Go Profits Up 51%!
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Go Profits Up 51%!
From ATWOnline - once again showing that it's the low cost, no frills carriers that are the success stories of the aviation industry.
Congratulations to Barbara and the team!
Congratulations to Barbara and the team!
Go's half-year profit climbs 51%
Dateline: Tuesday November 20, 2001
Go earned £16.9 million ($24.1 million) before taxes in the half-year ended Sept. 30, a 51% gain from £11.2 million a year earlier.
Revenues rose 44% to £128.2 million and total passengers increased 41% to 2.07 million. Internet sales accounted for 64% of the total against 48% in the year-ago period. Actual load factor, excluding no-shows, decreased half a point to 73.7%.
"Recent developments in the airline industry have presented opportunities for the low-cost sector," CEO Barbara Cassani said in a statement. "Our immediate action in reducing fares has maintained load factors across the network. We are continuing to reduce costs to protect profits in this new lower-yield environment."
In Oct. the budget airline raised its capacity by 31% versus the year-ago period to 472 million ASKs. Actual load factor remained stable at 75.5%. It declined to provide its RPK total for the month.
Dateline: Tuesday November 20, 2001
Go earned £16.9 million ($24.1 million) before taxes in the half-year ended Sept. 30, a 51% gain from £11.2 million a year earlier.
Revenues rose 44% to £128.2 million and total passengers increased 41% to 2.07 million. Internet sales accounted for 64% of the total against 48% in the year-ago period. Actual load factor, excluding no-shows, decreased half a point to 73.7%.
"Recent developments in the airline industry have presented opportunities for the low-cost sector," CEO Barbara Cassani said in a statement. "Our immediate action in reducing fares has maintained load factors across the network. We are continuing to reduce costs to protect profits in this new lower-yield environment."
In Oct. the budget airline raised its capacity by 31% versus the year-ago period to 472 million ASKs. Actual load factor remained stable at 75.5%. It declined to provide its RPK total for the month.
Uncle Monty - Style over substance? Or is that just a throwaway phrase? An 18 Boeing airline making sustainable money after less than 4 years. Looks pretty substantial to me.
Nobody ever claimed the figures were full year and I don't imagine many pilots were enlightened by you pointing out that airlines make most money during the summer.
Are easyJet and Ryan load factors in the mid 80's? Maybe they are but they weren't the last time I looked. Would you check for me?
As for offering advanced booking for next summer this is largely down to the fact that there a significant numbers of satisfied pax who complain that they want to book next year but can't. Brand loyalty is going to be very important as the sector matures and the product is bascially the same.
Why do you view internet sales as being some kind of negative issue? Not everyone has the web you know. I see aircraft jam packed with old crinklies off down to the Villa in Alicante/Faro/Malaga et al. I am convinced that they booked using the very slick call centre. Yes there is a cost with a call centre. Is it a premium on the ticket price that the customer is happy with? Looks like. Just like Go sends out a ticket when easy and Ryan don't.
As for getting a hammering on the Ireland Scotland routes would it not be equally fair to say that easyJet and Ryan are taking a hammering from us? I don't think anyone is making money up there at the moment. Which is a real shame for the airlines but good news for the pax.
Personally I would prefer the low costs to focus on bringing low cost to new regions rather than fight each other in areas where low cost already exists.
But what do I know.
Cheers,
WWW
Nobody ever claimed the figures were full year and I don't imagine many pilots were enlightened by you pointing out that airlines make most money during the summer.
Are easyJet and Ryan load factors in the mid 80's? Maybe they are but they weren't the last time I looked. Would you check for me?
As for offering advanced booking for next summer this is largely down to the fact that there a significant numbers of satisfied pax who complain that they want to book next year but can't. Brand loyalty is going to be very important as the sector matures and the product is bascially the same.
Why do you view internet sales as being some kind of negative issue? Not everyone has the web you know. I see aircraft jam packed with old crinklies off down to the Villa in Alicante/Faro/Malaga et al. I am convinced that they booked using the very slick call centre. Yes there is a cost with a call centre. Is it a premium on the ticket price that the customer is happy with? Looks like. Just like Go sends out a ticket when easy and Ryan don't.
As for getting a hammering on the Ireland Scotland routes would it not be equally fair to say that easyJet and Ryan are taking a hammering from us? I don't think anyone is making money up there at the moment. Which is a real shame for the airlines but good news for the pax.
Personally I would prefer the low costs to focus on bringing low cost to new regions rather than fight each other in areas where low cost already exists.
But what do I know.
Cheers,
WWW
I think that right now any airline that is making money should be applauded. I also think its a shame that some people seem to want to see companies fail and many people lose their jobs. I hope that all companies will survive and prosper as the work is there in our own little niches of the market.
well thats what i reckon anyway
[ 20 November 2001: Message edited by: stalling attitude ]
well thats what i reckon anyway
[ 20 November 2001: Message edited by: stalling attitude ]
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Uncle Monty ,
Where have you been hiding!!!
"Any airline can make money during the summer months"
Really!! Any airline!!?!! Sabena- Swissair- BA.
"Go's load factors are currently 10 percentage points and more below easyJet and Ryanair."
So what? Go's costs MAY be less and have a lower break even figure.
