Ryanair --> Buzz

[Nightrider]

Speculations are over? Apparently the take over is set for 01.04.2003 making Ryanair the biggest STN operator.
BAe146 will be returned to KLM (UK???) and will be replaced by 737...

[Yarpy]

New just broken on the BBC.

http://news.bbc.co.uk/1/hi/business/2712079.stm

Commiserations to Buzz pilots who now belong to the Ryanair fiefdom . . .

To stay or not to stay?

[napoleon1869]

Buzz currently lease all their 146's, presumably these go back, leaving 2 fairly tired 737-300's, about 130 pilots only a few of which are trained on the 737, and a few routes most of which are into France.

All the pilots have a Final Salary Pension Scheme, TUPE requirements will have to be met, Terms and Conditions, Seniority, Training...................what actually are Ryanair getting for their £15m?

I work for KLM in KLC uk formerly KLM uk, formerly Air UK (happy days) and am quietly pleased I never transferred to the yellow fleet.

But then who knows.................

Anyone out there wants to be an airline pilot?
Take my advice and train to be a plumber!

[wobblyprop]

my sympathies to buzz. RIP

[BEagle]

What an utterly appalling piece of news. buzz has a far superior image to the Irish thing; I hope that the emergent airline will maintain its standards and won't be dumbed-down to O'Leary's level.

Will they still fly to Frankfurt - or will they be forced into where-the-hell-is-Hahn? Judging by the Friday night load factors and the number of business folk carried on that route, there'll be some pretty pissd-off teddies if they end up hours away from Frankfurt at an ex-USAF base and then have a long bus ride back into the city.....

So I guess it'll be back to the Lufthansakaesebroetchen and clinical style of LH again. Waddapissa!!

[19F]

If buzz under Ryanair drops seat allocation, they lose me as a regular passenger Paris-London. I'll take the train. The Ryanair hoards jostling at the departure gate are something I'd rather avoid.

[newswatcher]

Do 146s have to go back, can the leases be transferred? Or does Ryanair operate a "no-lease" policy?

For example, where a "type" has been selected as the preferred aircraft for a particular route/load, say Bournemouth to Murcia.

[Celloistic]

Newswatcher

There's no way it makes sense to keep the 146s.

Secondary systems for Parts and engineer/pilot training alone suggest this - then take into account the huge commitment of 100 ordered 73s with options on a further 50 a/c.

No, the 146s won't be around for long.

Hope the corresponding pilots come through this acquisition relatively unscathed - good luck to all involved.

Cello

[wobblyprop]

newswatcher,

The 146 fleet leases are starting to expire. Buzz was in the process of dumping them anyway.

Since either JAA or just a change in the pax weight used in Mass and Balance calcs. they have become even more expenise to run. Sometimes catering has been left off to allow pax + fuel.

BEagle,

I like the buzz brand too. I liked Go's branding and unfortunately that's now orange. :(

[Cyrano]

This is from the Ryanair website this morning. The 146s are to go back. Read on...


News Release



January 31, 2003

Ryanair reaches agreement with KLM to buy BUZZ

Ryanair Holdings plc, the No.1 low fares airline in Europe today announced that it had reached agreement with KLM to take over Buzz for a total payment of €23.9m (less than £15m) which it will fund from its own substantial cash reserves without any recourse to the markets. Highlights of this transaction include;

Ryanair will buy the entire issued share capital of Buzz for a total of €23.9m (£14.95m). Since Buzz will have €19m (£11m) of cash on completion the net cost of this purchase is less than €5m.

The acquisition will be funded from Ryanair’s existing cash deposits which presently exceed €1.05 billion, so the cost is nominal to Ryanair.

In the year to 31 March 2003 Buzz will fly just under 2m passengers, generating revenues of €140m, with a forecast double digit PBT loss.

Buzz currently operates a network of 21 routes from London Stansted to points in Germany, Holland, France and Spain, as well as two French domestic routes.

The company will operate a fleet in Summer 2003 of 6 x BAe 146 aircraft and 6 x Boeing 737-300’s.

As part of the transaction KLM have agreed to take back all of the remaining BAe146 aircraft at the end of the financial year (31/3/04). We currently plan that these will be replaced by more efficient Boeing 737’s.

The management believe that by applying Ryanair’s low fares/low cost formula, the traffic in Buzz can be increased this year from under 2m to over 4m passengers and the operating losses will be eliminated and profitability achieved.

The acquisition is expected by the Directors of Ryanair to make a positive contribution to Ryanair’s earnings per share in the coming financial year (end 30 March 2004).

This acquisition, which has been approved by the Boards of KLM and Ryanair, is expected to be completed, subject to regulatory approval on 1 April next.

