Oh dear!!!!!!!!!!!TBI

[Buster the Bear]

08 October 2003

Luton slowdown hits TBI

Shares in TBI fell 1.75p to 63p Tuesday after the company issued a pre-close trading statement showing July-September quarterly passenger numbers at Luton, its biggest airport, remained flat year-on-year.

TBI’s four European airports – Luton, Belfast International, Cardiff and Stockholm-Skavsta – handled a total of 4.2m passengers during the quarter, 14% more than in the corresponding period of 2002. Low-cost traffic led the growth, increasing by 29% to 2.8m passengers, while full service numbers fell 25% to 272,700 and charter slipped 1% to 1.2m.

For the six months to end-September, total passenger numbers at the four airports improved by 16% to 7.8m.

During the Jul-Sept quarter Luton handled 2,033,800 passengers. Numbers on full service scheduled flights increased by 27% and on budget flights by 3%, but this growth was offset by a 16% fall in charter passengers.

TBI said the removal by MyTravel of its one Luton-based aircraft had contributed to the charter decline. (Buster-No mention of the Air 2000 unit based 7 days a week for the first time and the My Travel work going to Monarch and other carriers). However, the company added it expected Luton to receive a boost in the near future from an expansion of services by easyJet, which in August confirmed it intended to increase its fleet based at the airport from 12 to at least 14 aircraft. In addition, Italian low-cost carrier Volare announced last month it would establish a base at Luton, operating flights to Venice, Rimini and Cagliari.

Elsewhere, Belfast International handled 1,207,100 passengers during the quarter, an increase of 9% year-on-year, which was driven by a 24% rise in low-cost passengers and a 20% rise in charter passengers.

Cardiff reported strong growth of 39% to 671,900 passengers, largely as result in the expansion of bmibaby’s services, while Skavsta was the best performer, with numbers increasing 250% following Ryanair’s establishment of a base there in April 2003.
TBI’s interim results for the six months ended 30 September will be announced on 25 November 2003

[LGS6753]

Not really surprising.
BY and MON seemed to operate fewer flights this year, and lots of series by foreign charter operators were binned, with some (like Pegasus) starting in July rather than May.
Also, the Air Mediterannee flights stopped when the tour operator went bust around Easter.
Although some of the My Travel flights were taken up by Monarch and others, my guess is that around 30-40% were cancelled.

Hopefully the future's brighter with Now, Volare and more EZY, to say nothing of others.

[LTNman]

The ratio of tour operator charter flights from Gatwick compared to Luton is around 8 to 1. Even early in the season it is impossible to get a Luton flight so what do they do when they can’t fill their Gatwick based aircraft? Easy, they cancel their Luton flights and force passengers to switch airports. Some companies do this year in year out and because of this I like others don’t use them anymore. No wonder the likes of easyjet are doing so well out of LTN.:mad: :mad:

[PAXboy]

The charter and IT (as it used to be called) trade is by no means dead but it has passed it's peak, I suggest. The market has some way further to fall as the loads shift across from charter to LCC with independent travel booking.

The key factor has been, of course, the Web. Even more than the Call Centre, it was this this that gave operators a direct and simpl link to clients across the globe. The LCCs were emerging at much the same time and then it was easy. (Sorry, couldn't resist)

I/they/you/we can book a flight from most any airport and an hotel in Spain/wherever without moving from home.

Younger folk are less likely to book the same resort as the previous year and to do so six/nine months in advance. With the pressure on finances, some people do not know if they will even get a holiday and so decide to do it at the last minute. (OK, I'll stop now)