"Internet sales are some 20-25 percentage points below those two."
So? We still have a call center. As WWW says it allowes the older generation to book their winter breaks in ALC/AGP and places. Judging from last years flights we where full with the blue rinse brigade. They are fantastic to our cabin crew also (polite).
"It would appear all isn't rosey on the cashflow front either"
Where do you get your facts from?
"The airline is also getting a hammering on its Ireland/Scotland routes from Ryanair and easyJet."
I flew these routes last week. DUB to EDI and GLA 148 pax consistantly.
"Great PR from Go"
Yes- Barbara is very good at it.
Any how, any airline that is doing well now, dont knock. You never know when you may need a job.
Where have you been hiding!!!
"Any airline can make money during the summer months"
Really!! Any airline!!?!! Sabena- Swissair- BA.
"Go's load factors are currently 10 percentage points and more below easyJet and Ryanair."
So what? Go's costs MAY be less and have a lower break even figure.
"Internet sales are some 20-25 percentage points below those two."
So? We still have a call center. As WWW says it allowes the older generation to book their winter breaks in ALC/AGP and places. Judging from last years flights we where full with the blue rinse brigade. They are fantastic to our cabin crew also (polite).
"It would appear all isn't rosey on the cashflow front either"
Where do you get your facts from?
"The airline is also getting a hammering on its Ireland/Scotland routes from Ryanair and easyJet."
I flew these routes last week. DUB to EDI and GLA 148 pax consistantly.
"Great PR from Go"
Yes- Barbara is very good at it.
Any how, any airline that is doing well now, dont knock. You never know when you may need a job.
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It is my belief that Go have made a profit from start up quicker than both FR and EZY, in what can be arguably a more cut throat environment. Not bad going really.
as for the routes launched early, the research shows that most pax on FAO, AGP, and ALC are holiday makers, not last minute biz pax. it makes sense to launch sales early for these routes as the families of 5 that these routes serve like booking early so they can secure accomodation as well. It also gives Go a chance to sell seats to customers who might go thru tour operators instead.
anyone, thats my few thoughts, no doubt i'll get shouted down!!!
as for the routes launched early, the research shows that most pax on FAO, AGP, and ALC are holiday makers, not last minute biz pax. it makes sense to launch sales early for these routes as the families of 5 that these routes serve like booking early so they can secure accomodation as well. It also gives Go a chance to sell seats to customers who might go thru tour operators instead.
anyone, thats my few thoughts, no doubt i'll get shouted down!!!
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Well done to GO for making money, having low fares, good load factors and for giving good jobs to some of the boys and girls from the other former low fares, high class airline, VEI! Jolly good show, I must say!
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I see in the FT that it looks like Go might be pulling off the Dublin routes in the not too distant future - it quotes Barbara Cassani as saying that they will "review them in two months".
Hopefully, she'll have learnt her lesson about trying to outsmart Tipperary farmers!
Hopefully, she'll have learnt her lesson about trying to outsmart Tipperary farmers!
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Good points from all parties on this one. It is a real shame how we all tend to regard each others companies as football supporters regard their bitterest rivals. Then, miraculously, when we need a job with that rival company how our attitudes change. You know who you are out there, you're the guy who won't be happy wherever you go, who tries to slur everyone and everything including the spoon that fed you for a while. And most importantly you've forgotten the reason you became a pilot! That is the saddest thing of all.
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Guvnor, Tipperary farmers!!. Not so. Mol is from Co Westmeath... Mullingar actually. Call in and see him next time you are in the area . He lives in Gigginstown House which is open to the public at weekends (this to avail of a tax free designation)and he will charge you a few pounds for the pleasure. Also bring some lose change the loo may be coin operated
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with reference to an earlier thread, yes i heard go were increasing frequency on ncl route to 3xdaily. the extra one being mid afternoon. most NCL/STN flights are fully booked. And I HOPE they are introducing european routes, just what NCL needs at the moment, considering the business it has lost recently. I believe PMI, FAO, NCE, AGP, BCN and CPH would be a safe start! 
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Rumoured that it has cost Ryanair about £5m so far in trying to drive GO off the Scotland/Dublin routes. It would be a real pity to see GO giving in to Ryanair's pressure tactics on these routes. Why doesn't GO take advantage of the Irish Airport Authority incentives and give the Irish public what Ryanair won't (with the exception of a few)i.e. direct services to mainland Europe - Spain a typical example.
Well done on the results and nice people to work with by all accounts.
Well done on the results and nice people to work with by all accounts.
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Guvnor, You may be confusing MoL and Tony Ryan origins. MoL born in Lynn Road area of Mullingar co Westmeath to well to do parents .One of seven children.( Profile Irish Indo sat 10th nov)Sorry, I gave you a bum steer on the house opening times ,it opens weekdays not weekends.Other advice still holds.The Ryans were Tipperary born allright so you were nearly right.
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i'm based at STN and fly on the NCL route regularly.. .as you know we are launching a base at EMA at the moment.. .you may have read that we are purchasing or leasing between 70 and 100 Airbus A319s or Next Generation 737s.. .most will be based at STN/BRS/EMA but some apparently will be used for either another UK or a Euro hub.if its the UK it will be either EDI or NCL.. . <img src="smile.gif" border="0">