Michael O’Leary, Chief Executive of Ryanair said: “The timing of this acquisition is opportunistic. Since Ryanair is growing strongly by rolling out our lowest fare services all over Europe, the last thing we need is the distraction of an acquisition. However there are a number of features of Buzz which makes this a favourable move at this time including:

- Buzz operates 21 routes from London Stansted which is Ryanair’s main UK base, thereby making it’s turnaround easy to manage.
- The acquisition of Buzz allows Ryanair to further expand at Stansted, London’s third main airport, and is a timely strategic move.
- The cost of the Buzz acquisition is nominal at a net cash cost of under €5m, which will be a bargain if we can- as we expect - turn it around in one year.
- Buzz’s operation suffers from two structural cost problems, (1) an inappropriate expensive fleet and (2) expensive congested airports. Ryanair can and will resolve both problems within 12 months.
- Ryanair will significantly rationalise Buzz’s operations by closing a number of high cost unprofitable routes and operating the remaining routes at increased frequency, lower fares and much lower costs.
- Buzz’s BAe-146 fleet will be redelivered without cost to KLM within the year, to be replaced by significantly more efficient Boeing 737’s.

“I am confident that this significant and timely rationalisation will eliminate these losses in Buzz over the coming year. With a change of aircraft fleet Buzz will be in a position to match Ryanair’s low fare, profitable growth from 2004 onwards.

“Customers of Buzz can look forward to new routes, increased frequency, larger aircraft and significantly lower air fares from 1 April onwards. We will be announcing details of this reorganisation including new routes, frequencies, lower fares and timetables before the end of February as we implement our plan to transform Buzz into a growing, profitable operation.

“Since the Buzz acquisition will not take place until 1 April at the earliest, the current Buzz losses will have no impact on Ryanair’s full year earnings forecasts. Whilst it has been our policy to avoid acquisitions, this opportunity, at this nominal cost is the type of offer which we could not refuse. The financial cost is small and the diversion of management time will be minimal since Buzz is based at our main UK base. We have a simple and effective plan to turn it around by delivering lower fares, rapid traffic growth and Ryanair type profitability once the BAe146 fleet has been returned to KLM. I am confident that Buzz will thereafter make a proportionate and significant contribution to Ryanair Holdings’ revenues and profitability.

As Ryanair is due to report Q.3 results on Tuesday morning (4 Feb’03) we are currently in a closed period, and will not be making any further comment on this matter until then. A full analysts briefing and subsequent press conference are scheduled for Tuesday morning in London for this purpose.

[ramsrc]

I am gutted...

I (and many others) have said on these forums over the past couple of years that the future's yellow.

Seems this is no longer the case.

Terrible news :(

[dwlpl]

BEagle


The answer as to which airport(s) they will use is in the Ryanair press release;

"Buzz’s operation suffers from two structural cost problems, (1) an inappropriate expensive fleet and (2) expensive congested airports"

[mrshubigbus]

Now that the "end of Buzz" has been announced let us not forget that the final remnants of a very significant name in the UK airline industry will now finally disappear at Stansted. Air UK got Stansted on the road to success during the early 1990s only to be "taken apart" over the last few years through events beyond the control of its loyal staff.
Thanks for the HAPPY memories!

[Best Western]

Ryanairs recent route announcements yesterday make much more sense now:

Bye Bye Dusseldorf, hello NIEDERRHEIN
Bye Bye Amsterdam, hello MAASTRICHT
Bye Bye Toulouse, hello PAU
Bye Bye Paris, hello REIMS
Bye Bye Frankfurt, hello HAHN
Bye Bye Murcia, hello HAUGESUND (Alicante North)

[PaxmanwithInfo]

BRAVO.

What terrific news. Well done Ryanair - you have mountains to climb and you continue climbing - what a dahling of the market.

Short shrift to the begrudgers I say - you know what they say about Michael O'Leary - "He wouldn't take a bite out a stone wall"


"But he'd easily sink his teeth into your arse!!!"

Watch out.

Who is next???

[AerSligo]

What sad sad news...

[RAT 5]

I see that the 146's will cease at the end of March. That's 2 months away. They will be replaced by B737's. I wonder when? If Ryanair are planning to convert the crew that will take a good long while, and unlikely to be half finished before the summer schedule.

Ideas? Answers on a postcard to Prune.

Why ditch AMS? Maastricht is no-way an alternative. EJ only fly to UK, except for NCE & BCN. Basiqair (Transavia) have a free reign to the Med'. The Dutch are clamouring for some real low fares to the south.

AMS might be expensive, but the pax are there. Adjust the fares accordingly and any LCA must be cheaper than the conventional opposition.

Is the STN-AMS not profitable for Buzz. EJ ex LTN seem to make it work.

[sky9]

Would the deal have more to do with airport slots than anything else? I cannot se any other reason for an airline to buy another one then return the aircraft to the leasors.

[AJ]

Brilliant news. Buzz never had any viable strategy anyway! More low fares on the way!!

[ramsrc]

AJ

Au contraire, Buzz have a very viable strategy.

First of all they fly where I (and hundreds of others) want to go and don't deposit me on the runway at breakneck speed over 100km from where I want to be. Secondly their staff are friendly towards their "carbon based load statistics" and thirdly they are reasonably priced into the bargain.

