DAT's Future Still Cloudy
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DAT's Future Still Cloudy
From todays's ATWOnline
Dateline: Tuesday December 04, 2001
Sabena Technics' and DAT's futures remain uncertain after a Brussels commercial court extended protection from creditors for Sabena Interservice Center by two weeks to Dec. 12.
The next day the court president will decide whether to grant the coordination center permanent creditor protection. If the creditors refuse the proposed business plan, SIC will go bankrupt and consequently so will DAT and Sabena Technics, which owe SIC
€112 million ($100.4 million) and €93 million respectively. As creditors to SIC, the assets of the units could be confiscated if the business plan is rejected.
Meanwhile, it is still not clear how DAT wants to position itself. Until now the Regional airline that is taking over defunct Sabena's routes has not presented a business plan.
Over the weekend, Minister for Public Enterprises Rik Daems countered rumors that
he had been asked for extra funding for DAT by either Maurice Lippens or Etienne Davignon. The industrialist duo is trying to amass €200 million, including €155 million from private companies, to fund Sabena's successor. "I have not been approached by either," Daems said.
The daily Le Soir had reported that Lippens and Davignon hope to double the eur200
million by asking the government for a further €75 million and converting the €125
million bridging loan inherited from Sabena into shares. The European Commission undoubtedly would reject the latter, as DAT would not be eligible for any state aid
because Sabena already has benefited from government funds. The terms of the bridging loan would prevent it from being converted, European Transport Commissioner spokesperson Gilles Gantelet said. But he added that there "would be nothing to stop the government investing in the company as a private investor." Neither the federal nor
regional governments is inclined to do so.
Despite its uncertain future, DAT launched thrice-daily service to Bologna and Hanover,
twice-daily service to Bordeaux and Bristol and a daily trip to Prague Sunday. It also
increased frequencies from two to three daily on flights to Hamburg, Turin and Venice.
DAT's load factor is approaching 40% and 54% of last week's bookings were for travel in 2002, a spokesperson said.
Sabena Technics' and DAT's futures remain uncertain after a Brussels commercial court extended protection from creditors for Sabena Interservice Center by two weeks to Dec. 12.
The next day the court president will decide whether to grant the coordination center permanent creditor protection. If the creditors refuse the proposed business plan, SIC will go bankrupt and consequently so will DAT and Sabena Technics, which owe SIC
€112 million ($100.4 million) and €93 million respectively. As creditors to SIC, the assets of the units could be confiscated if the business plan is rejected.
Meanwhile, it is still not clear how DAT wants to position itself. Until now the Regional airline that is taking over defunct Sabena's routes has not presented a business plan.
Over the weekend, Minister for Public Enterprises Rik Daems countered rumors that
he had been asked for extra funding for DAT by either Maurice Lippens or Etienne Davignon. The industrialist duo is trying to amass €200 million, including €155 million from private companies, to fund Sabena's successor. "I have not been approached by either," Daems said.
The daily Le Soir had reported that Lippens and Davignon hope to double the eur200
million by asking the government for a further €75 million and converting the €125
million bridging loan inherited from Sabena into shares. The European Commission undoubtedly would reject the latter, as DAT would not be eligible for any state aid
because Sabena already has benefited from government funds. The terms of the bridging loan would prevent it from being converted, European Transport Commissioner spokesperson Gilles Gantelet said. But he added that there "would be nothing to stop the government investing in the company as a private investor." Neither the federal nor
regional governments is inclined to do so.
Despite its uncertain future, DAT launched thrice-daily service to Bologna and Hanover,
twice-daily service to Bordeaux and Bristol and a daily trip to Prague Sunday. It also
increased frequencies from two to three daily on flights to Hamburg, Turin and Venice.
DAT's load factor is approaching 40% and 54% of last week's bookings were for travel in 2002, a spokesperson said.
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DAT has no business plan? They're certainly not faring too well at NCL in competition with BE. BE are advertising their route, DAT aren't. Yesterday BE had 31 pax compared to 7 on the DAT. Oh dear! 
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i bougt a virgin express ticket to Brussels last week to see a friend and on the way there it was about 120 pax. on the way back was on a DAT aircraft that had 34 pax, spoke to the checkin girl and 31 of them were virgin pax on their allocation, the rest DAT. that was average load for DAT 3-5 pax. surely they cannot sustai this for long. virgin express seem to be keeping them afloat. we have noticed less 3rd party pax on our aircraft as well from one world. some airlines are benefitting whiles others not/.
