MK Airlines

[charter man]

I can't believe that a (fairly) large UK airline is grounded, then put into administration, then gets flying again, and NO info on Pprune! Surely someone in deepest darkest Sussex has something to impart??

[SWBKCB]

see this thread:

http://www.pprune.org/forums/showthread.php?t=330486

[AerospaceAce]

Charter Man you sound surprised, its the usual reason, lack of cash. As the aircraft arrived back into Europe they were grounded, No Credit with the fuel company. Panic at board level to get yet another investor with deep pockets. Rumour has it that Saudi money has been injected to buy out the director who put the Airline into administration and pay the fuel company.

MK also have two 747 aircraft parked at Filton without engines - robbed to keep the rest of the fleet going. Not a good sign.

It wont be long before it happens again!!:uhoh:

[Lambrettaman]

I do find it amazing that will all the constraints of flying under a UK AOC and CAA compliance that an airline can effectively stop operating for ten days and then start flying again when numerous creditors haven't been paid a bean ! I understand World Fuels are owed over $1 million dollars and yet haven't had the courtesy of a phone call from either MK or the Administrators as to whether they have any chance of seeing any of it being repaid. New money may have been injected into MK but the dynamics of operating B747-200F's does not change the basic business model which is floored when oil is at nearly $140/Barrel. I wish MK luck but you need to sort out ALL your old creditors to have real credability moving forward. Sequals are rarely as good as the original film. :rolleyes:

[Tediek]

Do they still have their customer base supporting their business model? I heard one of their bigger customers went to LH with the whole lot.

[charter man]

Anyone spot a common theme here? Could it be that operating freighters in the African market is a recipe for bankruptcy? Until someone can convince the main beneficiaries of the African airline operators (the flower growers/food exporters) that they need to pay a fair rate for a fair service, there will continue to be casualties. I suspect that as long as there are people with stars in their eyes and dollars in their pockets, the guys in Nairobi will be happy to squeeze the last drop of Jet A1 out of them....

[GlueBall]

". . . but the dynamics of operating B747-200F's does not change the basic business model which is floored when oil is at nearly $140/Barrel"

Why would a business model be "floored" with the price of oil at $140/bbl...? Do you stop driving your automobile when the price of oil hits . . .$180/bbl? . . . $200/bbl? Do people stop living when the cost of food doubles? Any business model has to be cost based. In the airline industry, when "fuel costs" aren't passed on to the customers in a timely manner, then you run out of cash. It's elementary abacus logic.

The other observation is: Yes, that a 742F guzzles 13% more gas than a 744F. And the 744F in turn will guzzle more gas than the 772F. But the much more expensive 744Fs just aren't available to replace all 742Fs; and the 772Fs are still on the drawing board.

The cost of fuel is relative.

[Lambrettaman]

I agree that newer more fuel efficient freighter aircraft are not readily available but as per your analagy with driving your car, you do not continue to drive the equivalent of 4 litre V8 taxi and expect the punters to pay more just because of your higher fuel costs. What you have to do is redesign your business model in a way that the cost of fuel does not have such a damaging effect on your overall cost structure. One of the main reasons supermarket's such as Tesco's and Sainsbury's post such huge profits year on year (apart from screwing down their suppliers) is to constantly reveiw their costs and improve their economies of scale. Operating a freighter aircraft is all about getting the lowest cost per RTK (Revenue/Tonne/Kilometre) and not just a case of saying to the customer 'sorry mate, fuel has gone up again and you have to pay for it'. The MK business model IS floored all the time they continue to operate B747-200F's................. :rolleyes:

[CargoOne]

Lambrettaman

and not just a case of saying to the customer 'sorry mate, fuel has gone up again and you have to pay for it'

I'm sorry but it is exactly like that. Fuel up? Customers have to pay. Period.

Do you think that Cargolux will go down in week time after 772F will become available on the market purely for a fact that they operating old and inefficient 744F?

[GlueBall]

"The MK business model IS floored all the time they continue to operate B747-200F's................."

Oh, really? The truth is closer to being an MK management deficiency. A "business model" driven by cut throat, greedy slave drivers who not long ago had sent crews on multi stop flights, roundtrip across the Atlantic to save costs on travel and hotels. A "business model" that would work only with an African AOC operating in third world countries, but no longer possible under the "G" register. It's hard to unlearn the old ways of doing business.

