Go "Throws in the Towel"!
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Go "Throws in the Towel"!
From today's Scotsman:
Go to cut Scots flights
Andrew Murray-Watson Senior Business Reporter
GO, THE low-cost airline and former subsidiary of British Airways, is throwing in the towel in its Scottish battle against rival no-frills carriers.
The airline announced it is reducing frequency on its routes to Belfast from Edinburgh and Glasgow and from Edinburgh to Dublin, from three flights a day to two with effect from 3 December.
The airline has been fighting for customers against easyJet on the Belfast service and Ryanair on flights to Dublin.
The reduction in Go services to Dublin from Edinburgh comes barely a month after the route was launched and is an embarrassing setback for the company in its bid to challenge Ryanair in its heartland.
Last month, Go offered return flights from Scotland to Dublin for £35 in a bold move to capture new territory, only to be trumped by Ryanair, which countered with prices as low as £10 return.
The Scottish cutbacks will be widely interpreted as the first sign that Go is lagging third and last in the dogfight between the budget carriers.
It is believed that Michael O’Leary, chief executive of Ryanair had privately vowed to spend whatever was necessary to fend off the challenge of Go, which he saw as a threat to his airline’s dominance in Ireland.
A source close to the company said yesterday that Ryanair, which flies four times a day from Edinburgh to Dublin had discarded its ultra-low cost model to offer services from the Scottish capital.
"Ryanair is paying exactly the same as Go to fly from Edinburgh. It has lost substantial sums of money on the route, and is prepared to continue to do so. But the strategy seems to be working," he said.
A spokeswoman for the Irish carrier denied the airline was running the service at a sizeable loss but added: "It is an important strategic move for us to fend off the Go challenge. They must be hurting more than us."
She added that Go’s partial withdrawal from the route would have far-reaching implications for the future expansion strategy of budget airlines.
Ryanair has carried more than 35,000 passengers on its Edinburgh to Dublin service since its launch in September and said yesterday that its aircraft on the route were more than 95 per cent full. The spokeswoman said 70 per cent of seats in November had already been sold.
Any hint that Go is losing out to its rivals will also be a blow to 3i, the venture capital firm which backed Barbara Cassani’s £110 million management buy-out of the company from its parent British Airways.
A spokesman for Go denied it was losing the battle against easyJet and Ryanair and said: "The airline had been forced to reduce capacity on its Scottish routes in order to boost the number of flights on its new Heathrow to Belfast route.
"Because BA pulled out of such a major route as London to Belfast we felt obliged to act. We have done so by increasing the frequency of flights on that route from four to six a day each way.
"BA’s action presented us with a major opportunity that we could not afford to miss. As our resources are limited we had no alternative but to look for capacity elsewhere."
Andrew Murray-Watson Senior Business Reporter
GO, THE low-cost airline and former subsidiary of British Airways, is throwing in the towel in its Scottish battle against rival no-frills carriers.
The airline announced it is reducing frequency on its routes to Belfast from Edinburgh and Glasgow and from Edinburgh to Dublin, from three flights a day to two with effect from 3 December.
The airline has been fighting for customers against easyJet on the Belfast service and Ryanair on flights to Dublin.
The reduction in Go services to Dublin from Edinburgh comes barely a month after the route was launched and is an embarrassing setback for the company in its bid to challenge Ryanair in its heartland.
Last month, Go offered return flights from Scotland to Dublin for £35 in a bold move to capture new territory, only to be trumped by Ryanair, which countered with prices as low as £10 return.
The Scottish cutbacks will be widely interpreted as the first sign that Go is lagging third and last in the dogfight between the budget carriers.
It is believed that Michael O’Leary, chief executive of Ryanair had privately vowed to spend whatever was necessary to fend off the challenge of Go, which he saw as a threat to his airline’s dominance in Ireland.
A source close to the company said yesterday that Ryanair, which flies four times a day from Edinburgh to Dublin had discarded its ultra-low cost model to offer services from the Scottish capital.