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Latest from ATWOnline - I see that the cost escalations are already starting! 
New DAT unveils higher-cost business plan
Dateline: Wednesday December 05, 2001
New DAT's business plan calls for an investment of €295 million ($263.1 million), €95 million than originally planned, for the first phase of restarting Sabena through its
regional operator (ATWOnline, Dec. 4).
"We wrote a letter to Santa Claus," joked former European Commissioner and new DAT Chairman Etienne Davignon while presenting the plan. About 35 Belgian companies would invest €155 million, government agencies would account for €45 million and Sabena Interservice Center, which is operating under temporary creditor protection, would provide €95 million.
The plan's first phase comprises an exclusively European network with 34 destinations. The second phase would introduce 13 long-haul destinations, including three African routes [EBB, KGL and FIH], by year end, as well as some US destinations and more African routes next summer. The expansion would require an additional €115 million.
Davignon confirmed he is negotiating with the European Commission to extend the
three-month, €125 million bridge loan to Sabena by an extra three months. He also
did not exclude the possibility of extra government funds, which now represent about
15% of the €295 million in total capital.
Talks with Virgin Express are continuing, he
added; "If Virgin Express pops up with a better business plan than ours, we will
certainly listen."
Dateline: Wednesday December 05, 2001
New DAT's business plan calls for an investment of €295 million ($263.1 million), €95 million than originally planned, for the first phase of restarting Sabena through its
regional operator (ATWOnline, Dec. 4).
"We wrote a letter to Santa Claus," joked former European Commissioner and new DAT Chairman Etienne Davignon while presenting the plan. About 35 Belgian companies would invest €155 million, government agencies would account for €45 million and Sabena Interservice Center, which is operating under temporary creditor protection, would provide €95 million.
The plan's first phase comprises an exclusively European network with 34 destinations. The second phase would introduce 13 long-haul destinations, including three African routes [EBB, KGL and FIH], by year end, as well as some US destinations and more African routes next summer. The expansion would require an additional €115 million.
Davignon confirmed he is negotiating with the European Commission to extend the
three-month, €125 million bridge loan to Sabena by an extra three months. He also
did not exclude the possibility of extra government funds, which now represent about
15% of the €295 million in total capital.
Talks with Virgin Express are continuing, he
added; "If Virgin Express pops up with a better business plan than ours, we will
certainly listen."
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Hi,
I'll be rude on this one, but as a Belgian - but not sabena! - pilot I'll say this: It seems like Dat is starting on the same wrong bases left over by our world-famous loss making national airline, since after a few weeks "existence" it requires the help of public investment (my money, indeed!!!). WHAT FOR? The market was open at BRU with sabena ceasing activities, and a lot of sectors were then left uncovered, so why did they immediately start making the same flight numbers and schedules as VEX and start playing competition? We've seen it: the outcome is that they leave with a single pax on board... So, kill this sick bird before it spreads its deseases again among us, because if it keeps running continuously with losses while being refilled with public investment, then it will also keep on killing the belgian market and scare investors away from putting money in new company.
TEA, Air Belgium and lately Citybird, all have been - some closer than others, it is true - victims of the unfair competition with sobelair, affiliate charter transporter to Sabena, because it ws running, this way:constantly making losses unpunished. No private investor can match this. Result: even the big fished who eated all the others got eaten... by himself.
A famous belgian story, again... and it ain't over believe me!
I'll be rude on this one, but as a Belgian - but not sabena! - pilot I'll say this: It seems like Dat is starting on the same wrong bases left over by our world-famous loss making national airline, since after a few weeks "existence" it requires the help of public investment (my money, indeed!!!). WHAT FOR? The market was open at BRU with sabena ceasing activities, and a lot of sectors were then left uncovered, so why did they immediately start making the same flight numbers and schedules as VEX and start playing competition? We've seen it: the outcome is that they leave with a single pax on board... So, kill this sick bird before it spreads its deseases again among us, because if it keeps running continuously with losses while being refilled with public investment, then it will also keep on killing the belgian market and scare investors away from putting money in new company.
TEA, Air Belgium and lately Citybird, all have been - some closer than others, it is true - victims of the unfair competition with sobelair, affiliate charter transporter to Sabena, because it ws running, this way:constantly making losses unpunished. No private investor can match this. Result: even the big fished who eated all the others got eaten... by himself.
A famous belgian story, again... and it ain't over believe me!
