BHX hehe. BY will have all 32(?) aircraft based there, which'll please the locals....all those 763s on approach at 3am!! All BY flights will operate ex TUI (the new code for CVT!) and the entire Coventry city centre will be bulldozed to make room for new car parks. In addition to this the Aviation park will receive all of MYT/MYL's aircraft which will go on display as a reminder and will occasionally operate the Friday night PMI. Which will deliberately go Tech and be subject to a 12 hour delay to recreate the authentic feel (sorry couldn't resist a dig lol!)

Just a few ideas I had lol!
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Old 20th Feb 2004, 07:49
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But will the Hermans in TUI land (HAJ) Ops send the a/c to the correct airport. I mean, CVT, fairly close to BHX same as LTN is close to STN and PMI is close (ish) to BCN. Engines and chartered 747's springs to mind
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Old 20th Feb 2004, 08:05
  #34 (permalink)  
 
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As I said I wish them success as I have friends there who have taken a gamble to work for the enterprise. If Cov can be turned into a viable low cost hub then thats grand - its a shorter commute than at present for me.

But.

You simply cannot cannot put a positive spin on the current situation.

6 weeks from launch and:

You have no terminal, no check in, no car park, no baggage handling.

No signs for pax to follow, no branding on the site, no cash machine, no coffee shop, no WHSmiths, no Bureau de Change.

You do have the local councillors vowing to close you down, the planning department refusing your terminal plans and Stop notices being slapped on your current portacabins.

And this is being organised by a mighty Teutonic company worth billions?! Should've hired Heath Robinson.

Forget about pilots, industry people, people who read PPRuNe and people who live in Coventry - NOBODY knows you can go on holiday from Coventry airport! I bet less than 5% of the population of the Midlands even knows that there is an airport there...

Hell, - Buzz struggled for years to get anybody to notice them and that was out of Stansted 'the low cost airlines airport'.

TompkinsBeetle will have to spend 10's of millions to make enough people aware of the product. This is doable.

But not if the product involves parking on Coventry High St and catching the number 82x Bus to portacabin 52f round the back of Hangar 12 - just past the DC3's....

However, on the bright side, this does put them leagues ahead of Now as they do actually have crews, aircraft, sales and finance in place.

This'll make an interesting book if it ever works - thats for sure.


WWW

ps Like the MYT angle - but surely not?
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Old 20th Feb 2004, 16:14
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Haven't you all noticed - UK airports make profits and see sustained growth year on year apart from the odd blip.

An operator having its own base must have many advantages. Now, apart from making money of the ticket sales, they'll see revenue from all the car parking and commercial concessions. Interesting to see what they do with Jet A1 - they won't be paying any into the airport's coffers for the supply. They won't have to be saddled with a third party handling agent - they can do their own. They won't have to apply for slots in competition with other operators. The economies are bound to reap benefits.

Okay, they have to get it all up and running and ensure that their clientele aren't put off and repeat custom is secured.

HLX are sure to operate from the homeland and what about setting up a maintenance facility to cater for the whole Tui fleet positioning in and out empty and no airport fees.

NEMA and BHX must be peering over the parapet.............pondering.
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Old 20th Feb 2004, 16:21
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Rochdale is a town in Lancashire - north of Manchester. I guess it's where David Crossland set up Airtours, but someone may correct me.
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Old 20th Feb 2004, 16:53
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If owning your own airport was such a wonderful asset to an airline then how come fully vertically integrated airlines such as BA have never done it?

Low cost airlines are supposed to do one thing and do it well. That is to run a very tight scheduled operations, without frills, distractions and overheads. They tend to franchise out anything that is non-core to the business.

They don't get involved in anything that isn't selling tickets direct and operating each aircraft. Minimum complication, minimum expenditure, minimum staff, minimum service.

Keep it as simple as possible, just like a bus.

What they do not want to do is run the whole shebang from the carparks to the terminal to the refuelling to the freaking air traffic control. Thats the obsolute opposite of the business model!!

But then - I know nothing about running an airline so good luck them.

Cheers

WWW
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Old 20th Feb 2004, 17:09
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WWW,

you are right low cost airlines do need to keep it simple but thomsonfly is not buying the airport TUI is. OK i know they are one and the same but i'm sure that TUI will put in a management team to run the airport completely seperate to Thomsonfly's own management.

At the end of the day seems like a bloody good plan. Pick up the airport cheap and then start a lowcost airline giving you cheaper or maybe no landing fees and a return from all the pax you bring to the airport. Should work I think. As for the future there's not too many airports left with no low cost airlines so maybe thomsonfly are looking at finningley for their next base.
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Old 20th Feb 2004, 17:45
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I know a lot of jobs are riding on this event and I do worry that TUI are jumping out of the pan into the fire...
Coventry has nothing really going for it. Lousy roads, try that A45!!! No parking no terminal no facilities and an airfield littered with carcasses and wrecks! no taxiway, aircraft back tracking on a small runway. The list is no doubt longer than this. However they have sold a lot of tickets but how many people will book again when they cant park, cant get a drink and end up in a porta loo as if they were at some sunday car boot market! I find it amazing that TUI are willing to invest in this rundown airport that has sadly no future when within spitting distance you have two well established full featured International Airports?
Sadly I cant see anything positive out of this. If as suggested its a "nail in the coffin of MyTravel" then what will TUI do if that company does cut its losses and stops?? Will they do to Coventry what BMW did to Rover group?? Run to BHX and leave Coventry to rot even more??
Love to see the faces of the passengers as the 737 passes by the rotting remains of the Electras and other wrecks on the airfield that will inspire confidence...not!
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Old 20th Feb 2004, 17:52
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Pocket Money for TUI. It will give them control of a very well located airport. Getting good airport management will not be a problem. Investing in a good low cost terminal will not be a problem either.
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