"Ryanair is paying exactly the same as Go to fly from Edinburgh. It has lost substantial sums of money on the route, and is prepared to continue to do so. But the strategy seems to be working," he said.
A spokeswoman for the Irish carrier denied the airline was running the service at a sizeable loss but added: "It is an important strategic move for us to fend off the Go challenge. They must be hurting more than us."
She added that Go’s partial withdrawal from the route would have far-reaching implications for the future expansion strategy of budget airlines.
Ryanair has carried more than 35,000 passengers on its Edinburgh to Dublin service since its launch in September and said yesterday that its aircraft on the route were more than 95 per cent full. The spokeswoman said 70 per cent of seats in November had already been sold.
Any hint that Go is losing out to its rivals will also be a blow to 3i, the venture capital firm which backed Barbara Cassani’s £110 million management buy-out of the company from its parent British Airways.
A spokesman for Go denied it was losing the battle against easyJet and Ryanair and said: "The airline had been forced to reduce capacity on its Scottish routes in order to boost the number of flights on its new Heathrow to Belfast route.
"Because BA pulled out of such a major route as London to Belfast we felt obliged to act. We have done so by increasing the frequency of flights on that route from four to six a day each way.
"BA’s action presented us with a major opportunity that we could not afford to miss. As our resources are limited we had no alternative but to look for capacity elsewhere."
Bit strong to suggest we're "throwing in the towel", eh Guv?
Go are making money and recently gave all employees a £1050 profit-share bonus. Fyi almost all of my flights recently have been substantially full, and unlike the rest of the industry, GO are still recruiting and will be the first low-cost airline to commence operations from NCL tomorrow.
In the current economic climate Guv, some positive postings might be more appropriate...you do seem to have a history of knocking GO...why?
Btw Guv, how's your airline doing?
Go are making money and recently gave all employees a £1050 profit-share bonus. Fyi almost all of my flights recently have been substantially full, and unlike the rest of the industry, GO are still recruiting and will be the first low-cost airline to commence operations from NCL tomorrow.
In the current economic climate Guv, some positive postings might be more appropriate...you do seem to have a history of knocking GO...why?
Btw Guv, how's your airline doing?
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Rocket Ron - if you look closely, you'll see that I put "Throws in the Towel" in quotation marks - in other words, I was quoting from the first sentence/paragraph of the article, viz:
So no, I'm not 'having a go' at Go! 
As for my current project: it's coming along very nicely thank you for asking.
GO, THE low-cost airline and former subsidiary of British Airways, is throwing in the towel in its Scottish battle against rival no-frills carriers.
As for my current project: it's coming along very nicely thank you for asking.
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Gul ddukat, I think the "LHR-BFS route" was based on the quote from the Go spokesman - although when he referred to "the route" I guess he meant London to Belfast meaning in their case STN not LHR.
All comes down to when we talk of routes do we mean airport to airport or city to city. Airlines are expert at changing their definition to serve their political needs...
[ 31 October 2001: Message edited by: brabazon ]
[ 31 October 2001: Message edited by: brabazon ]
[ 31 October 2001: Message edited by: brabazon ]
All comes down to when we talk of routes do we mean airport to airport or city to city. Airlines are expert at changing their definition to serve their political needs...
[ 31 October 2001: Message edited by: brabazon ]
[ 31 October 2001: Message edited by: brabazon ]
[ 31 October 2001: Message edited by: brabazon ]
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It is believed that Michael O’Leary, chief executive of Ryanair had privately vowed to spend whatever was necessary to fend off the challenge of Go, which he saw as a threat to his airline’s dominance in Ireland.
"It (Ryanair) has lost substantial sums of money on the route, and is prepared to continue to do so. But the strategy seems to be working,"
"It is an important strategic move for us to fend off the Go challenge. They must be hurting more than us."
How is this different from the kind of abuses the traditional carriers were accused of?
If FR is losing money (as their spokesman claims) then what will happen when GO has left? Will they not bump the price up again?
Where is Mr.O'Learys famous 'competition' now?