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2low2fast
I doubt many Sabena or DAT pilots would agree with you, but you are, never the less, correct. Belgium is obviously too small to support a flag carrier. Sabena and Swissair are only the beginning of an escalatring trend in Europe toward rationalization. I fear many more job losses on the horizon.
I doubt many Sabena or DAT pilots would agree with you, but you are, never the less, correct. Belgium is obviously too small to support a flag carrier. Sabena and Swissair are only the beginning of an escalatring trend in Europe toward rationalization. I fear many more job losses on the horizon.
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raas767,
well, rationalisation will certainly be un the agenda, that's true, but as far as job losses are concerned, I don't have enough experience in this world to judge that much, but I feel like the job cut happening now is more the result of the general downturn. At the time when they were crying after pilots in europe, airplanes were full though there were many airline flying, so, when the downturn will find an end, there might be less carriers on the market, but, the amount of pax will get back sooner or later, so there is still a chance that everybody find a seat back, dont you think?
well, rationalisation will certainly be un the agenda, that's true, but as far as job losses are concerned, I don't have enough experience in this world to judge that much, but I feel like the job cut happening now is more the result of the general downturn. At the time when they were crying after pilots in europe, airplanes were full though there were many airline flying, so, when the downturn will find an end, there might be less carriers on the market, but, the amount of pax will get back sooner or later, so there is still a chance that everybody find a seat back, dont you think?
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Irrespective of who goes broke and who doesn't, the continuing trend will be for more demand for air travel... therefore more aircraft and more crews will be required- just not right at the moment!
Also, it is quite untrue that countries like Belgium can't afford a flag carrier- they can, they simply have to make it profitable. Same goes for all the others.
Having worked for Sabena in Brussels, there is no doubt at all in my mind that a huge amount of money was wasted on stuff that had nothing to do with the business of flying aircraft. That is the real problem.
Also, it is quite untrue that countries like Belgium can't afford a flag carrier- they can, they simply have to make it profitable. Same goes for all the others.
Having worked for Sabena in Brussels, there is no doubt at all in my mind that a huge amount of money was wasted on stuff that had nothing to do with the business of flying aircraft. That is the real problem.
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Don't forget that Luxair's Director is a Belgian, and Luxair made the transition to a privatised airline a few years ago. Luxemburg's Big Brother Belgium is going through the same transition. The difference is that Sabena never made a big deal out of cargo carrying, and was therefore floored when carrying passengers (only) became non-profitable (according to the Swiss, that is).
I give DAT a good chance at survival if it doesnt have the same policies as Sabena w.r.t. cargo, code-sharing, etc. And I believe the new management has eyes and ears and common sense enough to let everyone have a say when it comes to policy and decision-making.
At least the investors are convinced, after reading today about the 35 Belgian companies that have pledged to invest in our new Belgian airline (no longer a NATIONAL one).
I give DAT a good chance at survival if it doesnt have the same policies as Sabena w.r.t. cargo, code-sharing, etc. And I believe the new management has eyes and ears and common sense enough to let everyone have a say when it comes to policy and decision-making.
At least the investors are convinced, after reading today about the 35 Belgian companies that have pledged to invest in our new Belgian airline (no longer a NATIONAL one).
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Dear guys, your optimistic thoughts go straight to my belgian heart, but still it makes me feel like you don't measure the amplitude of the sickness that goes around everything that is concerned by Sabena.
I wish you are all right.
I wish you are all right.
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But apart from the CEO most of the DAT Mangement are the Sabena Management so what chance, perhaps they have learned from their mistakes. Feel a bit sorry for DAT, they would have managed better on their own, and
as they were doing before the big boys came
along to make a mess of things for them
as they were doing before the big boys came
along to make a mess of things for them
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Everybody at DAT is convinced they can make it happen.Altough none of the pilots I spoke with are too happy about the salary cuts the general feeling is that the company has a very good chance to survive and to be profitable.
What is needed is some quick decision making by the various governments to invest so we can really start working and making some money
What is needed is some quick decision making by the various governments to invest so we can really start working and making some money
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It seems like the A330 option has flown out of the window for DAT with VG Airlines Freddy van Gaever and his chief pilot, Raymond Nicolai due to fly off tomorrow to Sweden where they will be apparently taking delivery of two A330s on lease from Novair.
These aircraft will be operated to FIH and other points in Africa; and will apparently be joined by more earlier in the year.
Apparently, this deal has been put together by van Gaever and Christoph Muller, the former CEO of Sabena.
