Is Gulf Air being taken for another ride ?
Join Date: Feb 2002
Location: Somewhere nice and warm
Posts: 402
Likes: 0
Received 0 Likes
on
0 Posts
Yes! Losing BD1M p/a - not the sort of help I think we need right now. Cutting that route alone pays the CEO's salary - good start!
Go take some IATA courses about networking. Maybe then you will understand.
Join Date: Apr 1999
Location: South of North
Posts: 655
Likes: 0
Received 0 Likes
on
0 Posts
From the presentation they made I understand that they will be lightening the sked to allow for approx. 5 aircraft to be offline, in maintenance or available to sub into a route. The idea being to start bring the fleet up to standard and being able to salvage the sked when an aircraft goes tech.
This would go hand in hand with 40 minutes connections etc.
This would go hand in hand with 40 minutes connections etc.
Join Date: Jun 2001
Location: Intentionally Left Blank
Posts: 382
Likes: 0
Received 0 Likes
on
0 Posts
Zzzzzzzzzzzzz
BM - not wanting to get into a slanging match with you over this, but I am well aware of the principles of pro-ration etc and am frankly not in need of any education on the matter.
Let's look at your basic statement:
"If SYD is giving 9M to all other routes (network benefit) it is feeding, then cancelling SYD will not mean u are saving the 10M. In fact, you will save only 1M. This is because while you are saving the 10M in cost, you are also losing the 9M revenue of the network benefit."
In very simple terms this means:
Operating E>F has costs of 10M. That route plus feeders (e.g. A>E B>E C>E etc) brings in 9M in revenue. NET RESULT = LOSS 1M
No question. No argument. Your words admit this same fact.."In fact, you will save only 1M.."
Now given that this may make A>E B>E C>E etc loss incurring routes due to the loss of (incremental/pro-rated whatever you want to call it) revenue by closing E>F is another question. If the answer is YES, that means they were already losing money PRIOR to E>F opening and should perhaps have had their operational & profit feasibility questioned in the first instance! Another wonder of the APM modules or its users! ("a fool with a tool is still a fool" - thank you REVMAN2)
There is no business sense whatsoever in operating a route that costs 10M when it only brings in a TOTAL network revenue benefit of 9M - unless, of course, your objective is to go bankrupt!
Now perhaps you should potter off and do what you do best; making central heating appliances I assume!
Let's look at your basic statement:
"If SYD is giving 9M to all other routes (network benefit) it is feeding, then cancelling SYD will not mean u are saving the 10M. In fact, you will save only 1M. This is because while you are saving the 10M in cost, you are also losing the 9M revenue of the network benefit."
In very simple terms this means:
Operating E>F has costs of 10M. That route plus feeders (e.g. A>E B>E C>E etc) brings in 9M in revenue. NET RESULT = LOSS 1M
No question. No argument. Your words admit this same fact.."In fact, you will save only 1M.."
Now given that this may make A>E B>E C>E etc loss incurring routes due to the loss of (incremental/pro-rated whatever you want to call it) revenue by closing E>F is another question. If the answer is YES, that means they were already losing money PRIOR to E>F opening and should perhaps have had their operational & profit feasibility questioned in the first instance! Another wonder of the APM modules or its users! ("a fool with a tool is still a fool" - thank you REVMAN2)
There is no business sense whatsoever in operating a route that costs 10M when it only brings in a TOTAL network revenue benefit of 9M - unless, of course, your objective is to go bankrupt!
Now perhaps you should potter off and do what you do best; making central heating appliances I assume!
Join Date: Feb 2002
Location: Somewhere nice and warm
Posts: 402
Likes: 0
Received 0 Likes
on
0 Posts
Now perhaps you should potter off and do what you do best; making central heating appliances I assume!
1) I never said that you should operate losing routes. All I am saying is that if you think you are going to save 10M because you quit SYD, you are sadly mistaken.
2) All routes are losing money. Should GF close all stations including DXB? While you are at it, close the whole bloody airline and all the other ones in the region. The fact is very few airlines in the gulf are making any money (QR, EY, etc...). The only difference is that the other airlines have much bigger support by people and governments with deeper pockets.
3) I will bet you anything that MCT-LON is losing tons of money more than SYD. After the bilaterals between India and the UK were updated, you have more and more airlines operating and offering direct services. As a result, the bread-and-butter traffic of GF to the ISC is now almost completely dry. Yet, GF is still operating it.
4) I think you might find that SYD only started to 'lose' big time when the fuel shot up to what it is now (from $0.90/gal to $2.20/gal). When GF started to operate this route, it was probably a very profitable route.
Now why don't you go take that IATA course, you still need that I see.
Join Date: Dec 2005
Location: Fantasy Island
Posts: 91
Likes: 0
Received 0 Likes
on
0 Posts
Chaps hate to say this but you're rambling on about the tree and neglecting the forest. The overall actions the new management is taking is indicative of preparation for other issues. I forcast they have been given a mandate to prepare the airline for partial privatization.
COO Pilots meeting
Join Date: Jun 2001
Location: Surrounded by aluminum, and the great outdoors
Posts: 3,780
Likes: 0
Received 0 Likes
on
0 Posts
In his follow-up letter, the COO has promised to address the concerns raised and provide some further details on proposed amendments at the end of the month..I was under the impression these two meetings were to take the "pulse" of the pilot group...think he found it to be rather hypertensive to say the least..probably didnt help the atmosphere that EY was across the street booking pilot interviews, and actually offering jobs to 200+ cabin crew, and QR were conducting sim evals in our own facility around the same time...
Regarding benefits, and overall package at any airline here, does any carrier here offer a "cafeteria style" package...??
Regarding benefits, and overall package at any airline here, does any carrier here offer a "cafeteria style" package...??
Join Date: May 2007
Location: row 8
Posts: 127
Likes: 0
Received 0 Likes
on
0 Posts
There is some concern at GF about too much reliance on consultants at present.
A classic example is the decisions on route cut-backs, frequency changes and the 01 July schedule. There are many positives in the new schedule, but I'm told that the consultants made their decisions without any discussions with the guys in the field.
Typical of consultants, I suppose.
A classic example is the decisions on route cut-backs, frequency changes and the 01 July schedule. There are many positives in the new schedule, but I'm told that the consultants made their decisions without any discussions with the guys in the field.
Typical of consultants, I suppose.
Join Date: Apr 1999
Location: South of North
Posts: 655
Likes: 0
Received 0 Likes
on
0 Posts
Guys in the field?????? I hope you don't mean the pilots!!!! Losing $1 million US a day leaves few options. You have to cut the routes losing the most money regardless of potential, history etc. With losses like that cash flow is obviously negative and short of continued injections of cash from the country it is unsustainable.
But we are full on some of those routes!!! Ya, but the yield is nil to negative and thats what matters.
Consultants have a place - though I agree their value is limited in some areas.
Either way something had to be done and is being done.
But we are full on some of those routes!!! Ya, but the yield is nil to negative and thats what matters.
Consultants have a place - though I agree their value is limited in some areas.
Either way something had to be done and is being done.
