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Glasgow "Transatlantic hub ?"

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Old 10th Jul 2003, 20:26
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Glasgow "Transatlantic hub ?"

From today's Herald:

SCOTLAND'S first low-cost airline is moving from Prestwick to Glasgow Airport because potential partner airlines want their passengers to fly to Glasgow.

Flyglobespan.com is in talks with North American airlines about joining forces to operate new scheduled services to and from Scotland.

The new services will start next summer, but Tom Dalrymple, the owner and managing director of parent company Globespan, has decided to switch its entire west coast operations to Glasgow from October.

Prestwick has been the main west coast base for flyglobespan.com since it started flying in March, with daily services to Palma and twice-weekly flights to Nice, Malaga, and Rome.

However, Dalrymple said it made sense to move to Glasgow, where until now flyglobespan has had just four flights per week to Malaga, because that was where the new transatlantic flights would be based. He said: "Prestwick is a fantastic facility with marvellous people. We have loved working there.

"But we are a transatlantic operator and our long-term plans are to engage with company partners in the US and Canada in hub and spoke operations.

"They have said they don't think they can educate the market to come to Scotland through Prestwick.

"It really means we must focus on Glasgow."

Dalrymple's decision is also a significant reversal for Prestwick Airport, whose managers have claimed that airlines were deserting Glasgow Airport because it was too expensive.

Sources said flyglobespan.com would pay more to use Glasgow than Prestwick but that was outweighed by the benefits of having all its flights based at Glasgow.

Globespan has operated charter flights to Canada since the 1970s, but plans to start more flexible scheduled services with its partners next summer.

Dalrymple said his Scottish customers had flown to Toronto and then to several destinations within Canada for years, and he wants to operate the same system in reverse.

That would mean North Americans flying to Glasgow, spending time in Scotland and then using flyglobespan.com for a sunshine break in Spain, France or Italy.

Meanwhile, Dalrymple said Glasgow and Edinburgh airports would be the airline's two bases for its winter timetable, which will run from October to March.

Glasgow services will be to Tenerife, Malaga, and Alicante, and there will be Edinburgh flights to Alicante and Malaga.

Dalrymple said there would also be a major expansion in scheduled services from Scotland to sunshine and citybreak destinations in southern Europe for next summer.

He plans to lease up to four more planes to add to the two 142-seat Boeing jets that flyglobespan.com has used this summer.

Dalrymple said flyglobespan.

com would carry 160,000 passengers this summer, ahead of target, and had already started to make a profit. More than 80% of seats are sold on the internet.

New flights from Glasgow and Edinburgh to Exeter were announced by airline Flybe yesterday. They will start next March.

- July 10th
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Old 10th Jul 2003, 23:03
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Looks that way until EDI gets a new owner to challenge blatant
categorisation.

BAA data for June (Scottish Airports).

Edinburgh : An increase of 11.8% / 70,700)
compared to June 2002. Annual growth 11.9%.

Aberdeen : A decrease of 0.1% compared to
June 2002. Annual growth 0.6%.

Glasgow : An increase of 3.1% / 24,600)
compared to June 2002. Annual growth 7.3%
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Old 10th Jul 2003, 23:27
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Invest in the facilities at EDI - then you will be able to operate properly to the continent etc.

Market forces - simple as that.
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Old 10th Jul 2003, 23:56
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>>Invest in the facilities at EDI - then you will be able to operate properly to the continent etc.

Market forces - simple as that.<<

Sound, logical advice ecj ...Will BAA heed the advice or will they continue to neglect their most popular Scottish
Airport.?
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Old 11th Jul 2003, 00:46
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Return on capital employed

I guess the BAA take robust investment decisions when they spend money. Maximise the return for the shareholders. Like it or not, that is the reality of life. Popularity is not part of the equation per se.

I would like to see Carlisle Airport expand as well - to operate both domestic and holiday charters. Is it going to happen ?

I think it would come under "high risk"- acceptable return on capital employed is far from certain. A leap of faith would be required.
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Old 11th Jul 2003, 03:00
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ecj,

ROCE to Mr Curry is probably some hard stuff you eat on holiday.

Last number I looked at had a ROCE exactly the same at GLA and EDI. The capex at EDI on the new tower etc would mean that GLA was adding much more value.

Gusty
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Old 11th Jul 2003, 03:26
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Looking ahead to future projections on growth for both
EDI and GLA.

Projections based on current passenger levels and current
annual growth rates.

EDI GLA EDI deficit
06.03 7,236,800 8,012,900 776,100
06.04 8,098,000 8,597,800 499,800
06.05 9,061,600 9,225,500 163,900

GLA deficit
06.06 10,140,000 9,898,900 241,000

The month of June 2006 "might" look a bit different
from June 2003...
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Old 11th Jul 2003, 03:52
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If Mr Curry is so right, why cannot BAA see it ?

