Southend-2
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Profit centres can make losses, unfortunately.
Aviation is the largest profit centre in the balance sheet and as the investment properties are sold off to support the dividend, Aviation will becoming an even larger percentage of the overall group. So I believe all eyes will be on the airport to support the dividend from 2022.
Targets are 2.5m pax at £8 per pax profit (EBITDA) by 2018 which we know is now unrealistic. The longer term target is 5m pax at £10 per pax profit (EBITDA).
I can see two issues preventing achieving this. The first is the movements cap which only allows for circa 2m pax annually - however by removing non-pax flights (club flying, cargo, training etc...) this could be increased.
The second is that the Stobart Air fly a decent chunk of the pax and either they make a profit or the airport make a profit, but surely they both can't?
Aviation is the largest profit centre in the balance sheet and as the investment properties are sold off to support the dividend, Aviation will becoming an even larger percentage of the overall group. So I believe all eyes will be on the airport to support the dividend from 2022.
Targets are 2.5m pax at £8 per pax profit (EBITDA) by 2018 which we know is now unrealistic. The longer term target is 5m pax at £10 per pax profit (EBITDA).
I can see two issues preventing achieving this. The first is the movements cap which only allows for circa 2m pax annually - however by removing non-pax flights (club flying, cargo, training etc...) this could be increased.
The second is that the Stobart Air fly a decent chunk of the pax and either they make a profit or the airport make a profit, but surely they both can't?
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I'm pretty sure Stobart will exit those markets, I suggested previously some of the routes were to prove potential and Stobart would step aside if someone else came in.
Possibly they will try some new routes, or upgrade existing ones. Vienna seems to have done quite well on a limited schedule for example, that could easily fit into the slots vacated by Prague should that cease.
Possibly they will try some new routes, or upgrade existing ones. Vienna seems to have done quite well on a limited schedule for example, that could easily fit into the slots vacated by Prague should that cease.
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We don't know what lies behind easyjet's decision, but it may be that Stobart are to be congratulated, and they've at least partly achieved their objective. The only problem is they've gone and got themselves two rather nice E195 aircraft which need to be kept busy and as full as possible. Obviously competition on your better routes can't help.
Perhaps this is all very civilised. Maybe easyjet are happy for Stobart to fill in gaps in their schedule, such as a mid / late morning flight to AMS.
Perhaps this is all very civilised. Maybe easyjet are happy for Stobart to fill in gaps in their schedule, such as a mid / late morning flight to AMS.
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The EZY PRG is only on Friday & Monday, the peak demand for weekend breaks (stag do's). I see there being enough for both on the route at that frequency.
Interesting that last summer, STK flight was an early AM flight (0630), but has now conveniently shifted.
The EZY flight is slightly later (0725), allowing the train connection from London to be comfortable time-wise.
Dubrovnik destination, both EZY and STK offering Saturday & Tuesday flights. Again STK has conveniently shifted from 0720 departure in summer 17, to 1510 departure in summer 18, and EZY is using a 0725 departure. The EZY schedule is a much shorter season (just over the summer hols.) than STK, so again should be room for both - loads were reasonable last year, and has been a booming market from across the UK last year.
Interesting that last summer, STK flight was an early AM flight (0630), but has now conveniently shifted.
The EZY flight is slightly later (0725), allowing the train connection from London to be comfortable time-wise.
Dubrovnik destination, both EZY and STK offering Saturday & Tuesday flights. Again STK has conveniently shifted from 0720 departure in summer 17, to 1510 departure in summer 18, and EZY is using a 0725 departure. The EZY schedule is a much shorter season (just over the summer hols.) than STK, so again should be room for both - loads were reasonable last year, and has been a booming market from across the UK last year.
Last edited by Red Four; 12th Dec 2017 at 10:03.