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Southend-3

Old 8th Aug 2021, 01:58
  #261 (permalink)  
 
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I am struggling to match Esken's claim that SEN is in a strong position... with the fact that they have no passenger airlines, 3 major LCCs have left, SEN is very limited in the cargo business it can do, and they have little other aviation-based activity at SEN

Sounds more like big talk and
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Old 8th Aug 2021, 08:40
  #262 (permalink)  
 
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ATMs isnít an issue surely if they do bargain basement to get GA in. That would get the numbers up.

I see DUB is still showing throughout the winter but currently greyed out for booking, mostly at broadly the same days and times as the Wizz service. Then daily next summer. I wonder if a glitch or something they intend to run. In answer to an earlier question about non-based to SEN, yes itís possible because many current destinations are bases. That includes Corfu which has a route to Teeside currently.
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Old 9th Aug 2021, 09:25
  #263 (permalink)  
 
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Sad news that Ryanair is axing Southend from Nov.01
I hope this great little airport can attract easyJet back soon in the recovery. There is a core bunch of well established and popular routes that serve the local population well.
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Old 9th Aug 2021, 12:26
  #264 (permalink)  
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Easyjet had nearly 10 years at SEN. I suspect it was more than Covid that ended their Southend plans. Being shut overnight would not have helped either but I guess we will never know.
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Old 9th Aug 2021, 19:01
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I agree LTNman.
easyJet figured that SEN would probably offer a better commercial equation than flying the same routes from STN head to head with Ryanair. And that's exactly what they did shifted those routes to SEN ,FAO,AGP,ALC,PMI etc. These were great performers from SEN. Ryanair's entry to SEN was the big item, I believe if they hadn't gone there easyJet probably would have weathered the storm...

Last edited by EI-BUD; 9th Aug 2021 at 22:39.
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Old 9th Aug 2021, 19:53
  #266 (permalink)  
 
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With Easyjet and Ryanair gone, and Wizz operating only a 3x weekly to Bucharest, I'm now wondering what airlines would consider flying from Southend. It seems unlikely that Easyjet or Ryanair will want to do a rapid change of plan and come back to Southend in the next 2 years
None of Aurigny, Blue Islands, Eastern or Loganair seems particularly obvious as a candidate. An embryonic new-Flybe has far bigger things to deal with, and I can't see other significant LCCs lilke Eurowings or Norwegian being interested either - although *maybe* Transavia would take a brief look because of the historic local demand to Amsterdam for a route starting in S22. I'm struggling to think of who might want to fly between Southend and the Spanish costas. There's no obvious need for any PSO flying at Southend.
Can anybody think of potential passenger airlines to fly from SEN in a non-trivial way ?
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Old 9th Aug 2021, 20:12
  #267 (permalink)  
 
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In the absence of an airport-run airline ("Esken Air" anyone) I do not see viable routes until the overall London market has recovered to pre-COVID19 levels and the whole cake has become big enough again to cut a small slice for Southend by steering away those passengers from the other London airports for which SEN offers an advantage (I would put my money on AMS and maybe DUB as the most likely candidates). All UK and foreign airlines that already serve LON will focus on rebuilding their market at their established gatewaysfor a long time and I doubt we will see any airlines without a London presence pre-COVID to enter this market in the foreseeable post-COVID future. Maybe a niche route.
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Old 9th Aug 2021, 20:32
  #268 (permalink)  
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Let it not be said that the airport owners are not optimistic

https://travelweekly.co.uk/news/air/...uthend-airport
Airport owner Esken insisted the impact on earnings “will be negligible in view of the expectation of limited flying in the winter season”.

Management will have time to “implement mitigating actions which will include cost savings and deferral of discretionary capital expenditure and attracting new carriers into LSA to operate the routes vacated by Ryanair”.

Esken said it remains focussed on targeting airlines for the recovery of flying in summer 2022 when demand is expected to show a post-pandemic recovery.

The group is in “active dialogue” with a range of low cost and flagship carriers “where the previously proven route profitability, the airport’s efficient operating cost base and the safe passenger experience is likely to prove attractive as demand recovers”.

David Shearer, executive chairman of Esken said: “The terms of the deal which had been entered into with Ryanair in 2018 were based on a significantly different set of market and economic parameters to the present day.

“We are therefore commercially agnostic to this decision and will look to build sustainable and profitable passenger growth for LSA [London Southend Airport] with a range of other carriers as demand recovers into a post pandemic world.
Reality check

https://www.independent.ie/business/...-40731019.html
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Old 9th Aug 2021, 20:57
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SEN's competitive advantages were availability of slots in the London area, low charges (presumably), and a slightly different catchment area (although coastal airports in the UK have often suffered from having half their catchment area covered by sea).
Of these, the first has disappeared for the time being due to Covid.
Low charges will in future be more widely available as airports start to try and build their pax numbers again.
With loads as low as they are at present, the principal airports with the richest catchment areas will win out.