[Taildragger67]

No comment, just relaying the latest news:

Boeing Wins Ryanair Order for Up to 100 Planes Worth $6 Bln

Dublin, Jan. 31 (Bloomberg) -- Boeing Co., the world's
largest planemaker, won an order from Ryanair Holdings Plc for as
many as 100 jetliners worth $6 billion, giving Boeing a boost to
overcome a drop in demand.
Ryanair, which announced today that it will buy KLM Royal
Dutch Airlines NV's no-frills unit, Buzz, will end up with a fleet
of 250 of Boeing's 737-800 planes, it said in a Regulatory News
Service statement. Last January Ryanair ordered 100 single-aisle
737-800 airplanes with options for 50 more.
The order helps boost production for two years that analysts
expect to be the most difficult for the airline industry every.
Boeing's production fell 27 percent to 381 planes last year from
527 in 2001. Production at the Chicago-based planemaker will drop
a similar percentage to as few as 275 planes this year.
For Ryanair, the additional planes will help it enlarge its
network of routes and base airports, especially at Stansted
airport in London. It will be able to use Boeing 737s to replace
less-efficient BAE 146 planes now in Buzz's fleet. Ryanair has
said it will return the BAE 146 planes to KLM within a year, to be
replaced by 737s.

[timzsta]

Sad news, especially when you find out from BBC breakfast that you need to get your uniform changed to the blue one. Buzz's strategy would have worked, getting rid of the 146 fleet as they planned would have meant more seats at lower fares as the 737 is so much more economical.

And the punters like to go to the destination as advertised, not 70km away. But no doubt KLM jumped at the chance of £15m to swell the coffers, and Ryanair realising buzz was going to be upping the low cost fare war, jumped at the opportunity to effectively kill of its rival and at £15m its pocket money to Micheal O'Leary.

I myself will not be doing manual check in. Time to see if I can change my Yellow uniform for an Orange one.

RIP Buzz

[Mr @ Spotty M]

RAT 5
The 146s finish at the end of March 2004.
See previous posting (page 1), Ryanair statement.

[360BakTrak]

Anybody know if this will affect Buzz moving to Bournemouth? Will Ryanair continue with the proposed routes out of EGHH?

[thedude]

Napoleon,

I hate to be a harbinger of doom, but if you get to keep your final salary pension, t&c's etc. I'll eat my jockey shorts! :cool:

The only legislation that will apply is the O'leary law.

[dontdoit]

Napoleon <<All the pilots have a Final Salary Pension Scheme, TUPE requirements will have to be met, Terms and Conditions, Seniority>>:

You'll be working for a non-UK company (Irish) so none of the TUPE conditions will apply - neither will Final Salary obligations or agreements for Present T & C's....Good Luck, I think you're going to need it!

[Dewdrop]

Buzz lost 30 million last year and is projected to lose 30 million this ! Great strategy. No wonder KLM got shot.

[unwiseowl]

So the 146 pilots will be made to sign a bond for the 737 conversion?

[Best Western]

It seems that the Ryanair deal does not include some airport slots.

Reuters state "KLM said the value of the deal to the Dutch group was about 30 million euros -- higher than the 23.9 million euros paid by Ryanair -- because it would also receive valuable airport slots and other items from Ryanair following the sale."

No doubt Ryanair now have a no compete clause at Amsterdam. They probably handed back the slots at FRA, DUS and CDG.

[Waggon rut]

The MOL prediction will come true.
There will be only two left.
FR and the orange one, and FR will put the pressure on every now and then just to show who is in charge of Europe. But who know's orange seems to be losing the plot anyway, so maybe only one will be left, and of coarse Titan picking up the sub charter work in the background.;)

[PaxmanwithInfo]

What sad, sad begrudgers...

Boo Hoo...

[Knobbies]

I was with Air Anglia then Air UK and remember the good 'ole days!

That was indeed when Aviation was fun and I was never more proud to be an airline pilot.

Best wishes to all those at Buzz.

RIP

[AJ]

First of all they fly where I (and hundreds of others) want to go and don't deposit me on the runway at breakneck speed over 100km from where I want to be. Secondly their staff are friendly towards their "carbon based load statistics" and thirdly they are reasonably priced into the bargain

Fourthly, and perhaps most importantly from the point of view of the sustainability of their business model - they failed to make any money.

If Ryanair are supposedly such a bad outfit, why do 1) Passengers continue to return to flying with Ryanair 2) Pilots continue to attempt joining the company 3) Ryanair staff not complain about the allegedly terrible working practises and their supposedly tyrranical boss, O'Leary ??

The tendency to make irrational and ignorant comments on Ryanair threads never ceases here on pprune. That's a real shame.

[noblues]

Seems KLM wanted shot of it, very sad news for what was once Air UK and a thriving european airline well before the low cost thing started, comparable to Midland - Then came the KLM thing and it all went tits up ....