[acmi48]

in most cases BGB operate as the 'lift' carrier for panalpina. here the market is rate driven as well. while rates are flat mk costs are rising . if BGB had schedule rights and sold space to forwarders then the 'fuel surcharge' factor can be bought in....

another thought x back in the 80's when noise was an issue CFM and MDC got together on the narrow body issue and quite sucessfully created the 8-70 series- why is no discussion on going for a re engine program for the 200f with wing mods if necess for greater effeiciency

[charter man]

There is a re-engined/improved 747-200F, it is the 747-400F. It is a fact that for the past 20 years, the revenue for export loads from Africa to Europe (amongst other trade routes) has been driven down in real terms by the all-powerful growers and supermarkets. There has to be a reality check soon, otherwise there won't be any independent freighter operators left.

[hydroplane]

Any one knows what company is TAA? Press says its British?



The only one I can find with that name was dissolved in 1987!

:ugh:

Supposedly part of Belfairs (Suisse or British)

the Belfairs website is very obscure:
The Belfairs (http://thebelfairgroup.com/aviation.php)

or very inaccurate and outdated

[plantzzman]

I would like to think those who complain about costs of flying such aircraft when the costs are driven down by supermarkets and growers then go into their local superstore and demand to pay extra for their flowers or fruit and veg thats been grown for them out of season and flown in as cargo but my guess is the reality is they dont. I wouldnt point fingers at African growers its the all powerful supermarkets that drive this game and nobody stops them.
Maybe if all cargo opps shipping such cargo said no thats it no more at that price the supermarkets might sit up and listen- they dont want empty shelves and how else do you ship fresh veg and flowers?

[AAL]

To give an idea, a mixed load of fresh produce (veg and fruit), flowers and fish from NBO/EBB to Europe can achieve something like US$1.75 a kg, depending availability and demand, sometimes falling as low as US$1.45 p/kg.

During high demand season Nov - Jan it can go to US$ 2.40 p/kg.

Same out of JNB to Europe on mainline freighters and underbelly achieves maybe only .85 US Cents.

Then you have mainline carriers like newer entrant in Africa cargo scene like Singapore that hub in UAE and connect from there for even less.

Mainline carriers are prepared to take any cargo just to help pay return-leg fuel: thats where problem lays.

Forget published rates - this is the reality!

Its time for the socondary cargo industry to bite and grit, and to boycot this cargo to force the growers, exporters and retailers in Europe to realise what the cost of air transport is.

Cheap fuel in Benghazi is long gone, and from 1 Jul2008 fuel price in Khartoum is virtualy doubling in price. It has become impossible for secondary operators to continue flying at the prices that the exporters and importers want to pay, anybody so foolish will bite the dust.

After all, its not a crime to make a small profit.

[Coleman Myers]

Given MK are back in action, US$ 1m, probably a weeks fueling, is in the bigger picture is not a great deal if you consider MK has probably been buying fuel from World Fuels for many years. I am sure they will sort it out.

Lambrettaman, maybe you should go work for Baseops as a collector :rolleyes:

[742f]

It is with a huge sigh of relief and much pride that we launched the first of our fleet back into the sky's . I guess you could heap most of the praise on the shear gutted determination shown by our COO Capt Mike Kruger.
Despite the harmful and mostly untrue things written about him over the years, you will rarely find a more driven and motivated individual, who's passion and determination to succeed where others have failed is remarkable. Im sure the easy thing to do would have been to have walk away from the whole thing and lived happily ever after.
What all MK bashers (and I acknowledge that not all of you are), fail to understand is the loyalty to the 420 staff that relied on him to pull this deal off.
I would also add that the past few weeks must have taken an enormous toll on his own personnel health, and like I said he could have walked away.

I for one am very grateful to Mike for his energy and determination to succeed and look forward to a bright future working for MK.:D

[AAL]

742f, Happy days, and hear hear!

Our thoughts and prayers fly with you.

And for all the detractors, Mike Kruger hasnt been around since yesterday, he is a tenacious businessman and will fly through this storm also.

Unfortunately one cannot be everything to everybody all the time, and nice guy's get nowhere.

[sa4200]

Well Done Mike - despite all odds over the years Mk has survived due to strong leadership and committed crews. Anybody who has met up with these guys in various parts of the world will know that they are a great bunch of guys, able to make a plan in some parts of the world where things just dont go according to plan and always ready to lend a hand to other crews. long love mk