Flybe-V1
Join Date: Feb 2018
Location: Aalborg
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While you are correct no money is owed. We all know how it works. This is a venture capitalist firm which is bankrolling Flybe with the aim of making a nice profit when they sell it on. They are not pouring this cash in for the fun of it. They are expecting a healthy return on their investment sooner rather than later if media reports are to be believed.
Doesn’t anyone who owns or part owns a business want a return on their investment? Don’t they make more money if it’s very successful which is a great motivator to be a success. Are the shareholders of easyjet happy at losing a billion a year or having their holding diluted in cash raises as in other airlines?
Any money they haven't earned is debt, look where the money went from Flybe1
Flybe have a single shareholder who has well over 50.1% of the shares and thus has complete control. Pension funds each holding maybe 1% of the shares of a large company tend to just sell shares of companies that are underperforming - it's rarely worth their time to become activist investors and start sacking directors. Venture capital firms will be initially supportive if they feel directors need a bit of help and they will provide that help, but ultimately are not known for being forgiving - instead they are rather more activist - if the company doesn't do well, directors can find themselves threatened with "either you resign for personal reasons or we will call an EGM and force you out in a very public way". Think Lord Sugar on The Apprentice
Easyjet has a broadly diversified shareholder base. Stelios as the largest shareholder owns well under 50% of the shares. Thus, no investor has complete control. The directors therefore have greater control of the company as it becomes harder for individual shareholders to persuade enough other shareholders to combine to create opposition over 50% to what the directors propose
If Flybe flops in spring / summer 2022, there is likely to be swift and unambiguous action by the shareholder against the directors.
Easyjet has a broadly diversified shareholder base. Stelios as the largest shareholder owns well under 50% of the shares. Thus, no investor has complete control. The directors therefore have greater control of the company as it becomes harder for individual shareholders to persuade enough other shareholders to combine to create opposition over 50% to what the directors propose
If Flybe flops in spring / summer 2022, there is likely to be swift and unambiguous action by the shareholder against the directors.
Join Date: Aug 2009
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Doesn’t anyone who owns or part owns a business want a return on their investment? Don’t they make more money if it’s very successful which is a great motivator to be a success. Are the shareholders of easyjet happy at losing a billion a year or having their holding diluted in cash raises as in other airlines?
Good points on the need for high cost high frequency fares for business BUT to balance the books they also the rest of the volume to fill 78 seats on leisure and lower end fares, which EZY will have already nabbed. Hence you could operate 4 x daily trunk routes on the Q400 with 20% load factors and high fares, then you'd be Eastern and niche. Flybe were never as high cost as T3 and they did chase volume to keep fares down. Right now I can't see them getting the lower fares volume until easyJet give up, if at all. So there is a need as stated above, but not sure how it gets met with EZY still in market. The competitor leaving is a dependency to any profitability IMHO.
Join Date: Nov 2006
Location: Northern Ireland
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Alot of valid commentary above. A few points I'd make. The example of the business traveller who wants frequency above price, this is fine but the issue is currently that their is a drastic reduction in business travellers, prob a decline in excess of 75% in general. On top of this given the challenge on internation routes particularly at this time makes domestic flying much more attractive to easyJet, so they'll be happy to keep flying said routes are low returns. In my opinion Flybe need to avoid getting into the low cost airline space, it's insane. easyJet will provide flights early morning say after 4pm and after 6pm, which covers most requirements of the core market. This is generally what they do and between morning flying and late afternoon a leisure route will be flown that is not time sensitive.
Flybe needs to carve a space in the market at scale to make its cost base effective yet avoiding low cost airline routes. I think there is a wide range of international routes that are too think for a jet yet have demand especially from Birmingham, some from Manchester and others from regional airports by exception. They will come back in time however, to start flying before summer I can't see it.
Flybe needs to carve a space in the market at scale to make its cost base effective yet avoiding low cost airline routes. I think there is a wide range of international routes that are too think for a jet yet have demand especially from Birmingham, some from Manchester and others from regional airports by exception. They will come back in time however, to start flying before summer I can't see it.