Its ironic that the cloggs have dumped the whole thing after having chewed up Air UK and spat it back out .....

It puts the stoppers on the KLMuk pilots who had bid to transfer back to a life in the UK with Buzz, under the recent BALPA agreement - KLM must have known about the Ryanair talks whilst this was going on - probably this is an easy way out for them.

What off the Buzz/Transavia tie up, and KLM expanding low cost from Schipol etc ...

My biggest concern is for the Buzz pilots who will no doubt looses their final salary pensions ...... what a mess.

Only good thing is that most Buzz FO's who are relatively high houred will all get 737 commands within 6 months .... but will have to sign a bond if they were 146 with Buzz.

I left Air UK/Buzz/KLMuk 2.5 years ago, had regrets for a long time after .... now just glad to see all this happening from a distance !

[Andy_R]

AJ does seem to have a point that there are constant gripes on PPRuNe about Easy but very few about Ryan Air.

Maybe it wont work out as badly as some seem to think.... but then what do I know, just my opinion.

[Metal Mickey]

AJ

With Ryanair you work hard but it's 5 On/3 off - finish early - start late - pay is good - very good.

With Easy it's 6 On/3 Off but the 3 can turn into a 2 - that means 7 On/2 Off. The finish on an early, start on a late option doesn't exist.

BALPA's negotiations(??) haven't done a thing to bring this major difference in working conditions into line with what the Ryans offer.

You want time off with the family - Ryans.

You want an early grave - Easy.

[MerseyView]

I think it matters not if O'Leary rips up the agreement to let KLCuk pilots transfer across because I doubt any of us would now want to go!

[Herod]

Thanks for the condolences, but the "corpse" isn't dead yet. Read the Ryan press release, there is no mention of killing off the buzz brand. On the contrary, they plan to turn buzz round within a year, whence it will make a contribution to the Ryanair group. Could be that the future (for the time being) is still yellow. It will just be with an Irish accent, which may prove to be better than "isht not poshible".

[Norfolk and Chance]

Just what is happening to our industry, first Go now Buzz who next, sorry there is no more! Now its time for a straight head to head fight between the big two and just who will survive at STN, only time will tell. It is sad to see what was effectively Air Uk disappear today, my thoughts are with my old comrades there I hope Mr O'Leary has a soft spot for you all!

AirUK RIP

[Lee-a-Roady Moor]

I doubt MOL has a soft spot for anybody - perhaps not even himself;)

Maybe BUZZ didn't really cost him that much at all - the taxes and charges retained from 'no show pax' allegedly equates to approximately the same sort of money that was paid for BUZZ :yuk: :yuk::yuk:

[driver1]

HEROD, god i aidmire your positive attitude, it was always a pleasure to fly with you mate!!!

I feel so sad today, I loved AirUk, a great team spirit and such fun, I have fallen on the side of the Dutch and I cannot see which is the more evil, them or Ryanair. I dreamed of joining you back at BUZZ to enjoy that team spirit again, alas its not to be ...
I hope that it all works out for you guys and that MOL appreciates just how good BUZZ is, you never know perhaps Ryanair could be modeled on BUZZ????? but hey I am dreaming again.


My best wishes to you all, lets not forget 31st Jan as the final day of AirUk, and organise many a p1ss up to remember the good times.


:D :D :D

[Lavdumperer]

While I really preferred the yellow paint scheme - very refreshing in a dull, gloomy English sky, I believe the Buzz pilots are a lot better off... Now they will fly advanced 737-800s instead of junky BAe-146s or tired 733s. Now they will be joining a market leader - instead of an unsteady ship like Buzz - job security will be boosted big time!!!!!

Yeah, they will have to put up with Ryanair's crap management, but job security and aircraft flown will improve big time!

Great news for Buzz pilots out there!


Cheers

[Ringo]

I suspect that Ryanairs only interest in buzz is the peak time slots we hold. I really hope I'm wrong.

We're having a meeting with MOL Monday morning @ STN so maybe we'll learn more?

The buzz pilots and cabin crew are a fantastic bunch who have been lied to and shat on for ever since the cloggies took over, so we're experts at crap management.

You never know it might just be alright.................

[Nightstop]

Good luck guys, especially you Herod ;) . If you fancy a change of colour send me a PM :cool: .

[stevobeevo]

Reported on local ceefax today that Ryanair have yet to decide on opening Bournemouth as a 2nd UK base for Buzz. Will find out at the press conference on tuesday 4th Feb!

Newswatcher: Re the 146s. Bournemouth-Murcia are filling B733 up quickly, as is Malaga and Bergerac. Belfast, however may not last the takeover as Ryr stated in the press release that they will axe under performing routes.

Bournemouth Airport awaits Tuesday with baited breath.

Fingers Crossed:confused:

[Wet Power]

Easyjet buys GO (approx 24 aircraft at the time)

Cost = approx £400 million


Ryanair buys BUZZ (approx 12 aircraft at the time of buyout)

Cost = £15 million (including £11 million in the bank)


Who do you think has got the better buy??