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And to counter The Scotsman from todays Glasgow Herald. I wonder if the right hand knows what the left hand is doing?
TUTH
------------------------------------------------------
Just watch us Go, says airline chief
BARBARA Cassani, the 41-year-old chief executive of budget airline Go, sipped cappucino at Edinburgh Airport yesterday and affirmed her commitment to expanding the company's operations in Scotland.
"It's too early to say exactly how and when we will be expanding in Scotland, but we will certainly be expanding," she said.
"We are looking at adding more frequent flights and more destinations. We really want to fly to Europe from Scotland. Eventually, we're hoping to find a way to serve cities in France, Spain, Germany, Italy and Sweden from Glasgow and Edinburgh."
Cassani was in Scotland yesterday to celebrate the first anniversary of Go flights from Glasgow and to announce the hiring of 17 cabin crew members, who will be based Edinburgh Airport.
They bring the total number of Go staff in Scotland to 50, out of a total of 800 employees in the UK and at various European airports, which are served by flights from London Stansted and Bristol.
Go, the former British Airways subsidiary launched in 1997 and sold in a management buy-out last year via venture capitalist firm 3i for £100m, says it served 1.7 million passengers on its Scottish routes.
Cassani worked as a BA executive for 10 years and ran Go for three years as a stand-alone subsidiary. The management buy-out gave her the opportunity she coveted - to go it alone.
"We've gone from having a tiny presence to becoming the biggest low-cost airline serving Glasgow and Edinburgh airports. That's something I think we can rightfully be proud of," she said.
In the beginning, Cassani's critics and competitors said the company would never make it.
Ryanair's colourful chief executive Michael O'Leary said: "This is a dog. I don't think Go could ever make money."
And easyJet's chief and founder, Stelios Haji-Ioannou, said ran a contest on the company website to guess the size of Go's losses.
Cassani, one of only three female airline executives in the world, proved them wrong. Go broke into the black with a £2.7m pre-tax profit in March. This financial year, the company says it is on target for a £4m profit.
"I'm flattered to be the target of their vitriol," she said. "It means they're worried. But if you ask me what I think of Michael O'Leary, I would have to profane. In the same breath, though, I still think there is enough room for the three of us in Europe."
Like her low-cost competitors - but unlike the world's major flag carriers - Go was hardly affected by the September 11 terrorist attacks in US.
Cassani said: "Sales were dramatically affected just after September 11. We were looking at double-digit declines in the couple of weeks that followed.
"But we have no transatlantic exposure, and business bookings gradually came back."
Cassani said she is no hurry to float Go shares on the stock market.
"We're in growth mode now, so we're concentrating on keeping our prices low, offering more destinations, more frequency and gaining market share," she said.
"Six months ago, I said we might float in two or three years. I'm still saying it might be two or three years."
TUTH
------------------------------------------------------
Just watch us Go, says airline chief
BARBARA Cassani, the 41-year-old chief executive of budget airline Go, sipped cappucino at Edinburgh Airport yesterday and affirmed her commitment to expanding the company's operations in Scotland.
"It's too early to say exactly how and when we will be expanding in Scotland, but we will certainly be expanding," she said.
"We are looking at adding more frequent flights and more destinations. We really want to fly to Europe from Scotland. Eventually, we're hoping to find a way to serve cities in France, Spain, Germany, Italy and Sweden from Glasgow and Edinburgh."
Cassani was in Scotland yesterday to celebrate the first anniversary of Go flights from Glasgow and to announce the hiring of 17 cabin crew members, who will be based Edinburgh Airport.
They bring the total number of Go staff in Scotland to 50, out of a total of 800 employees in the UK and at various European airports, which are served by flights from London Stansted and Bristol.
Go, the former British Airways subsidiary launched in 1997 and sold in a management buy-out last year via venture capitalist firm 3i for £100m, says it served 1.7 million passengers on its Scottish routes.
Cassani worked as a BA executive for 10 years and ran Go for three years as a stand-alone subsidiary. The management buy-out gave her the opportunity she coveted - to go it alone.