Having arrived at NI’s “international” gateway on Weds last, I’ll assume this question is either sarcasm, or rhetorical (though the use of a ? suggests otherwise).
Having been herded off the Bristol flight through a completely random door (like one’s own front door), into a dark, dank corridor, onward to a bag collection area which is likely older than me……
I look forward warmly to Emerald and FlyBe MkII making business travel to from the U.K. from a decent airport the pleasure it once was. Good luck!
Having been herded off the Bristol flight through a completely random door (like one’s own front door), into a dark, dank corridor, onward to a bag collection area which is likely older than me……
I look forward warmly to Emerald and FlyBe MkII making business travel to from the U.K. from a decent airport the pleasure it once was. Good luck!
Join Date: Dec 2021
Location: Teesside
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I reckon before 2022 is out or early 2023 Flybe could be serving Teesside. I say this because I reckon there is scope for some routes that would need an aircraft with bigger capacity than 50 but less than a large 150 seat airliner. Flybe's 78 seat capacity would fit this market really well for frequent regular services with better cost units per seat compared to lower capacity aircraft.
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I reckon before 2022 is out or early 2023 Flybe could be serving Teesside. I say this because I reckon there is scope for some routes that would need an aircraft with bigger capacity than 50 but less than a large 150 seat airliner. Flybe's 78 seat capacity would fit this market really well for frequent regular services with better cost units per seat compared to lower capacity aircraft.
Teeside can barely support a London service. Flybe won't want to compete with KLM on Amsterdam. I can't see any room on Dublin with Loganair there and I'm not sure any returns would make the fight worthwhile. There is usually a reason why if Ryanair aren't operating a Dublin service from a UK airport.....
I genuinely struggle to see any suitable potential routes which might make any money whatsoever for an airline like Flybe from Teeside.
Join Date: Dec 2021
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I think there are probably far larger and more lucrative markets to target.
Teeside can barely support a London service. Flybe won't want to compete with KLM on Amsterdam. I can't see any room on Dublin with Loganair there and I'm not sure any returns would make the fight worthwhile. There is usually a reason why if Ryanair aren't operating a Dublin service from a UK airport.....
I genuinely struggle to see any suitable potential routes which might make any money whatsoever for an airline like Flybe from Teeside.
Teeside can barely support a London service. Flybe won't want to compete with KLM on Amsterdam. I can't see any room on Dublin with Loganair there and I'm not sure any returns would make the fight worthwhile. There is usually a reason why if Ryanair aren't operating a Dublin service from a UK airport.....
I genuinely struggle to see any suitable potential routes which might make any money whatsoever for an airline like Flybe from Teeside.
We just need to see Covid restrictions removed, freer travel allowed and everything getting back to normal. Only once things have returned to normal then comparisons can be made.
Join Date: Oct 2007
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Teesside can support a London service and has done very well in the past. The current situation is none of the air industry making. Covid has knocked the bottom out of everywhere, foreign travel decimated, offices working from home etc.
We just need to see Covid restrictions removed, freer travel allowed and everything getting back to normal. Only once things have returned to normal then comparisons can be made.
We just need to see Covid restrictions removed, freer travel allowed and everything getting back to normal. Only once things have returned to normal then comparisons can be made.
Teesside can support a London service and has done very well in the past. The current situation is none of the air industry making. Covid has knocked the bottom out of everywhere, foreign travel decimated, offices working from home etc.
We just need to see Covid restrictions removed, freer travel allowed and everything getting back to normal. Only once things have returned to normal then comparisons can be made.
We just need to see Covid restrictions removed, freer travel allowed and everything getting back to normal. Only once things have returned to normal then comparisons can be made.
If Flybe are to make a fist of the new operation it will need to be on the tried and tested routes, where there isn't competition, rather than chasing subsidies (bribes) from this that and the other airport to open up bases. That really worked well for the former incarnation didn't it? Think Doncaster and Cardiff! The scattergun approach is essentially making the same mistakes as before, and if businesses don't learn from other's mistakes then they will fail.
Join Date: Apr 2018
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Join Date: Apr 2006
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