If you are an employee of KLM reading this thread you should hang your head in shame.

Whatever MOL's faults you have got to admire his astuteness.

[MarkD]

Are those 733s any more knackered than the 21 FR 732s on the go? Don't think any of those have gone to the boneyard yet - open to correction!

[eurostar builder]

Hoping Bournemouth has not wasted 1 million pounds on
their Portacabin city for nothing.

[4321zip]

Being just a passenger, I have always found the service on buzz and Go a lot better than that of EasyJet and Ryanair (though I have no complaints of the latter two).

I believe it is because buzz and Go were set up by very good, well-respected brands (KLM/Air UK and British Airways) and the service has obviously rubbed off!

But, with the number of start-ups the industry is seeing, I think that consolidation over the next 2 years will be important. I always thought one of the survivors would be buzz, but who knew what was round the corner?

Can anyone explain what will happen to the 6 Boeing 737-300s buzz is recieving from Continental and what will happen to buzz's existing 3 Boeing 737-300s?

Rumour has it that bmibaby could be up for sale, or adding bases along the lines of bmi's owners SAS and Lufthansa.

[Luke Wingwalker]

Did this come out of the blue for everyone else? Hadn't Buzz just announced a sponsorship throuigh Cabair? Seems a bit strange as presumably they've been in talks with Ryanair for some time?
Also i'm a bit confused as to whats actually going to happen to Buzz. Is it going to be metamorphasised into Ryanair or is it still going to operate as Buzz, but owned by the O'Irish instead of the Dutch.
Whats going to happen to the pilots, cabin crew etc?
Answers on a post card.....

[4Prop]

Not good for anyone finding out on the TV news that Buzz was sold Including the 60plus engineers working for KLM UK Engineering who at stansted only look after the Buzz Fleet!! Sold down the river in secret by KLM mainline.:confused: :(

[timzsta]

So much for Buzz being KLM's low cost airline for the future, new aircraft, new bases, new routes etc. But as Darren Gough said in his autobiography "the darkest hour is the hour before dawn".

Still waiting to find out if Buzz we be merged into Ryanair, or continue as it is own brand, but owned by Ryanair. If it is the former, manual check every day is not that appealing.

[surely not]

What a great shame for everyone involved and that means the whole of Buzz not just the well remunerated pilots.

Ops, crewing, and all the others involved in the back up services to the flight crew will find it even more difficult job wise as RYR already has positions covering their jobs.

The Handling agent issue needs to be addressed as well as RYR use Groundstar and Buzz use aviance. More jobs on the line I guess, but hey so long as you drivers get your licences updated to a better type and keep your salaries who cares.

[Captain Max]

What a shame to see such a well established and professionally crewed airline be replaced by this. Buzz, having the parentage of a proper airline at least knew how to do things the right way. Even offered excellent cafetiere of coffee for £1.50 whereas Ryans charged me a fortune for a small can of coke and then 'hadn't any change'. I was always treated properly by Buzz but the other lot always treated their pax with contempt. Such a shame, I hope the crews get treated fairly, or even find a post elsewhere.

[OneWorld22]

Captain Max, why don't you actually bother to read posts from actual Ryanair pilots about their conditions and not just make rash judgements without knowing the facts??

Very good pay, excellent training, rosters known weeks in advance and your days off set in stone. Work hard, get paid well, I guess that's unusual for some pilots!

I don't care what anyone says, if Ryanair were a British owned and British managed company we wouldn't get a tenth of the whinging that goes on about Ryanair. You don't like flying Ryanar as PAX? Fly with someone else and pay more, it's your choice! Ryanair does exactly what it says on the tin.

Good to see that good old fashioned English begrudgery is still alive and well on PPRuNe.

[Brookmans Park]

Does this takeover mean that we will now see the
"yellow daisies" being taxied around STN
at 25 knots rather than 5??

[Tom the Tenor]

Absolutely, OneWorld22, the usual jealousy.

[Holer Moler]

Have heard that Ryanair will go for the BOH option and then advertise as a London / Plymouth destination. Can't honestly see them using HH as a 2nd uk base, catchment area does not warrant it.

[A and C]

It would seem that this is history repeating itself !.

Debonair could not make the BAe 146 work in the low cost sector and neather can Buzz it is just the wrong aircraft for the job.

I just hope that the employees of Buzz have a better time with Ryanair than the Debonair people had on the dole.

[Herod]

BoxcarWilhomena, those "knackered 737s" (that I happen to take a pride in) are turning in 98% despatch reliability. 4321zip, as far as is known, the six will arrive (two are already on line), after that, who knows. Nightstop, why not come back to us? With your Midas Touch (or should it be Golden B*lls), we could all be in for a windfall. Remember, until you hear otherwise, the future is still yellow.