In short, it's hard to see what would attract operators to SEN. All the other LON area airports have available capacity, and airlines are likely to place their fleet where demand is high, yield is good and slots are available. That to me looks like LHR and LGW, at least for the next year or two.
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Old 9th Aug 2021, 21:51
  #270 (permalink)  
 
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Good yield is available at SEN though for the core sun routes as it has a decent sized local catchment willing to pay a slight premium - certainly compared to STN - for the ease and convenience. I also struggle to name names with any great certainty, other than Iím more confident than some that Wizz would give it a go. Certainly in light of them opening bases at DSA and Cardiff.

One thing the owners have done quite well is local marketing so an outsider with little or no UK presence or brand awareness like a Voletea couldnít be ruled out. Or Eastern finding a use for their jets.
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Old 10th Aug 2021, 04:28
  #271 (permalink)  
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It seems that Wizz have quietly quit Southend. FlightRadar24 shows no flight history for last nights flight and nothing for the scheduled flights for the 6th and 4th August. Looking forward, when trying to book a flight from SEN on the Wizz website it only shows Luton flights with a red warning triangle regarding the different airport.

Last edited by LTNman; 10th Aug 2021 at 05:03.
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Old 10th Aug 2021, 07:06
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Thatís because they donít re-start until winter, same with Gatwick. Itís still available to book.
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Old 10th Aug 2021, 07:25
  #273 (permalink)  
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So much for davidjohnson6 telling me to check flightradar 24 then rather than looking at the airports website. I have found it to be inaccurate in the past by showing phantom flights and so it is.

Last edited by LTNman; 10th Aug 2021 at 07:53.
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Old 10th Aug 2021, 08:21
  #274 (permalink)  
 
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The average person isn’t looking for random flights. They are looking for the flight they know their relative is on or they know they will take. The Heathrow departure board doesn’t show all flights. Not many airports do so they would also be wrong.
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Old 10th Aug 2021, 20:55
  #275 (permalink)  
 
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The problem Esken now has are the huge debts and little income. Any sale of the airport would see a massively reduced price with no based airlines. Are we about to witness another Manston?
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Old 11th Aug 2021, 07:53
  #276 (permalink)  
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Sounds just like Luton Airport then. Southend, like Luton, is still owned by the local council except Luton is lending its airport up to £200m, as they had set up a middle company that used to receive an income as landlord. I can't see how Esken could sell the airport, as they don't own the freehold but they can sell its lease.

But according to the airports website

In the 1990s, Southend Council ended its long-running ownership of the airport, and sold the site to Regional Airports Ltd.
Yet according to the Council's website

Southend Council owns the freehold of the airport, but it has been leased since 1994 to London Southend Airport Company Limited, which is now a subsidiary of the Stobart Group.
All very confusing

Last edited by LTNman; 11th Aug 2021 at 09:11.
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Old 11th Aug 2021, 08:46
  #277 (permalink)  
 
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from the Regional Airports Ltd website:
The business and assets of London Southend Airport were acquired in April 1994 and those of London Biggin Hill in May 1994. Both airports were in a rundown and loss making condition.

In 2008, and after successful and extensive re-development of London Southend Airport, with planning consent for a new railway station and CAA agreement in principle for a runway extension, the business and assets were sold to Stobart Group Limited.
https://www.regionalairportslimited.com/
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Old 11th Aug 2021, 09:16
  #278 (permalink)  
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Ah so it was Regional Airports Ltd who had the vision but Stobart had the money.
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Old 11th Aug 2021, 11:11
  #279 (permalink)  
 
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Southend Borough Council own the freehold of SEN and Southend Airport Company Ltd. (SACL) hold a long lease of the site. Carlyle Global have recently provided a £125million loan facility to Esken which is convertible to a 30% equity stake in SACL at their option. It will be interesting to see the Carlyle reaction to RYR leaving SEN. Will they regret making the loan or will they view this latest setback as an opportunity to acquire not just 30% of the equity but perhaps the whole thing. Their problem as I see it is that they would end up owning just the Lease so could not redevelop the site for another, much more profitable, use.
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Old 11th Aug 2021, 11:37
  #280 (permalink)  
 
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If repayment of principal on the loan has not begun substantially... a £125m valuation of 30% of the airport lease implies 100% is worth £416m
For an airport which will have 3 scheduled flights per week from 01 November, and very little rights around cargo, that's a pretty expensive valuation. One would want something else in the mix to be worth paying such a high price
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