Originally Posted by anothertyke
(Post 10392521)
Is it just costs though? I would have said it's markets as well. Thinking back to the days when BMI was strong at Leeds/Bradford, they had the small jets operating to Paris, Brussels, Edinburgh and Glasgow. None of those are viable business/ high end leisure three per day routes now. Those markets have gone, some to rail, a bit of Paris to Jet2, maybe some to business jets. The space in which to operate anything scheduled smaller than a 737 has got smaller and smaller. The contract market such as Toulouse, Stuttgart, oil industry traffic etc seems to have got weaker. Cost control--- sure, but that can only take you so far.
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Loganair are taking on NCL-BRU and NCL-SVG from the end of March in addition to the ABZ routes. Good to see them step in so soon.
https://www.loganair.co.uk/flybmi-update-17th-february/ |
These Legacy markets CDG AMS FRA BRU etc were all strong years ago before the Lo-co's and the euro-star train, plus the workplace has changed drastically as to how folk go about their business and arrange meetings today
- Scheduled airlines (well the ones that still survive) have seen their bread and butter route profits dismally fall away - The whole airline demography has changed for ever. What to do? |
Originally Posted by adfly
(Post 10392697)
Loganair are taking on NCL-BRU and NCL-SVG from the end of March in addition to the ABZ routes. Good to see them step in so soon.
https://www.loganair.co.uk/flybmi-update-17th-february/ |
Originally Posted by rog747
(Post 10392724)
These Legacy markets CDG AMS FRA BRU etc were all strong years ago before the Lo-co's and the euro-star train, plus the workplace has changed drastically as to how folk go about their business and arrange meetings today
- Scheduled airlines (well the ones that still survive) have seen their bread and butter route profits dismally fall away - The whole airline demography has changed for ever. What to do? You are wasting too much time commuting to an airport, security, boarding and unforseen delays and hiccups, it's just not sensible or affordable for businesses to carry those costs anymore. Even c-suite levels can longer justify a corp jet expense. Today's fast paced business world can achieve so much productivity through very advanced video conferencing technologies with virtual whiteboards and file sharing. |
Parent Company
Maybe some don't realise that Flybmi and Loganair have/had the same parent company!
The profitable routes will be snapped up quickly as they knew months ago this was going to happen. Give it a few months to transfer a/c leases and crew and it all falls into place. Smart from a management point of view but doesn't help the stranded passengers or crew who don't know their future. Take a look at the past results and this wasn't a surprise to anyone... especially the management of both companies! |
Originally Posted by runway30
(Post 10392739)
Hardly surprising that they knew which routes they were going to cherry pick. |
Rather convenient really
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OTOH, there is hardly any other airline left in the UK that could take over such routes. Flybe itself on life support and Eastern apparently also not in great shape. The rest are niche/fringe operators such as Aurigny, Blue Islands, Skybus not suited for that type of expansion. And to be honest, I am not sure if Loganair is currently executing a smart strategy by expanding and taking on Embraer 135s....
In other news, just stumbled across a horrible piece of journalism in the Daily Mail that mentioned "low cost airline Flybmi" and showed deserted check-in desks at the airline's EMA base.... |
If it were planned, then why not transfer the routes over first and then go into admisitration. They are only causing more issues by doing this... (if that is the case).
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Selling assets below market value just before bankruptcy can get you into trouble with the courts. The priority for AIL will likely have been to ensure Loganair is not drawn into the bankruptcy and is able to continue to operate without any additional legal risk. If the directors of AIL / Loganair were doing their job correctly, they will presumably have sought expert legal advice on ensuring a bankruptcy firewall was created between Loganair and bmir
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Originally Posted by toledoashley
(Post 10392858)
If it were planned, then why not transfer the routes over first and then go into admisitration. They are only causing more issues by doing this... (if that is the case).
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Despite having the same parent company, if an airline goes bust, wouldn't the airport operator put the slots back up for sale/auction/whatever? Can another airline just take them straightaway? Surely if there is some value to the slots then they should be paying the administrator for them to give back towards the creditors?
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Slots at Heathrow have a high value, those at Gatwick have (significantly lower) value. However are slots at Aberdeen, Bristol or East Midlands sufficiently scare to trade for money ? There's nothing listed on the ACL website showing slots being traded at these 3 airports
https://www.acl-uk.org/completed-trades/ |
There are many things in the last ten years that have defeated best intentions of managements in a wide variety of commercial areas - not just airlines.
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DAT taking over Aberdeen-Esbjerg
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Originally Posted by BirdmanBerry
(Post 10392888)
Despite having the same parent company, if an airline goes bust, wouldn't the airport operator put the slots back up for sale/auction/whatever? Can another airline just take them straightaway? Surely if there is some value to the slots then they should be paying the administrator for them to give back towards the creditors?
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Most of BMs fleet, except a few of the white aircraft are owned by Airline Investments Limited, the holding company for LM and BM.
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An insult to those staff who have lost jobs and customers who have lost money that the sister airline to the one that shut down can suddenly cherrypick and takeover over routes as they please. What’s next? Have their aircraft too? |
Originally Posted by bravoromeosierra
(Post 10394521)
An insult to those staff who have lost jobs and customers who have lost money that the sister airline to the one that shut down can suddenly cherrypick and takeover over routes as they please. What’s next? Have their aircraft too? |
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