[Nightstop]

Gee thanks Herod but I'll stay where I am (for now), even my luck can run out you know :D . BoxcarWilhomena ex Air Anglia eh ? A dying breed of top class aviators, don't you just miss those NWI-SVG flights counting the Consol dots/dashes and the noise of those Darts!
Looking forward to hearing the news from the 10:00 briefing with MO'L, keep us posted folks.

[Flap40]

Briefly:-

Buzz name goes but AOC stays. (ie UK company)

BALPA recognition stays

CDG, FRA & BOH base all dropped.

Extra rotations on others.

No guarantees on jobs.

[rumflier]

Word has it all the new buzz routes due to start from Bmth next month are being ditched as part of the takeover.
Anyone heard anymore?

[Powerjet1]

Would seem so as you can't book anything ex BOH on the Buzz website now.

[Nightstop]

Hmmm, UK AOC stays but for how long? Will the existing buzz AOC postholders remain in place, or be replaced?
CDG & FRA dropped, no surprises there but I thought BOH stood a good chance of surviving :confused: .
Any mention of pensions?

[rumflier]

thanks. guess we'll see what happens at this press conference tomorrow. Have just rung buzz helpline and they say all BOH flights temporarily suspended

[stevobeevo]

Such a pity for BOH. Plus with over 70,000 ticket sales already (nearly 20% of available seats) still with 9 weeks left to book.
Malaga, Murcia and Bergerac were filling up fast and already with some flights full. Might leave the door open for another carrier to move in after seeing the potential and obvious appetite for low cost from the area.

With around 4 million people living within a 1 and a half hours drive. Boh makes a good mini base, as FR already know from their 3 routes.

Maybe next time BOH. :(

[Herod]

Yes, BOH base will not happen, the aircraft are required for new routes out of STN. Several routes to go, including FRA and CDG, with increased frequency on others. 146's to be replaced by 737, but which mark still not finalised. Company remains seperate from Ryan, with its own AOC. All existing Ts and Cs to remain for the time being, but approx 100 redundancies expected, primarily office and support staff. More will be known by the end of the month.

[rumflier]

looks like ryanair aren't suffering, but what now for buzz..... news this morning:


PROFITS UP 50% AS RYANAIR HITS NEW HEIGHTS

Budget airline Ryanair soared to record-breaking heights in the third quarter of last year, figures from the no-frills company showed today.
During the period to the end of December, the Irish-owned carrier recorded its highest passenger traffic totals and profit growth.
Passenger numbers went up by 46% throughout the three months, to 3.9 million, following an 8% cut in fares, including a million free seats promotional offer in October. Revenues increased by 37%, while operating costs dipped by 28%.
The airline said today: "As a result, Ryanair's revenues after tax margins, during the worst quarter in the year, increased from 21% to 23%, and net profit increased by 50% to £28.5 million (43.2 million euros).
Today's figures capped a spectacular few days for Ryanair.
At the end of last week, it made its first rival airline acquisition, buying low-fare Buzz from the Dutch carrier KLM for £15 million (23 million euros) and soon afterwards confirmed the purchase of 100 Boeing 737-800 jets at a book value of £3.6 billion (5.5 billion euros).
Chief executive Michael O'Leary said of today's returns: "These are another good set of numbers which result from the disciplined way we are rolling out our low fares all over Europe.
"They again highlight the difference between Ryanair and other so-called `low fare' carriers in Europe. We continue to earn increasing profits even during the winter period when others have confirmed that they will suffer losses.
"Ryanair's reducing cost base enables us to continue to drive down air fares. Lower fares mean higher load factors on our new larger aircraft, whose lower operating costs in turn result in increased profits.
"This is a virtuous cycle of lower costs, lower fares, faster growth and increasing profits.
"No other airline in Europe can match Ryanair's low fares and the gap between Ryanair's prices and the rest continues to widen. ''
Mr O'Leary added: "We continue to be surrounded by opportunities. The average load factor on our four new routes from Frankfurt Hahn in December was over 80%.
"Advance bookings at our new Milan Bergamo base, which starts on February 6, suggest that load factors for the first month will be in the very high 70s if not 80% as well, and the initial customer response to our ninth European base at Stockholm Skavsta, which we announced last Tuesday, has been very encouraging.
"Based on our estimates for the final quarter, we are now raising our guidance for the full year to £155 million (235 million euros) net profit after tax.''
Mr O'Leary also said Ryanair was continuing to limit any risks associated with its capacity growth by spreading it across the network, launching new bases, new routes from existing bases, and increasing frequency on existing routes.
"All of this growth justifies our 100 new aircraft order which was announced last Friday.
"With worldwide aircraft orders now significantly down, there has never been a better time to buy new aircraft.
"We are proud to extend our partnership with Boeing, the maker of the world's most popular and best commercial aircraft, the Boeing 737.
"By ordering a total of 125 firm and 125 option aircraft, we can begin the replacement of the 737-200 series, and maintain further organic growth across Europe as we transform Ryanair into the airline with the youngest fleet in Europe, in addition to being the most punctual, which we already are, and the lowest cost, which we already are.''
He added: "The purchase of Buzz for the insignificant net cash sum of under £3.3 million (5 million euros), which was also announced last week, was an opportunity too good to miss.
"We will be eliminating a number of Buzz's loss-making routes in order to allocate some of the aircraft to increase frequency on existing Buzz routes from London Stansted.
"The combination of Ryanair's low fares and more efficient airports, as well as the conversion of Buzz into an all-737 operator over the next 12 months, will result in the Buzz operation becoming profitable for the first time as we double its traffic from under two million.
"We are aware that some commentators fear that we are biting off more than we can chew. We are conscious of this but one cannot always control the timing of opportunities that present themselves.
"However, the purchase price made this deal, in our view, a very attractive proposition. Fortune favours the brave.
"With the addition of the Buzz traffic, and Ryanair's own organic growth, we expect to carry up to 24 million passengers in the coming fiscal year, a figure that would see Ryanair challenge Air France for the position of Europe's third largest international scheduled airline.
"We have the low fares formula, the people and the unrelenting determination to achieve these targets, by delivering disciplined, profitable, low fares growth to millions and millions of European consumers.''

