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-   -   Flybe-9 (https://www.pprune.org/airlines-airports-routes/599822-flybe-9-a.html)

Skipness One Foxtrot 19th Nov 2018 20:54


I'm prepare to accept that, on any sensible accounting basis, the presence of those remaining routes adds move value to the overall BA operation than their absence would. But that's not the same thing at all as saying that there are profitable in their own right.
1) LHR base fares are relatively higher than LGW
2) LHR last minute fares are also higher than LGW
3) LGW remains connected to EDI/GLA as part of the BA network
4) Cost base is now relative similar
Given LGW as a stand alone operation has been forced to make each route stand on it's own merits, I would conclude that BA's remaining LGW domestics are likely profitable as BA and EZY are still competing and BA has no strategic benefit in running at a loss. Also given the revenue on the LGW routes is apparently less, LHR-GLA/EDI should be in profit so long as revene allocation to short haul on long haul connections is well managed, it was this that finally killed BFS-LHR.

And if you're British Airways and you can't make money on GLA/EDI to LHR, the core domestic in your own freaking home market,you really should just give up and go home now.

flybe are not helped in that EDI consider them a second tier carrier and so bussing is now the norm at both ends on LHR-EDI, whereas BA are more likely to get an airbridge, though my last B767 up ended up parking on 212 at Cargo.....

PDXCWL45 19th Nov 2018 20:55


Originally Posted by stewyb (Post 10314940)
This article has been re-hashed from the FT and placed in BE's local rag. Wouldn't read to much in to this and would assume the local press are pro-actively pushing for BE's existence (and quite rightly). EZY would be a wise choice however for any takeover!

And if that happened it would be bye bye Flybe from Exeter airport and Cardiff Airport as Easyjet is only interested in operating from Bristol in the South West of England and Wales.

Albert Hall 19th Nov 2018 21:07

I may be missing something, but why on earth would easyJet want to complicate its very simple fleet by adding Q400s, E175s and E195s and a load of poor contracts to lease or finance these aircraft? The risks would surely outweigh the benefits of sitting on the sidelines, letting it go bust and then stepping in to the markets in which you saw value. The absence of any clear bidder already suggests that many others are taking the same approach.

The96er 19th Nov 2018 21:33


Originally Posted by Albert Hall (Post 10315066)
I may be missing something, but why on earth would easyJet want to complicate its very simple fleet by adding Q400s, E175s and E195s and a load of poor contracts to lease or finance these aircraft? The risks would surely outweigh the benefits of sitting on the sidelines, letting it go bust and then stepping in to the markets in which you saw value. The absence of any clear bidder already suggests that many others are taking the same approach.

Any approach by EZY would focus on cherry picking selected routes that would sustain an up-gauging to an Airbus.

Albert Hall 19th Nov 2018 21:34

That's exactly my point. If you buy Flybe, you inherit the rest of the organisation that goes with it, which you're agreeing would play no part in easyJet going forward.. Why would you do that?

SealinkBF 19th Nov 2018 22:00


Originally Posted by Cyrano (Post 10315051)
Even if the competition seems to be well on the way to eliminating itself...?


Flybe still have assets. easyJet Connect anyone?
And if Flybe fell into the hands of IAG, Ryanair (remember buzz?) etc. All pie in the sky. LOVE speculating.

Brigantee 19th Nov 2018 22:33


Originally Posted by Albert Hall (Post 10315066)
I may be missing something, but why on earth would easyJet want to complicate its very simple fleet by adding Q400s, E175s and E195s and a load of poor contracts to lease or finance these aircraft? The risks would surely outweigh the benefits of sitting on the sidelines, letting it go bust and then stepping in to the markets in which you saw value. The absence of any clear bidder already suggests that many others are taking the same approach.


They would aquire a great maintenance outfit maybe they could expand the Exeter base to carry out major servicing of the easyjet fleet instead of farming the work out.

Skipness One Foxtrot 19th Nov 2018 23:04

Isn’t that what some said about Monarch?

Doc Q 19th Nov 2018 23:38


Originally Posted by Brigantee (Post 10315104)



They would aquire a great maintenance outfit maybe they could expand the Exeter base to carry out major servicing of the easyjet fleet instead of farming the work out.


Yeah right , Just deadleg the aircraft down to Devon into hangars that won’t take them and staffed by a workforce who have never seen a Airbus , Sounds like a plan ,

Get real.

Sharklet_321 20th Nov 2018 00:55

Exactly. What on earth would easyJet see in Flybe??? The media has no clue on this one i'm afraid. Stobart is the more likely candidate - however it depends who else out there is interested because Stobart do not have a limitless cash supply. Strangely, they have informed the media that they cannot comment when questioned on whether they are bidding. This is very different to their previous very open announcement about interest. I doubt they are as keen this time around despite the bargain basement price.

Interesting to see who finally does catch this falling knife.

