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TLA901
10th Jul 2002, 16:44
Virgin Express of Belgium is opening a second European hub at Cologne/Bonn airport and foresees a demand to have up to 20 aircraft in Germany by 2006.

The Brussels based carrier said in May it was considering locations for a second hub in Europe to open in 2003, and today it announced that it is to start operations at Cologne/Bonn in December.

Virgin Express says it has secured landing and take off slots at “a number of key destinations” linked to the new hub for the winter timetable, with plans to further expand this by the summer 2003.

Virgin Express chairman emeritus Richard Branson says: “I am absolutely delighted that the Virgin Express product will be at the front of the wave of change that will shortly sweep over German aviation, bringing affordable fares to air travellers throughout the country. I shall be keeping a close watch on developments and giving my full support to the project. Virgin has revolutionised low fare travel in Belgium and Australia and we look forward very much to the new challenge in Germany.”

A spokesman confirms that the airline will operate to four major European airports from Cologne/Bonn starting in December but will not identify them until after this summer. He says that the carrier would be looking to increase the number of destinations to a total of eight to ten routes by the summer 2003.

Virgin Express plans initially to base three to four aircraft at Cologne/Bonn and the spokesman says that these aircraft will probably be Boeing 737-300s or –400s to complement its existing fleet.

The airline is in discussions with lessors as well as manufacturers over its fleet renewal plans. It is continuing talks about new lease agreements on some of its existing fleet of 14 Boeing 737-300/400s as well as considering options for new aircraft.

The airline has sourced its aircraft from several different lessors to date, although at least five are from General Electric Capital Aviation Services (GECAS) or affiliates.

Virgin Express managing director Neil Burrows told ATI in May that the airline was looking at adding nine new aircraft on top of its existing fleet lease renewals for delivery between 2003-5.

Today the airline’s spokesman would not confirm if the 20 aircraft to serve Germany that it refers to today in its statement would be in addition to its existing fleet or includes new lease agreements.

Virgin Express plans to hire 40-50 new employees initially for operations at the new hub.

It is the third of the low-fare carriers to announce plans to move into Germany. EasyJet of the UK has a purchase option on British Airways subsidiary Deutsche BA, and Ryanair is engaged in a continuing evaluation of German airports with a view to building up a more substantial operation in the country.

Copenhagen
10th Jul 2002, 17:06
Well lets hope that its more successful than Berlin, Shannon and Rome (FCO to MAD, BRU and BCN) hubs in the past.

Personally, I would have thought that they had enough potential from Brussels with the lack of proper competition there, but they obviously cant even cut it in an empty airport.

FlyingIrishman
10th Jul 2002, 22:27
Is Virgin Express planning on competing with Ryanair the way it did at Shannon? Remember how quickly they packed their bags there?

The cost base is far too high and over time, the business model won't be able to sustain itself but for the time being, we'll see if it works.

Everyone wants a slice off the German market but the only ones that will succeed are Ryanair and the easyJet group, they'll split the market between them in the usual way. As far as the other LCA's are concerned, they can be considered insignificant players.

fokker70
11th Jul 2002, 16:43
Flying Irishman - Don't agree. Germany is way behind UK in terms of coverage and the guy (fool) at the top of LH is saying that Germans will not take to the low cost model, he needs to open his eys just a bit wider... V Ex is getting in early enough into the German market to claim CGN as theirs. FR are making a great success of HNN and Easy better make their mind up quickly regarding DBA. I use one of the FR routes to HNN about once a month from BOH and it has been packed each time - there are as many Germans as British on board. Whoever gets their shop in order quickly will succeed and from where I am standing it is only Ryanair and now V Ex. taking advantage of the infancy of the German low cost market...:)

FlyingIrishman
11th Jul 2002, 19:13
Well, after a few million passengers, I'm sure Jurgen Weber (LH's big man) will hold back his comments about Germans not wanting to fly low cost. Of course Germans do simple maths and love what LCA's are doing.

I have to agree with you, now is a good time for each airline to establish their base and it may work at Cologne.

However, what I'm concerned about is that VEX finds it difficult to exist on a low fares basis due to the high operating costs. Furthermore, HHN and CGN aren't too far apart, so people may be inclined to use HHN.

As they say, time will tell...