[Small Pilot]

Reuters story....

LONDON, Feb 4 (Reuters) - Fast-expanding Irish no-frills airline Ryanair Holdings Plc <RYA.I> <RYA.L> said on Tuesday it would close down its newly acquired rival Buzz if staff there did not agree to adopt its low-cost airline labour practices.
Chief Executive Michael O'Leary told an analysts' briefing that up to 100 jobs could go at Buzz, and that he expected the rest of the operator's work force would agree to Ryanair's way of working.
"What happens if it blows up in our face? We will close it down, but we will still have the slots," O'Leary said.

((Reporting by Daniel Morrissey, Reuters Messaging: [email protected]; email: [email protected]; phone +44 20 7542 2769))




Tuesday, 4 February 2003 11:03:31
RTRS

[eurostar builder]

From Local papers

AROUND 55,000 holiday-makers could be left in the lurch today amid fears that planned Buzz flights from Bourne-mouth could be scrapped by new owner Ryanair.

Confusion reigned as yesterday as as customers trying to book flights to Amsterdam, Bergerac, Malaga and other destinations were told all Bournemouth Buzz sales had been "temporarily suspended" - and people who have already bought tickets would have to "wait and see" if the services will still go ahead.

The cheap flights, due to start at the end of next month, were expected to bring 200 new jobs and form a key part of the airport's much-heralded 2003 expansion plans, but even airport managing director, Glyn Jones, has been left in the dark.

And, if the worst fears are realised at a Ryanair press conference, in London this morning, he is urging every single ticket-holder to fight for their right to fly.

"The fact that 55,000 people have already booked seats demonstrates the huge demand there is. People in this part of the UK have waited a long time for a significant low-cost operator," he said.

"We would all like Ryanair to continue that, and I would encourage every ticket-holder to make their feelings known."

Ryanair remained tight-lipped on its future plans ahead of today's meeting, but it has already warned it will "rationalise" Buzz by shutting down high-cost, unprofitable routes.

Just two weeks ago, Bournemouth International Airport opened a brand new departure lounge, specifically designed and built to handle the 750,000 annual increase in passengers which the new routes - due to begin at the end of next month - were expected to bring.

But the shock announcement of Ryanair's £16 million takeover of Buzz at the weekend sparked fears that some of the more pricey services to Paris, Murcia and Malaga could be axed - and worried passengers have been unable to get a straight answer in the days since.

Claire Freeman, of Kinson, and friends have booked 12 return tickets to the Spanish sunshine resort of Malaga at the end of May, and they are becoming increasingly concerned about the fate of their holiday plans.

"We just don't know what is going on - every time we have rung Buzz or Ryanair we just get fobbed off, and told to call back later in the month," she said.

A Buzz spokesman told the Echo to contact Ryanair, which declined to comment ahead of today's meeting.

For full details on this and other stories, why not

[A Very Civil Pilot]

Buzz AOC will remain as it allows for expansion to non EU countries from STN, where Ryanair as an Irish based operator cannot fly from UK to a non EU country.

[AerSligo]

From the Buzz website...

buzz network changes - Bournemouth routes cancelled

Further to KLM’s announcement on Friday regarding the sale of buzz to Ryanair,
an immediate decision has been made to cancel the buzz contract with Bournemouth Airport.
As a result of this, all flights from Bournemouth, which were due to launch on 30 March 2003,
have been taken off sale.

Flyers already booked to travel on these services will be contacted shortly by Ryanair.


That'll be fingers up to all those who have booked onto the planned flights then...

[brabazon]

You do have to question KLM's negotiating skills on this. I know they are strapped for cash - as they need to pay Alitalia over the split of their alliance - but the more you hear O'Leary bleating on about this the more you realise what a small price he had to pay for the slots at STN and the AOC.