Check out the new VG Airlines livery here!
[ 12 December 2001: Message edited by: The Guvnor ]
These aircraft will be operated to FIH and other points in Africa; and will apparently be joined by more earlier in the year.
Apparently, this deal has been put together by van Gaever and Christoph Muller, the former CEO of Sabena.
Check out the new VG Airlines livery here!
[ 12 December 2001: Message edited by: The Guvnor ]
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Bleke - transatlantic traffic is well down. I understand that they are in negotiations with a Dutch tour operator about operations to Aruba.
VG have also stated an interest in operating to South Africa (JNB and CPT) though with very low yields and a Rand that's collapsed 40% in the last 12 months this might not be a sensible move: traffic is huge at this time of year (December to March) but low throughout the rest of the year.
I suspect that an accommodation will be reached where DAT provides the regional feed to VG's long haul operations.
This would be a logical - and elegant - solution to the SN/DAT problem. However, as van Gaever is Flemish, it's likely that Walloon politics will interfere again! 
VG have also stated an interest in operating to South Africa (JNB and CPT) though with very low yields and a Rand that's collapsed 40% in the last 12 months this might not be a sensible move: traffic is huge at this time of year (December to March) but low throughout the rest of the year.
I suspect that an accommodation will be reached where DAT provides the regional feed to VG's long haul operations.
This would be a logical - and elegant - solution to the SN/DAT problem. However, as van Gaever is Flemish, it's likely that Walloon politics will interfere again!
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Guvnor,
conerning those 330īs of Novair (370Y config with underfloor lavoratories), think one of those is already written off (up to 10m yearly lease rates & maint reserves)in their balance-sheets as they intended to sub-lease the AC for some time while it was grounded due to a lack of demand.
Do you know of any connection to tour operators as Thomas Cook and Jetair would need some long-haul uplift in case of an SLR bankruptcy. I cant believe the cookies intend to fly on their new JMC Be, market is simply a little small.
Thanks. silversurfer
conerning those 330īs of Novair (370Y config with underfloor lavoratories), think one of those is already written off (up to 10m yearly lease rates & maint reserves)in their balance-sheets as they intended to sub-lease the AC for some time while it was grounded due to a lack of demand.
Do you know of any connection to tour operators as Thomas Cook and Jetair would need some long-haul uplift in case of an SLR bankruptcy. I cant believe the cookies intend to fly on their new JMC Be, market is simply a little small.
Thanks. silversurfer
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Silversurfer - I hear that five A320s are going from JMC to Thomas Cook Belgium; I suspect those will be using UK rather than Belgian flight deck crews but with Belgian cabin crew. Operations due to kick off in March - and of course they can operate within Europe on JMC's AOC.
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soddit indeed so - the word is that there will be no investments from the government (local or national). Davignon and Lippens say there is not enough money and not enough support for a healthy continuation of DAT. There is no clear businessplan - it would therefore be a miracle when DAT survives beyond tomorrow.
That said, the Belgian government does have a habit of changing the rules to suit themselves - especially where matters of national pride are concerned.
The fat lady might be on the stage, but she hasn't opened her mouth yet!
That said, the Belgian government does have a habit of changing the rules to suit themselves - especially where matters of national pride are concerned.
The fat lady might be on the stage, but she hasn't opened her mouth yet!
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Well, if they ever succeed in making money they'll find another way than this one:
Virgin Express has a block seat agreement with DAT on the CPH/BRU service. Fine. A mate of mine was travelling full fare business class CPH-BRU last saturday, but was denied boarding as the aircraft was full of VEX pax ! Indeed, they sent him CPH-BSL-BRU with Crossair.
How on earth they'll ever make a profit by turning their own full fare pax down, in order to cater for the competitors low fare pax is way beyond me.
Virgin Express has a block seat agreement with DAT on the CPH/BRU service. Fine. A mate of mine was travelling full fare business class CPH-BRU last saturday, but was denied boarding as the aircraft was full of VEX pax ! Indeed, they sent him CPH-BSL-BRU with Crossair.
How on earth they'll ever make a profit by turning their own full fare pax down, in order to cater for the competitors low fare pax is way beyond me.
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Virgin Express & DAT had a block seat agreement up until Friday 16th when merger talks broke down between the two sides. It seems that DAT's business plan has been rejected. More news on Tuesday 20th. Lets hope it's not another grim day in aviation, but the future does not look good for DAT unless they come up with a better business plan and secure funding from the potential investors.