Openskies
Thread Starter
Join Date: Jan 2008
Location: desert climate
Posts: 92
Likes: 0
Received 0 Likes
on
0 Posts
Openskies
As you will have realized yourselves, we are facing very difficult times. With the worldwide
crisis in the financial markets, and the resulting global economic slowdown as major
countries move towards recession, the airline industry is suffering the worst crisis in its
history, compounded by the erratic nature of oil prices. (Although they are now falling
sharply, many carriers have hedged at higher levels). The crisis is deeper, more
protracted, more fundamental than 9/11, the Gulf War or any of the previous shocks that
have rocked our industry. All airlines are suffering – including the long established full
service airlines – and more than 30 airlines have gone bust this year.
OpenSkies and L’Avion are of course also impacted – the cities of New York, Paris and
Amsterdam that we serve are deeply affected by the financial and economic maelstrom.
Our revenues are below target through a combination of lower volumes and yields, and as
a priority we must take actions to ensure we keep within our cash reserves.
We must build on our strengths: we have people who care; we have a great product which
is exactly right for the market at this time; we have a single aircraft type which simplifies
our operation; we are small and can move quickly to respond to changing market
conditions. We must really maintain our focus.
We have decided to delay expansion: we will operate with our existing four aircraft and
defer delivery of the fifth aircraft (previously planned to enter operation in March 2009)
until the economic environment improves. We will also engage in a battle to reduce our
costs, examining each and every cost area for savings. We will look to all of you to help
us with these challenges – as well as continuing to do your job, and to make sure we
delight each and every customer.
It is imperative that OpenSkies and L’Avion act as one company so we are best placed to
get through these difficult times and achieve our shared vision of long-term success in the
point to point premium travel market. With immediate effect, we will use both company
logos and names in any external or internal communications. We will also act as one
company in commercial and financial decisions. In particular, we will have a two-way
codeshare between OpenSkies and L’Avion from 18 November, so we can sell tickets
under either the A0 or EC code from any of our distribution points on any of our four
aircraft.
Operational integration requires a decision on which Airline Operating Certificate (AOC)
we maintain as we become one single airline. We have now taken the decision to operate
under a single French AOC, after very detailed and careful organisational, commercial,
operational and cost analysis.
Paris was chosen for two major reasons:
- It is a strategic point on our network (at least half of our routes are likely to originate from
Paris)
- We can reduce cost and complexity and improve communications between managers
and operational employees by focusing our headquarters and European operations in
Paris.
The timing for full integration of our two great little airlines will be driven by a number of
factors and may proceed more rapidly in some areas than others, but will be completed
with determination as quickly and effectively as possible.
crisis in the financial markets, and the resulting global economic slowdown as major
countries move towards recession, the airline industry is suffering the worst crisis in its
history, compounded by the erratic nature of oil prices. (Although they are now falling
sharply, many carriers have hedged at higher levels). The crisis is deeper, more
protracted, more fundamental than 9/11, the Gulf War or any of the previous shocks that
have rocked our industry. All airlines are suffering – including the long established full
service airlines – and more than 30 airlines have gone bust this year.
OpenSkies and L’Avion are of course also impacted – the cities of New York, Paris and
Amsterdam that we serve are deeply affected by the financial and economic maelstrom.
Our revenues are below target through a combination of lower volumes and yields, and as
a priority we must take actions to ensure we keep within our cash reserves.
We must build on our strengths: we have people who care; we have a great product which
is exactly right for the market at this time; we have a single aircraft type which simplifies
our operation; we are small and can move quickly to respond to changing market
conditions. We must really maintain our focus.
We have decided to delay expansion: we will operate with our existing four aircraft and
defer delivery of the fifth aircraft (previously planned to enter operation in March 2009)
until the economic environment improves. We will also engage in a battle to reduce our
costs, examining each and every cost area for savings. We will look to all of you to help
us with these challenges – as well as continuing to do your job, and to make sure we
delight each and every customer.
It is imperative that OpenSkies and L’Avion act as one company so we are best placed to
get through these difficult times and achieve our shared vision of long-term success in the
point to point premium travel market. With immediate effect, we will use both company
logos and names in any external or internal communications. We will also act as one
company in commercial and financial decisions. In particular, we will have a two-way
codeshare between OpenSkies and L’Avion from 18 November, so we can sell tickets
under either the A0 or EC code from any of our distribution points on any of our four
aircraft.
Operational integration requires a decision on which Airline Operating Certificate (AOC)
we maintain as we become one single airline. We have now taken the decision to operate
under a single French AOC, after very detailed and careful organisational, commercial,
operational and cost analysis.
Paris was chosen for two major reasons:
- It is a strategic point on our network (at least half of our routes are likely to originate from
Paris)
- We can reduce cost and complexity and improve communications between managers
and operational employees by focusing our headquarters and European operations in
Paris.
The timing for full integration of our two great little airlines will be driven by a number of
factors and may proceed more rapidly in some areas than others, but will be completed
with determination as quickly and effectively as possible.
Junior trash
Join Date: Nov 1999
Location: UK
Posts: 1,025
Likes: 0
Received 0 Likes
on
0 Posts
after very detailed and careful organisational, commercial,
operational and cost analysis.
operational and cost analysis.
Couldonlyaffordafiver
Join Date: Dec 2000
Location: The Twilight Zone near 30W
Posts: 1,934
Likes: 0
Received 0 Likes
on
0 Posts
We have now taken the decision to operate under a single French AOC...
