Flybe nearly went Broke...
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Flybe nearly went Broke...
From today's Guernsey Press:
Flybe needs fees cut
by Carl Walker
FLYBE came close to bankruptcy last year.
The news was revealed in a letter outlining why the airline recently demanded a reduction in landing fees.
Channel Islands general manager Ian Taylor (pictured) explained in the letter to the Guernsey and Jersey Transport Boards how cash injections were desperately needed to ensure the airline’s survival.
This follows Tuesday’s threat that the low-cost airline could cut the Channel Islands’ routes to Birmingham and Exeter unless landing fees in Jersey and Guernsey were reduced.
In his letter, Mr Taylor said: ‘As you may be aware, we incurred significant losses in the years 2001-2 and 2002-3, with our shareholders having to put funds into the business in order to ensure its survival.
‘Last year, the shareholders insisted that we must operate our business without the need for a further cash injection from them.
‘This required a very significant turnaround from the previous year.’
It seems from the letter that the move to create Flybe from British European was a success.
The letter concludes: ‘I am happy to report that these changes were successful and ensured the present and future viability of our business.’
However, Mr Taylor predicted that the airline was preparing itself for another year of financial deficit.
‘Flybe will report either a very small loss or might break even this financial year. The turnaround has taken a great deal of pressure off everyone involved.’
On Wednesday, the Guernsey Press revealed that the airline effectively issued an ultimatum to the Channel Islands and its transport authorities that it would pull out of less profitable routes if landing charges were not reduced.
At a London press conference, Flybe managing director Jim French said it would be a great tragedy for the islands if the year-round services disappeared.
He added that airport charges were now the biggest single cost involved in running what was Europe’s largest independent low-cost airline.
Transport Board president Mike Torode said that he had not seen any correspondence from Flybe and could not comment.
‘It will be considered at the next Transport Board meeting, which is on 6 May,’ he said. ‘It happens to be one of the occasions of the year where we are seeing Flybe anyway. We will have the discussion with them when they arrive.’
Now....question is....whether Walker family would pull plug...not too likely they've just ponied up for Q400s....or whether this is negotiating tactics over landing costs....but then again 'we're poor...we're broke...' tough sale after one of year's biggest civil aircraft orders......conspiracy...or cock up.....Ah well, look on the bright side, all those passengers not coming from Exeter or Birmingham won't clutter up that nice new empty terminal building...if the contractors can get on with building it, rather than slagging each other off in public....and some people think Guernsey is dull!!!
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Flybe needs fees cut
by Carl Walker
FLYBE came close to bankruptcy last year.
The news was revealed in a letter outlining why the airline recently demanded a reduction in landing fees.
Channel Islands general manager Ian Taylor (pictured) explained in the letter to the Guernsey and Jersey Transport Boards how cash injections were desperately needed to ensure the airline’s survival.
This follows Tuesday’s threat that the low-cost airline could cut the Channel Islands’ routes to Birmingham and Exeter unless landing fees in Jersey and Guernsey were reduced.
In his letter, Mr Taylor said: ‘As you may be aware, we incurred significant losses in the years 2001-2 and 2002-3, with our shareholders having to put funds into the business in order to ensure its survival.
‘Last year, the shareholders insisted that we must operate our business without the need for a further cash injection from them.
‘This required a very significant turnaround from the previous year.’
It seems from the letter that the move to create Flybe from British European was a success.
The letter concludes: ‘I am happy to report that these changes were successful and ensured the present and future viability of our business.’
However, Mr Taylor predicted that the airline was preparing itself for another year of financial deficit.
‘Flybe will report either a very small loss or might break even this financial year. The turnaround has taken a great deal of pressure off everyone involved.’
On Wednesday, the Guernsey Press revealed that the airline effectively issued an ultimatum to the Channel Islands and its transport authorities that it would pull out of less profitable routes if landing charges were not reduced.
At a London press conference, Flybe managing director Jim French said it would be a great tragedy for the islands if the year-round services disappeared.
He added that airport charges were now the biggest single cost involved in running what was Europe’s largest independent low-cost airline.
Transport Board president Mike Torode said that he had not seen any correspondence from Flybe and could not comment.
‘It will be considered at the next Transport Board meeting, which is on 6 May,’ he said. ‘It happens to be one of the occasions of the year where we are seeing Flybe anyway. We will have the discussion with them when they arrive.’
Now....question is....whether Walker family would pull plug...not too likely they've just ponied up for Q400s....or whether this is negotiating tactics over landing costs....but then again 'we're poor...we're broke...' tough sale after one of year's biggest civil aircraft orders......conspiracy...or cock up.....Ah well, look on the bright side, all those passengers not coming from Exeter or Birmingham won't clutter up that nice new empty terminal building...if the contractors can get on with building it, rather than slagging each other off in public....and some people think Guernsey is dull!!!
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ACRONYM: FLY BEFORE EXTINCTION (FLYBE)
If HOGG is about maybe now he will agree that:
FLYBE = FLY BEFORE EXTINCTION
Never has an airline had such an appropriate a acronym!