[Groundloop]

Now that Ryanair have cancelled all the new Buzz routes from BOH let's hope that Palmair step in to fill the gap. After all Bath Travel, who now own European who provide the Palmair aircraft, were the local sales agent for Buzz so have an excellent picture of the current marketplace out of BOH. And Palmair were going to start a low-cost airline out of BOH until Buzz came along - and now Buzz has gone.

[rumflier]

They'd be daft if they didn't. with a 55,000 take up the demand is there.

[mcdonnellluke]

Hello
Is says on the Buzz website the agreement between BOH and Buzz has been cancelled-if this is the case can Bournmouth Interational Airport sue Ryanair/Buzz for this?-this could get compensation for money spent on expanding the terminal facilities and check-in facilities for the arrival of Buzz-if they can take legal action I certainly think they should.
Luke

[eurostar builder]

From Buzz Website...




04 February 2003

buzz network changes - Bournemouth routes cancelled

Further to KLM’s announcement on Friday regarding the sale of buzz to Ryanair,
an immediate decision has been made to cancel the buzz contract with Bournemouth Airport.
As a result of this, all flights from Bournemouth, which were due to launch on 30 March 2003,
have been taken off sale.

Flyers will be up-dated on 28th February regarding refunds and rebooking information.

-------------------------------------------------------------------------------------------------------------------
Why do we have to wait until 28 February ,sitting around stewing waiting until see if we are going on holiday.

Im going to check flights with EASY JET before the other 55,000
passengers from bournemouth do...

Palmair/Bath Travel please step in, the door is open.

[Aviation Trainer too]

KLM strapped for cash??? Not really they have over 1 billion available.. That is why AF / BA etc want to talk to them...

They wanted to keep a cash pile and a €30 million a year losing operation does not fit in that picture

[stevobeevo]

BOH wont sue Ryanair because FR will put around 300,000 PAX through BOH in 2003 accounting for around 55% of PAX numbers. They certainly dont want to tick them off.

Eurostar, I wont be travelling Easy from Gatwick as the coach takes three + hours including a change at Heathrow. Not worth the effort.

So much for low fares at SOU. Flybe to Amsterdam is £142 for the dates I booked for BUZZ and they use a Dash8.

Still with all the publicity that this has got it must be making other LC look at opening up at BOH. BBC reported that 95,000 tickets had been sold. That was 30% of bookable seats, not bad eh!

[rumflier]

one small piece of good news for BOH in all of this with Ryanair launching its Glasgow Prestwick route tomorrow.

[stevobeevo]

Hardly Paris, is it?:bored:

[OLNEY 1 BRAVO]

I'm told that if you ring Buzz on 0870 240 7070 and provide your booking confirmation number, they will issue an immediate refund!

[eurostar builder]

Re
one small piece of good news for BOH in all of this with Ryanair launching its Glasgow Prestwick route tomorrow.
.............
But who wants to goto Prestwick at 18.00 at night or
who wants to Arrive at Hahn at 23.00.

Not good either of these times

:confused:

[Wet Power]

If Bournemouth passengers are looking to rebook their flights to the sun they should consider the excellent and competitively priced new services being started out of Gatwick by Monarch Scheduled at the beginning of May to Alicante, Malaga and Faro.

[Jobs-a-Goodun]

Stevobeevo,

Flybe's AMS service is operated in codeshare and is actually a ScotAirways Dornier 328. The CDG flights are AF/BritAir CRJ's and as such the truly low cost fares are not available as it is not a Flybe flight.

You will find that Flybe's own routes from SOU to Guernsey, Jersey, Belfast, Dublin, Milan and Geneva all start at £58 rtn.

Flybe have also indicated that they may start additional flights from SOU to some of the BUZZ destinations, likely to be southern Spain....remember BUZZ flights to Malaga/Murcia started at £98 rtn!!!....expect Flybe to be very similar, if not cheaper if these additional flights get the go-ahead.

[BOAC]

Hoping Danny and the team will allow this to stay until it has enough airing??

Info here (http://www.pprune.org/forums/showthread.php?s=&postid=766712#post766712)

[stevobeevo]

I simple emailed buzz customer services via the buzz website and they re credited my visa straight away. You dont get that service with Ryanair! They dont even have an email option.:eek:

[timzsta]

And just what aircraft do you expect Flybe to use to operate SOU to Murcia or Malaga. It wont be a Dash 8, the CRJ's are being binned and trust me, a 146 will not make to Murcia or Malaga with a full load of punters - its a simple matter of Operating Mass + Traffic Load will exceed Max Take off weight!

[Bern Oulli]

From the local tv last night and the newspaper today a lot of angry ex-Buzz pax will make a lot of trouble for Ryanair. One of the pax is a solicitor who is definitely not happy. Link to Bournemouth Echo (http://www.thisisbournemouth.co.uk/dorset/bournemouth/news/BOURN_NEWS_NEWS0.html)