Aer Arann
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Cuts
Aer Arann are to cut the WAT-BHX service for the winter period replacing it with a further LTN service. A mix of good and bad news I suppose. The BHX service was always the poor relation of routes at WAT. Perhaps WAT can build it's loads back up and show that it is quite viable.
CP.
CP.
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If those figures are correct that is very bad news.
CSO Stats M1-M7 45,894 (5 international routes)
Est M8-M10 19,668 (average of previous 7 months)
Est DUB M1-M7 20,000 (50% of 2010)
Est WAT 1,600 (50% of 2010)
Total 87,162 or a 45% drop on 2010.
Join Date: Mar 2011
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Winter Routes
KIR MAN also withdrawn from Nov 06th, really suprised considering that the aircraft operating the DUB PSO could easily continue to operate this service from KIR once GWY MAN ends.
The RE brand is really reducing and only operating now on 6 routes.
DUB KIR
DUB IOM
IOM LCY
WAT SEN/LTN/MAN
REX
The RE brand is really reducing and only operating now on 6 routes.
DUB KIR
DUB IOM
IOM LCY
WAT SEN/LTN/MAN
REX
Last edited by RE-tard; 15th Oct 2011 at 08:31.
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Article reports that Tim Kilroe has stood down from the board of RE due to "business commitments" and has appointed a nominee but remains a shareholder. Also comments that Stobarts must be unhappy with the withdrawal of GWY - SEN.
An airline spokesman is reported to have dismissed any notion of shareholder discord, and said that it was still "very excited" about the prospects of serving SEN in the future.
An airline spokesman is reported to have dismissed any notion of shareholder discord, and said that it was still "very excited" about the prospects of serving SEN in the future.
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Re is run by a bunch of Directors who can't run an Airline, there record so far is one of poor management, as can be seen by its most experianced people leaving the company over the past 12-18 months (wonder why) its a airline heading for failure. Once Aer Lingus is sold off there history.
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SOUTHEND-GALWAY/WATERFORD
Just looking at the figures for September 2011.
Luton-Galway 1,590
Southend-Galway 1,582
Luton-Waterford 1,513
Southend-Waterford 2,601
Total = 7,286
When operated to Luton in 2010
Luton-Galway 6,587
Waterford 5,137
Total = 11,724
Ryanair passengers on the Luton-Dublin increased by 4,700 over the same period.
Quite a lot of us said this would happen and sure enough. I suggest some people should stick to running a trucking business which they do very well and not dabble in things that they seem to know nothing about
Luton-Galway 1,590
Southend-Galway 1,582
Luton-Waterford 1,513
Southend-Waterford 2,601
Total = 7,286
When operated to Luton in 2010
Luton-Galway 6,587
Waterford 5,137
Total = 11,724
Ryanair passengers on the Luton-Dublin increased by 4,700 over the same period.
Quite a lot of us said this would happen and sure enough. I suggest some people should stick to running a trucking business which they do very well and not dabble in things that they seem to know nothing about
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Slight thread drift, but looking forward to seeing the same comparisons on LTN & STN vs SEN when the competing EZY flights kick in. Hopefully someone will be able to get the data.
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Even SEN supporters thought it was a strange move to launch flights to Ireland when SEN's advantage lay with routes to the east and south east. However, Aer Arran's daily schedules have served Stobart's purposes well allowing infrastructure to be tested at SEN and to give some much needed support to their negotiations with EZY. No doubt they are disappointed that the numbers have fallen (and they have fallen on routes from MCR too don't forget) but ....
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Just looking at the figures for September 2011.
Luton-Galway 1,590
Southend-Galway 1,582
Luton-Waterford 1,513
Southend-Waterford 2,601
Total = 7,286
When operated to Luton in 2010
Luton-Galway 6,587
Waterford 5,137
Total = 11,724
Ryanair passengers on the Luton-Dublin increased by 4,700 over the same period.
Luton-Galway 1,590
Southend-Galway 1,582
Luton-Waterford 1,513
Southend-Waterford 2,601
Total = 7,286
When operated to Luton in 2010
Luton-Galway 6,587
Waterford 5,137
Total = 11,724
Ryanair passengers on the Luton-Dublin increased by 4,700 over the same period.
The GWY figures in particular are horrible reading. Even at this late stage and with all GWY's problems, it would be great to see Flybe being able to start GWY-LTN. Get the London area airport right for the market you serve and demand is there by the looks of it.
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Precisely @ryan2000
I think the writing is going to be up on the wall in the near future for Aer Arann, yet again. My wondering is, will Stobart Air NEED to care about rescuing it? It'll probably get to the stage where EI buy Aer Arann for the sake of keeping regional ops on slim routes and feeding DUB.