Knucklehead.
Join Date: Jan 2001
Location: UK
Posts: 107
Likes: 0
Received 0 Likes
on
0 Posts
It's a shame that when it does all come crashing down that the only one who will be safe job-wise is Knucklehead himself. Or maybe the BA board should get rid of him for wasting all that cash....
Join Date: Mar 2002
Location: EU
Posts: 644
Likes: 0
Received 0 Likes
on
0 Posts
has them rarely breaking double figures on the AMS
Oh yes, after searching the internet I see they fly the route since 15 october, but jeezz, what a bad marketing. Nobody around here (apart from the aviation community, and then still not many of those) has really heard about Open Skies.
How can you sell your tickets then?
I think you can safely blame marketing!
Join Date: Oct 1999
Location: All around the World
Posts: 131
Likes: 0
Received 0 Likes
on
0 Posts
I always suspected that the whole open skies thing was ill conceived, and fear now that this is the beginning of the end. Not very long now till its wholly divested to the French, with BA holding only a minority stake.
Join Date: Oct 2006
Location: I live like a gypsy.
Posts: 105
Likes: 0
Received 0 Likes
on
0 Posts
Since when was OpenSkies supposed to make money? Can anyone else imagine starting a new business only airline with obselete aircraft in the current financial climate and expect it to be profitable?
The whole concept is to introduce new T&C's for pilots /cabin crew and a low cost management structure. It will take time, but gradually more and more aircraft and routes that BA Mainline could operate will go to OS. BA already has the spare aircraft, crew and product, so why mess about with OS?
British Airways are so desperate to make it work, they are putting tent cards advertising OpenSkies on the meal trays of its own Club World passengers out of North American stations. In other words BA taunts its own customers with the fact that they paid twice as much (or more) to fly BA with a proper flat bed, than OS.
What is not advertised is that the OS 757's do not have BA's AVOD entertainment system as weight is critical (especially in the winter).
Now Air France has put its tanks on BA's lawn by switching their B777 from LHR/LAX to JFK, arguably the world's most prestigious route. What is BA's response? An OS 757? What a joke.
The whole concept is to introduce new T&C's for pilots /cabin crew and a low cost management structure. It will take time, but gradually more and more aircraft and routes that BA Mainline could operate will go to OS. BA already has the spare aircraft, crew and product, so why mess about with OS?
British Airways are so desperate to make it work, they are putting tent cards advertising OpenSkies on the meal trays of its own Club World passengers out of North American stations. In other words BA taunts its own customers with the fact that they paid twice as much (or more) to fly BA with a proper flat bed, than OS.
What is not advertised is that the OS 757's do not have BA's AVOD entertainment system as weight is critical (especially in the winter).
Now Air France has put its tanks on BA's lawn by switching their B777 from LHR/LAX to JFK, arguably the world's most prestigious route. What is BA's response? An OS 757? What a joke.
Last edited by Poof in Boots; 28th Oct 2008 at 10:10.
Join Date: Aug 2002
Location: London (Babylon-on-Thames)
Age: 42
Posts: 6,168
Likes: 0
Received 0 Likes
on
0 Posts
Clearly linked with the re-registering of the B757 on the new Isle of Man register as M-ERDE.
( with thanks to human factor )
( with thanks to human factor )
Last edited by Skipness One Echo; 28th Oct 2008 at 18:27.
Join Date: Dec 1999
Location: UK
Posts: 1,608
Likes: 0
Received 0 Likes
on
0 Posts
The whole concept is to introduce new T&C's for pilots /cabin crew and a low cost management structure.
Instead, the whole exercise has been an avoidance of mainline Ts & Cs, which while understandable, should not have been the main driver behind the business proposition.
Couldonlyaffordafiver
Join Date: Dec 2000
Location: The Twilight Zone near 30W
Posts: 1,934
Likes: 0
Received 0 Likes
on
0 Posts
British Airways are so desperate to make it work, they are putting tent cards advertising OpenSkies on the meal trays of its own Club World passengers out of North American stations.
French Social Taxes......Excuse my ignorance but would EC have to pay this when the Cabin Crew are JFK based.
Join Date: Feb 1999
Location: UK
Posts: 1,091
Likes: 0
Received 0 Likes
on
0 Posts
There has got to be another explanation as to why the company is adopting a French Aoc and intends to be run as a French company. Anyone who has ever tried to start a business in France, or indeed had French employees knows that the costs are considerably more than in other European countries. Not only that, the employment laws are very much geared in favour of employees, and it is extremely expensive to get rid of staff if redundancies are required, so much so that it is easier and cheaper to cut back on non-French staff.
You simply don't go to France if you want to cut costs, so there must be another angle.
You simply don't go to France if you want to cut costs, so there must be another angle.
I Have Control
Join Date: May 2004
Location: North-West England
Posts: 49
Likes: 0
Received 0 Likes
on
0 Posts
Un-needed airline....enough transatlantic J/F capacity already, given the economic climate.
Open Skies will go to the wall rapidly with a French AOC, and pourquoi pas?
Sorry for the permanent employees, less so for the over-paid sub-contractors from TCX, FCA and the rest.
Open Skies will go to the wall rapidly with a French AOC, and pourquoi pas?
Sorry for the permanent employees, less so for the over-paid sub-contractors from TCX, FCA and the rest.