Eastern Airways
Join Date: Aug 2002
Location: USA
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Get the cardiac unit on standby ....I AGREE with allmcc.The reduction in price is VERY noticable. I recall the last time something like this happened was when there was competition on the LGW route to BHD where Flybe saw the writing on the wall and reduced their fares in direct response to the arrival of EZY(and seemed to survive). Great news for the customer but I wonder how sustainable it is for the airlines ...and ultimately which one has the deeper pocket.
Join Date: Sep 2003
Location: BOH - UK
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"I keep hearing the same rumour from numerous people that Flybe may become a direct competitor on routes currently served by both Bmi regional and Eastern"
Yes, I'm led to believe bmi regional @ Leeds are being lined up for an offensive. EDI/GLA/JER all on the flybe network of course and with bmi filling these at quite extraordinary fares, they are ripe for the flybe treatment.
loco
Yes, I'm led to believe bmi regional @ Leeds are being lined up for an offensive. EDI/GLA/JER all on the flybe network of course and with bmi filling these at quite extraordinary fares, they are ripe for the flybe treatment.
loco
Join Date: Dec 2004
Location: Newcastle
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There are also rumours at NCL that flybe have been looking at Easterns other routes such as BHX, ABZ and IOM.
It's also interesting that Flybe went double daily on the NCL - SOU with good times for business travellers! I wonder who will win the war!
It's also interesting that Flybe went double daily on the NCL - SOU with good times for business travellers! I wonder who will win the war!
Join Date: Feb 2005
Location: Isle of Man
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Eastern are essentially a business airline, and will find it hard to compete with LCC's and similar. However, I believe their policy is not to go head to head on routes. Their service is excellent and the J-41 is ideally suited to the levels of both customers and frequency.
I do also believe, however, that Eastern are looking for a J-41 replacement. The lease (BA) on them expires in 2007 and unless Eastern take on an extension, then the aircraft will return to lessor.
Skiddy
I do also believe, however, that Eastern are looking for a J-41 replacement. The lease (BA) on them expires in 2007 and unless Eastern take on an extension, then the aircraft will return to lessor.
Skiddy
skiddyiom, the J41s are a problem. Eastern's business model relies on being able to get a relatively small number of passengers at high yields onto its aircraft. This is an absolute godsend to FlyBe. All it needs to do is transfer that small number of pax at high yields onto the Q400s and then it's paid for the operation of the aircraft, but still has 50 seats to play with.
Eastern's only saving grace at the moment is that FlyBe's frequencies on a number of key routes like NCL-SOU and LBA-SOU have been fairly light and have not provided the business schedules offered by Eastern. However, this is progressively changing and NCL-SOU is the first route to come under sustained direct fire. It will be interesting to see how they get on.
In my view, the only way for Eastern to survive is to get more 50-seat turboprops and play FlyBe at their own game. Frequency increases; turn off some of the smaller markets which have no potential for growth; and try some new routes linking existing network points like Newcastle-Norwich, Edinburgh-Isle of Man.
It would not be surprising to see NCL-BHX and routes ex ABZ feature in more FlyBe announcements.
If they fail to do so, Eastern will become marginalised rapidly and I believe they have only six to twelve months left in which to make radical changes to their business plan. Any route which will sustain a J41 will almost certainly sustain a Q400 with lower fares to expand the market. It means the future for Eastern is either grow; or cut back to J31 operations where markets will be too small for anyone else to serve. The latter doesn't seem like much of an option.
Eastern's only saving grace at the moment is that FlyBe's frequencies on a number of key routes like NCL-SOU and LBA-SOU have been fairly light and have not provided the business schedules offered by Eastern. However, this is progressively changing and NCL-SOU is the first route to come under sustained direct fire. It will be interesting to see how they get on.
In my view, the only way for Eastern to survive is to get more 50-seat turboprops and play FlyBe at their own game. Frequency increases; turn off some of the smaller markets which have no potential for growth; and try some new routes linking existing network points like Newcastle-Norwich, Edinburgh-Isle of Man.
It would not be surprising to see NCL-BHX and routes ex ABZ feature in more FlyBe announcements.
If they fail to do so, Eastern will become marginalised rapidly and I believe they have only six to twelve months left in which to make radical changes to their business plan. Any route which will sustain a J41 will almost certainly sustain a Q400 with lower fares to expand the market. It means the future for Eastern is either grow; or cut back to J31 operations where markets will be too small for anyone else to serve. The latter doesn't seem like much of an option.
Join Date: Feb 2005
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Flightrider, you could be right, although I am not sure Easterns business plan involves competing with Flybe. Or, indeed, if Flybe intend to aggressively compete with Eastern. Flybe seem to be concentrating more on expanding into Europe at the moment.
The aircraft are a big worry though. As I said, the J-41's are due return soon, which may be no bad thing, and I believe the J-31/32's are slated for retirement too. But routes like IOM-LBA and IOM-BHX are not busy enough for a 50 seater. But they are relatively busy with the 19/29 seats of the Jetstreams. And I would imagin there are other routes on Eastern's network in the same predicament.
skiddy
The aircraft are a big worry though. As I said, the J-41's are due return soon, which may be no bad thing, and I believe the J-31/32's are slated for retirement too. But routes like IOM-LBA and IOM-BHX are not busy enough for a 50 seater. But they are relatively busy with the 19/29 seats of the Jetstreams. And I would imagin there are other routes on Eastern's network in the same predicament.
skiddy
Join Date: Feb 2004
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If the price was right to stimulate demand, you may well be able to fill your 50 seater aircraft, and still do okay.
An integrated approach both ends of the route can only help.
An integrated approach both ends of the route can only help.
Thread Starter
Join Date: Aug 2004
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I'm trying to get my head around why FlyBE would want to compete with other established operators that far North of their main operations.
I presume they would have to establish a base station at ABZ and would surely at first take losses on these routes as they vie for market share.
I thought the FlyBE business model was based upon operating up European routes from their Southern bases but with some frills.
Is there really a need for 3 operators to vie for a market that they all know is just not large enough for that many operators. Heard that FlyBE would then open up the ABZ base to scandanavian routes to compete against SAS and CityStar.
Tough times ahead for both Eastern and Bmi I think
I presume they would have to establish a base station at ABZ and would surely at first take losses on these routes as they vie for market share.
I thought the FlyBE business model was based upon operating up European routes from their Southern bases but with some frills.
Is there really a need for 3 operators to vie for a market that they all know is just not large enough for that many operators. Heard that FlyBE would then open up the ABZ base to scandanavian routes to compete against SAS and CityStar.
Tough times ahead for both Eastern and Bmi I think
Join Date: Mar 2001
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Woulden't an a/c like the DHC-8 100/200 and a couple of 300's be a good choice for Eastern? That way they have a/c for the 30 seat and 50 seat markets and can chop and change last minute with no crewing probs. I'm not an expert, just a thought.
With the larger, faster a/c of flybe and cheaper seats however, how long can Eastern compete for as they seem to have a very flybe-esque network, but more pricey seats. Even these days businesses are more reluctant to shell out on expensive business fares and instead place their employees on the loco's.
Tri
With the larger, faster a/c of flybe and cheaper seats however, how long can Eastern compete for as they seem to have a very flybe-esque network, but more pricey seats. Even these days businesses are more reluctant to shell out on expensive business fares and instead place their employees on the loco's.
Tri