I think the writing is going to be up on the wall in the near future for Aer Arann, yet again. My wondering is, will Stobart Air NEED to care about rescuing it? It'll probably get to the stage where EI buy Aer Arann for the sake of keeping regional ops on slim routes and feeding DUB.
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Strategy
Here's a question for everyone to mull.....
If you were Aer Arann management, what would be your plan for managing the airline over the next one, three and five years?? What strategy would you adopt to deal with the loss of PSO's, your home market GDP dropping dramatically, an ageing fleet (well the 42's at least) and your brand being little recognised in other markets? Bear in mind the financial constraints of both your business and your home market.
Thought it'd be an interesting exercise to see what peoples views are on this.
If you were Aer Arann management, what would be your plan for managing the airline over the next one, three and five years?? What strategy would you adopt to deal with the loss of PSO's, your home market GDP dropping dramatically, an ageing fleet (well the 42's at least) and your brand being little recognised in other markets? Bear in mind the financial constraints of both your business and your home market.
Thought it'd be an interesting exercise to see what peoples views are on this.
Well, for a start I wouldn't have abandoned the SEN base plans as that would compensate for items 1 and 2 in your list of problems. Their reliance on the Irish market, both as RE and as Aer Lingus Regional, was surely one of the main drivers for diversification from a SEN base.
I would dispose of the ATR42s, although I'm not aware if these are owned or leased.
I would try to enhance the brand awareness (and you are right to point out this problem) by mounting a strong marketing campaign in conjunction with SEN/Stobart. This would take the form of selling RE as a European Regional airline serving secondary European destinations within 90 minutes of SEN as a LON destination. Unless Stobart are happy to write off their 2.5 million Euro investment, provided they could be shown a robust business plan for the SEN hub, I would have thought there was a fair chance they might go along with strong marketing/awareness support. That is unless they've decided that easyJet should be the total focus of such expenditure and are kicking the RE investment into the long grass.
What I see at the moment is simply retrenchment to conserve cash but without any strategy to move forward. I don't quite see how the RE statement that they are "very excited about the prospects of serving SEN in the future" can be realised. If they cannot afford the marketing costs for 4 or 5 new routes from SEN in Spring 2012 (when the Olympics would give a nice initial boost to yields), where will the financial soundness to do so come from after that? Even one or two SEN routes with very robust financials (and I know of at least two such) would have surely been more sensible for Spring 2012 than dropping the whole idea at the last minute.
I'm not keen on 3 or 5 year strategies in the currently volatile economic situation in Europe and would prefer options were kept open so that a nimble footed management could adjust strategies to suit conditions.
I really do hope that RE can get themselves back on an even keel and move ahead - there are few enough independent airlines as it is - but I simply don't see how they currently intend to go about it. Just hoping that things are better next Spring and reinstating the suspended routes won't achieve that aim in my view.
I would dispose of the ATR42s, although I'm not aware if these are owned or leased.
I would try to enhance the brand awareness (and you are right to point out this problem) by mounting a strong marketing campaign in conjunction with SEN/Stobart. This would take the form of selling RE as a European Regional airline serving secondary European destinations within 90 minutes of SEN as a LON destination. Unless Stobart are happy to write off their 2.5 million Euro investment, provided they could be shown a robust business plan for the SEN hub, I would have thought there was a fair chance they might go along with strong marketing/awareness support. That is unless they've decided that easyJet should be the total focus of such expenditure and are kicking the RE investment into the long grass.
What I see at the moment is simply retrenchment to conserve cash but without any strategy to move forward. I don't quite see how the RE statement that they are "very excited about the prospects of serving SEN in the future" can be realised. If they cannot afford the marketing costs for 4 or 5 new routes from SEN in Spring 2012 (when the Olympics would give a nice initial boost to yields), where will the financial soundness to do so come from after that? Even one or two SEN routes with very robust financials (and I know of at least two such) would have surely been more sensible for Spring 2012 than dropping the whole idea at the last minute.
I'm not keen on 3 or 5 year strategies in the currently volatile economic situation in Europe and would prefer options were kept open so that a nimble footed management could adjust strategies to suit conditions.
I really do hope that RE can get themselves back on an even keel and move ahead - there are few enough independent airlines as it is - but I simply don't see how they currently intend to go about it. Just hoping that things are better next Spring and reinstating the suspended routes won't achieve that aim in my view.
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I think that in ditching the plan for a SEN base, Arann are really missing a trick here. There are many routes which simply aren't viable on an A319 which are on an ATR - a lot of potential being missed. I would steer the company in that direction.
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I agree absolutely with Expressflight and Aero Mad. Aer Arann would be in prime position to exploit the opportunities offered by what is effectively a new airport for London. flyBE would be another obvious candidate. The short term boost of the Olympics could provide the launching pad for a broad network of services to secondary centres. Does it really have to be a European airline that will realise and exploit this...?
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