"We've gone from having a tiny presence to becoming the biggest low-cost airline serving Glasgow and Edinburgh airports. That's something I think we can rightfully be proud of," she said.
In the beginning, Cassani's critics and competitors said the company would never make it.
Ryanair's colourful chief executive Michael O'Leary said: "This is a dog. I don't think Go could ever make money."
And easyJet's chief and founder, Stelios Haji-Ioannou, said ran a contest on the company website to guess the size of Go's losses.
Cassani, one of only three female airline executives in the world, proved them wrong. Go broke into the black with a £2.7m pre-tax profit in March. This financial year, the company says it is on target for a £4m profit.
"I'm flattered to be the target of their vitriol," she said. "It means they're worried. But if you ask me what I think of Michael O'Leary, I would have to profane. In the same breath, though, I still think there is enough room for the three of us in Europe."
Like her low-cost competitors - but unlike the world's major flag carriers - Go was hardly affected by the September 11 terrorist attacks in US.
Cassani said: "Sales were dramatically affected just after September 11. We were looking at double-digit declines in the couple of weeks that followed.
"But we have no transatlantic exposure, and business bookings gradually came back."
Cassani said she is no hurry to float Go shares on the stock market.
"We're in growth mode now, so we're concentrating on keeping our prices low, offering more destinations, more frequency and gaining market share," she said.
"Six months ago, I said we might float in two or three years. I'm still saying it might be two or three years."
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Rocket Ron - and there was me thinking that BUZZ (the only low cost operators to bother to fly anywhere near us in southern Spain) were already running out of Newcastle?
Recent advert - NCL-STN £10, or so I'm told by the filks back home. Care to match that? Care to run down here too? We would be glad of the competition and believe me there is enough trade.
Recent advert - NCL-STN £10, or so I'm told by the filks back home. Care to match that? Care to run down here too? We would be glad of the competition and believe me there is enough trade.
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TUTH - I don't see anything in your clipping to counter the first..... GO is reducing flights between Scotland and Ireland but looking to increase routes between Scotland and elsewhere.
BAE - I think that offer may indeed have come from GO who start flying to Newcastle today. I can't see Newcastle on the Buzz list fo destinations from their website.
[ 01 November 2001: Message edited by: Oleo ]
BAE - I think that offer may indeed have come from GO who start flying to Newcastle today. I can't see Newcastle on the Buzz list fo destinations from their website.
[ 01 November 2001: Message edited by: Oleo ]
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Sorry about the dis-information re: BUZZ. I was give that news by my Dad back in the UK (we are a little cut off here!) and despite having 3 sons in aviation he still can't get anything right.
Must be his age.
Good on you GO, that route may well make it easier for me to go see relatives (even if i have to BUZZ to STN first). Next trick for GO, come down to south west Spain - there must be enough trade because the BUZZ banana always seems full.
Must be his age.
Good on you GO, that route may well make it easier for me to go see relatives (even if i have to BUZZ to STN first). Next trick for GO, come down to south west Spain - there must be enough trade because the BUZZ banana always seems full.
BAE Employee,
For GO and easyJet alternatives:
Faro is 2hrs 7min from the college front gate and Malaga is 2hr 49 mins. In a clapped out 2.0 Sierra with the aircon at max. As I have demonstrated.
There is no market to compete for on the JRX-STN route that Buzz are not already catering for quite adequately...
Sorry,
WWW
For GO and easyJet alternatives:
Faro is 2hrs 7min from the college front gate and Malaga is 2hr 49 mins. In a clapped out 2.0 Sierra with the aircon at max. As I have demonstrated.
There is no market to compete for on the JRX-STN route that Buzz are not already catering for quite adequately...
Sorry,
WWW
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Something positive! GO are doing very well on their new STN-NCL route. The lowest pax figure there's been thus far is 102, apart from that they've all been above the 120 mark. The future is low cost! Braathens have just announced they're pulling out of NCL by the end of December, maybe GO can start a Scandinavian route!
