Openskies
As you will have realized yourselves, we are facing very difficult times. With the worldwide
crisis in the financial markets, and the resulting global economic slowdown as major countries move towards recession, the airline industry is suffering the worst crisis in its history, compounded by the erratic nature of oil prices. (Although they are now falling sharply, many carriers have hedged at higher levels). The crisis is deeper, more protracted, more fundamental than 9/11, the Gulf War or any of the previous shocks that have rocked our industry. All airlines are suffering – including the long established full service airlines – and more than 30 airlines have gone bust this year. OpenSkies and L’Avion are of course also impacted – the cities of New York, Paris and Amsterdam that we serve are deeply affected by the financial and economic maelstrom. Our revenues are below target through a combination of lower volumes and yields, and as a priority we must take actions to ensure we keep within our cash reserves. We must build on our strengths: we have people who care; we have a great product which is exactly right for the market at this time; we have a single aircraft type which simplifies our operation; we are small and can move quickly to respond to changing market conditions. We must really maintain our focus. We have decided to delay expansion: we will operate with our existing four aircraft and defer delivery of the fifth aircraft (previously planned to enter operation in March 2009) until the economic environment improves. We will also engage in a battle to reduce our costs, examining each and every cost area for savings. We will look to all of you to help us with these challenges – as well as continuing to do your job, and to make sure we delight each and every customer. It is imperative that OpenSkies and L’Avion act as one company so we are best placed to get through these difficult times and achieve our shared vision of long-term success in the point to point premium travel market. With immediate effect, we will use both company logos and names in any external or internal communications. We will also act as one company in commercial and financial decisions. In particular, we will have a two-way codeshare between OpenSkies and L’Avion from 18 November, so we can sell tickets under either the A0 or EC code from any of our distribution points on any of our four aircraft. Operational integration requires a decision on which Airline Operating Certificate (AOC) we maintain as we become one single airline. We have now taken the decision to operate under a single French AOC, after very detailed and careful organisational, commercial, operational and cost analysis. Paris was chosen for two major reasons: - It is a strategic point on our network (at least half of our routes are likely to originate from Paris) - We can reduce cost and complexity and improve communications between managers and operational employees by focusing our headquarters and European operations in Paris. The timing for full integration of our two great little airlines will be driven by a number of factors and may proceed more rapidly in some areas than others, but will be completed with determination as quickly and effectively as possible. :yuk::yuk::yuk::yuk::*:* |
after very detailed and careful organisational, commercial, operational and cost analysis. |
Good. I'd give it 6 months tops.
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Is this part of some cunning "Trojan Horse" plan ?
Sooner OS is dead the better, for all the industry's sake. |
We have now taken the decision to operate under a single French AOC... Knucklehead.:= |
French Social Taxes......Excuse my ignorance but would EC have to pay this when the Cabin Crew are JFK based
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Yes one a/c type but both engine types.:uhoh:
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And how long ago was the L'Avion acquisition? Did Dale do any planning prior to that at all?
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It's a shame that when it does all come crashing down that the only one who will be safe job-wise is Knucklehead himself. Or maybe the BA board should get rid of him for wasting all that cash....
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has them rarely breaking double figures on the AMS Oh yes, after searching the internet I see they fly the route since 15 october, but jeezz, what a bad marketing. Nobody around here (apart from the aviation community, and then still not many of those) has really heard about Open Skies. How can you sell your tickets then? I think you can safely blame marketing! |
I always suspected that the whole open skies thing was ill conceived, and fear now that this is the beginning of the end. Not very long now till its wholly divested to the French, with BA holding only a minority stake.
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Since when was OpenSkies supposed to make money? Can anyone else imagine starting a new business only airline with obselete aircraft in the current financial climate and expect it to be profitable?
The whole concept is to introduce new T&C's for pilots /cabin crew and a low cost management structure. It will take time, but gradually more and more aircraft and routes that BA Mainline could operate will go to OS. BA already has the spare aircraft, crew and product, so why mess about with OS? British Airways are so desperate to make it work, they are putting tent cards advertising OpenSkies on the meal trays of its own Club World passengers out of North American stations. In other words BA taunts its own customers with the fact that they paid twice as much (or more) to fly BA with a proper flat bed, than OS. What is not advertised is that the OS 757's do not have BA's AVOD entertainment system as weight is critical (especially in the winter). Now Air France has put its tanks on BA's lawn by switching their B777 from LHR/LAX to JFK, arguably the world's most prestigious route. What is BA's response? An OS 757? What a joke. |
Clearly linked with the re-registering of the B757 on the new Isle of Man register as M-ERDE.
( with thanks to human factor ) |
The whole concept is to introduce new T&C's for pilots /cabin crew and a low cost management structure. Instead, the whole exercise has been an avoidance of mainline Ts & Cs, which while understandable, should not have been the main driver behind the business proposition. |
British Airways are so desperate to make it work, they are putting tent cards advertising OpenSkies on the meal trays of its own Club World passengers out of North American stations. French Social Taxes......Excuse my ignorance but would EC have to pay this when the Cabin Crew are JFK based. |
There has got to be another explanation as to why the company is adopting a French Aoc and intends to be run as a French company. Anyone who has ever tried to start a business in France, or indeed had French employees knows that the costs are considerably more than in other European countries. Not only that, the employment laws are very much geared in favour of employees, and it is extremely expensive to get rid of staff if redundancies are required, so much so that it is easier and cheaper to cut back on non-French staff.
You simply don't go to France if you want to cut costs, so there must be another angle. |
Possibly preparing a sacrifice to allow a BA-AA deal to proceed
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Possibly preparing a sacrifice to allow a BA-AA deal to proceed |
"I dont believe it" - a Victor Meldrew Moment - for once I agree with 411a.
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Un-needed airline....enough transatlantic J/F capacity already, given the economic climate.
Open Skies will go to the wall rapidly with a French AOC, and pourquoi pas? Sorry for the permanent employees, less so for the over-paid sub-contractors from TCX, FCA and the rest. |
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