Maybe The Scotsman`s wife has dreamed up a bit more strategy in the bath as that is how he said he got to British European if my memory serves me right. Oh wait a minute, maybe it was his daughter being seduced by low cost airlines
I hear that the management team are now being asked to take a 40% pay cut! Death by a thousand cuts or less!
As for the CRJ crews they have my sympathies
Ock now, no need 4 dat! Hogg
FLYBE = FLY BEFORE EXTINCTION
Never has an airline had such an appropriate a acronym!
Maybe The Scotsman`s wife has dreamed up a bit more strategy in the bath as that is how he said he got to British European if my memory serves me right. Oh wait a minute, maybe it was his daughter being seduced by low cost airlines
I hear that the management team are now being asked to take a 40% pay cut! Death by a thousand cuts or less!
As for the CRJ crews they have my sympathies
Ock now, no need 4 dat! Hogg
Last edited by Hogg; 1st May 2003 at 07:40.
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Standard Noise - It looks like about £150M from The Sunday Times rich list last weekend as Fred`s estimated wealth was shown as reduced from £800M to £650M and Flybe was highlighted as the loss making element of the empire.
The sooner these jokers are off the Islands the better and we can then expand a real service provider. Their latest ploy has been to tell the Harbours and Airports Authority that they will have to give up their current services if the do not get further discounts/support.
I cannot wait for this to happen soon enough!
The sooner these jokers are off the Islands the better and we can then expand a real service provider. Their latest ploy has been to tell the Harbours and Airports Authority that they will have to give up their current services if the do not get further discounts/support.
I cannot wait for this to happen soon enough!
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12-o'clock high - go and get a life !!!! that or go back to living with yr head up in the clouds !!
JER/GCI have the highest a/port fee's outside of the london airport's and for the service that are provided to fraggle rock and it's little cousin the airline should get a better service for it's money - especially as it appear's that there seem's to be some form of colusion between the airport authorities and BA. If BA want a extension it is granted with NO questions asked if anybody else want's one - well it would be easier to get blood out of a stone !!! Whilst flybe provide most of the revenue services into the channel islands and carry the majority of the tourist's and local traffic for the resident's going back and forth to the mainland they should be given a better deal from the harbour and airport's authority as without flybe - the islands economy would probably crumble.
JER/GCI have the highest a/port fee's outside of the london airport's and for the service that are provided to fraggle rock and it's little cousin the airline should get a better service for it's money - especially as it appear's that there seem's to be some form of colusion between the airport authorities and BA. If BA want a extension it is granted with NO questions asked if anybody else want's one - well it would be easier to get blood out of a stone !!! Whilst flybe provide most of the revenue services into the channel islands and carry the majority of the tourist's and local traffic for the resident's going back and forth to the mainland they should be given a better deal from the harbour and airport's authority as without flybe - the islands economy would probably crumble.
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They've asked for a reduction in costs because they are unable to charge for flights between Jersey and Guernsey - this is Aurigny's patch. When they operate flights between JSY/GCI and say BHX, they are being charge two lots of landing fees in the islands, and yet are unable to charge passengers for operating between the islands.... seems fair to me....
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12-0-clock-high
A search of your posts does reveal a certain monotony....ALL your posts have been about how bad FlyBE is...how they are doomed and so on...you first cracked your 'FlyBE = Fly Before Extinction' "joke" in September 02...and FlyBE is still around....why are you?
A search of your posts does reveal a certain monotony....ALL your posts have been about how bad FlyBE is...how they are doomed and so on...you first cracked your 'FlyBE = Fly Before Extinction' "joke" in September 02...and FlyBE is still around....why are you?
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BOILED FROG SYNDROME IN FLYBE
Hey guys I do not wish to gloat! But there is an element of I told you so about getting a better service onto the Islands. With the States buying Aurigny the outlook is getting better all the time!
Glad to see that these guys are not going to compete and now therefore service standards can get back to where they out to be!
(sorry about the pun!)
Word on the Islands is that the family and hence the trust is getting a bit fed up of bad news all the time and management changes/disposals are on the cards.
Watch this space.
Glad to see that these guys are not going to compete and now therefore service standards can get back to where they out to be!
(sorry about the pun!)
Word on the Islands is that the family and hence the trust is getting a bit fed up of bad news all the time and management changes/disposals are on the cards.
Watch this space.
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They might ask for it back as they will need it to train all the new crews to replace the mass exe(ter)dos
The MD might not like Pilots but his Aircraft dont funtion to well when they are not there.
I wish all the crews that are staying all the best,because it is with your exceptional good will that the company have got this far and I wish you sucess for the future.
Rdgs K.I.L.
P.S. the grass is greener (or in some cases orange)on the other side,you cant work any more than you are at the minute.
The MD might not like Pilots but his Aircraft dont funtion to well when they are not there.
I wish all the crews that are staying all the best,because it is with your exceptional good will that the company have got this far and I wish you sucess for the future.
Rdgs K.I.L.
P.S. the grass is greener (or in some cases orange)on the other side,you cant work any more than you are at the minute.