HZ123 20th Nov 2018 08:25

I think it would be down to BA. Many have commented on the LGW/LCY slots that maybe worth the cost of the sale price even without the airline. BA then has access to a top up of Flight/Cabin crew minus the recruitment/basic training etc. I cannot see them retaining to much of the network however as many of the same routes were served in the past by BA and deemed unprofitable. The engineering business however good is limited by the size of the aircraft that the hangars can accommodate but maybe a going concern in their own right.

It has been mentioned about BA holding a 15% in FlyBe but I was of the opinion that BA surrendered this years ago, as that share could have cost monies should BE have gone under? Surely the aircrafts can be returned to the lessor? As some threaders have said lets us hope they survive for the many people who gain income from the operation particularly in and around Exeter.

Nil further 20th Nov 2018 08:39

Which makes you laugh harder ?

BA buying it ?
EZY buying it ?

You can be damm sure if EZY didn't want Monarch they sure as hell ain't interested in Flybe .

nguba 20th Nov 2018 08:52

BA sold its 15% stake in Flybe some time ago.

Any decision to buy Flybe will rest with IAG who will only be interested if it thinks Flybe can meet its target return on capital of 15%.

Cyrano 20th Nov 2018 08:53


Originally Posted by HZ123 (Post 10315315)
Many have commented on the LGW/LCY slots that maybe worth the cost of the sale price even without the airline.

Whatever about LGW, LCY slots are not particularly valuable these days. BA already has the lion's share of service from LCY and if flyBE stopped LCY ops, its slots would become available for other carriers - and there isn't exactly a long queue at the moment, as LCY has always been a niche.


Originally Posted by HZ123 (Post 10315315)
BA then has access to a top up of Flight/Cabin crew minus the recruitment/basic training etc.

OK, so in your scenario, BA buys flyBE and then tells the flight crew and cabin crew "please relocate to London now and sign this new BA contract"? Do you not perhaps anticipate some trifling issues with changing contract terms:cool:? If as anticipated any future for flyBE involves at least a downsizing, what does BA gain in staff terms from buying the company with all its baggage that they don't gain from biding their time and then offering jobs to ex-flyBE staff?


Originally Posted by HZ123 (Post 10315315)
It has been mentioned about BA holding a 15% in FlyBe but I was of the opinion that BA surrendered this years ago

Yes, IAG sold the flyBE shareholding in 2014. See for example this news story from 2014. Let's move on from that old news.


Originally Posted by HZ123 (Post 10315315)
as that share could have cost monies should BE have gone under?

:confused: :confused: ​​​​​​​:confused:


Originally Posted by HZ123 (Post 10315315)
Surely the aircrafts can be returned to the lessor?

Lessors are not charities. An airline contracts with a lessor to lease an aircraft for a certain period of time. The lessor takes the risk that the airline may go bankrupt and stop making its lease payments. Otherwise the airline doesn't get a free pass to return the aircraft whenever it wants. Sure, it can try to negotiate an early return with the lessor (n exchange for $$$), but if you're a lessor being offered early return of a pile of 10-year-old Q400s which you were expecting to continue generating cash for you for several years yet, you'll not be particularly accommodating.

I am still waiting for a plausible argument for why someone (anyone) would buy flyBE as is, as opposed to waiting to pick up the pieces, either informally, or by reaching an agreement for "pre-pack administration", essentially saying "you go into Administration and then we'll buy the following bits of you afterwards". The latter lets a buyer cherry-pick what it wants (and lets it avoid taking on liabilities) and is very different to buying the going concern.

Dct_Mopas 20th Nov 2018 08:55

CEO of easyJet was on BBC Radio 4 this morning as it’s financial results day. He was asked about flybe....

https://www.reuters.com/article/us-f...-idUSKCN1NP0MH

shamrock7seal 20th Nov 2018 09:35

There is a rumour doing the rounds about BA Cityflyer and Flybe close to announcing a full merger. I seriously hope not.

cornishsimon 20th Nov 2018 09:40

Doing the rounds where ?

it wouldn’t surprise me in the slightest as iv previously posted.


cs

BA318 20th Nov 2018 10:07

Not heard anything regarding this. I think it could work but we'll see.

Alteagod 20th Nov 2018 10:11

They both have synergies but would Cityflyer want in essence become British Regional Airways? I think they would cherry pick and on another point what would monopolies and merger commission/ aviation regulators have to say on IAG/Easy or Stobart buying BE. Can they scupper any deal or attach conditions?

cornishsimon 20th Nov 2018 10:19

No doubt t if did go ahead things would change over time

however, BA would be getting a maintenance facility for the E jets and the ability to bring that work in house rather than outsource it which would save a small fortune.

Over time iv no doubt that the core BE flying would be kept and the addition of a
BA flight number might even increase numbers flying into MAN/DUB as it would allow easier through selling onto EI and other OW airlines.

Some routes would no doubt vanish. However I think that’s inevitable really as that’s probably the reason BE are as they are


cs



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