Perhaps the difference is that they are in it to make money, and not be ruled by sentiment. Sound business decisions are the way forward.
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Old 11th Jul 2003, 05:58
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I see Mr Curry took only one post to change this thread from one about new flights for Glasgow to his usual whinging about the BAA.....
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Old 11th Jul 2003, 16:29
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I see Mr Curry took only one post to change this thread from one about new flights for Glasgow to his usual whinging about the BAA.....
Quite. Now I'll try to drag this back on topic, or rather to address the title of the thread - could GLA be considered a "hub"? Sure, there are plenty (in Scottish terms) of transatlantic flights, but where are the feeder flights? I'm not counting Barra and Benbecula, etc. All I can think of is the flybe "codeshare" from Birmingham, but I cannae see that being over popular with the Brummies.
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Old 11th Jul 2003, 18:52
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routes to & from GLA & EDI

A closer scutiny would reveal that BA city express & Loganair also
feed passengers into Glasgow, and for that matter Edinburgh as well, who then go on to other destinations.

No doubt Mr Curry will have the up to date breakdown of numbers for both airports.
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Old 11th Jul 2003, 19:19
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Absolutely ecj (although I don't think that we are talking about many transatlantic interlining pax on these routes) - but since bmi stopped doing double drops on the Copehagen route, there is no flight from EDI. Now what kind of transatlantic hub does not have a flight from the capital city?
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Old 11th Jul 2003, 21:22
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Bounty,

There are frequent flights from LHR/LGW/STN to GLA.

This capital city stuff is a load of rubbish really. Does anyone know the pax numbers for Canberra in relation to Sydney ?

Gusty
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Old 11th Jul 2003, 21:35
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bounty, I think you will find that bmi stopped doing their double-stops so they could offer a direct GLA-CPH service, but more importantly a new twice daily EDI-CPH service offering the conections as well as a better business schedule. Prior to this bmi didn't offer a morning flight from EDI to CPH!

This was at the same time as them starting EDI-SYY and improving their EDI-MAN times for the USA connections from Manchester (IAD & ORD). They have sinced also commenced EDI-JER daily! This goes alongside their existing BRU, LBA & LHR services.

Obviously bmi saw the potential that EDI has to offer for a full-service airlines vs that of GLA where it only offers LHR, MAN, CPH & LBA! Oh and JER at weekend if that counts as a route!!

In another case, DUO decided to launch MXP, GVA, ZRH & OSL from EDI, not GLA, as they too saw the benefits EDI can bring from a business sense, but especailly for inbound tourism (I personally love Glasgow, one of my favourtie cities, but EDI certainly has more appeal overseas).

Certainly this side of things will make EDI also more attractive for longhaul flights. The one thing that GLA does have though is the population (although if there was a EDI-JFK service I'm sure people in GLA will drive to EDI), but, perhaps and more importantly, the airport services.
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Old 11th Jul 2003, 21:42
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Does anyone know if flyglobespan will continue to operate with two aircraft over the winter? They don't seem to be offering that many destinations. If they're only serving them a couple of times a week from EDI and GLA then do they need 2 aircraft, or are they maybe going to offer quite frequent (5x a week-ish) flights to the destinations they do serve?

Funny they're not serving PMI over the winter - they have daily flights there from PIK (and a few from EDI?) at the moment.

TBH, they've always seemed a bit expensive when I've looked into booking flights with them. They might have a problem if a serious competitor (easy, baby etc) turned up.

Also - anybody know what Air Scotland are planning for the winter?
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Old 11th Jul 2003, 22:21
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Keep an eye on the Aer Rianta breakup of DUB, ORK and SNN into separate companies - I wonder does anyone in Holyrood/Westminster have such thoughts.
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Old 12th Jul 2003, 03:13
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crazy idea - you are preaching to the converted.

GustyOrange - I am just trying to figure out (in a longwinded, roundabout kinda way) what you mean by transatlantic hub. Hub for who?

MarkD - I see that DUB is to assume EUR100M of debt previously ascribed to Shannon and Cork. I wonder how that would work out up here?
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Old 12th Jul 2003, 04:02
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Bounty,

I'm well aware that no airport north of LHR has the potential to offer frequent flights to a variety of destinations across the Atlantic.

The title of the thread was a little mischievous on my behalf.

Apologies

Gusty

edited for typo
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Old 12th Jul 2003, 20:44
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The article is saying that flyglobespan see GLA as a hub for shorthaul European flights, fed by a few transatlantic destinations.

The suggestion is that North Americans will use GLA as their entry point to Europe, hopefully stop off in Scotland for a while, then continue on to Spain, France, etc.

That has two benefits for Scotland.

- More tourists passing through Scotland rather than SE England.
- More flight options, not only to North America but probably also to Europe.
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Old 12th Jul 2003, 21:59
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having re-read the article more closely I must apologise to Gusty - it is now very clear to me that this is not his crackpot idea
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