Royal Brunei Airlines In Chaos
"Strictly Confidential" memo but was announced in a press release 21 June !
With the MEL route only commencing in early April, I presume that the implication is that if it does not show a profit within X months, it too will get the chop.
With the MEL route only commencing in early April, I presume that the implication is that if it does not show a profit within X months, it too will get the chop.
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ROYAL BRUNEI AIRLINES IN TROUBLE Royal Brunei pays the price of decades-long wrong strategy - eTurboNews.com
BANGKOK (eTN)- Arrogance? Probably. Lack of vision? Certainly. Royal Brunei Airlines remains a mystery among Southeast Asian carriers. The carrier serves Southeast Asia’s second wealthiest country after Singapore with a GDP per capita of over US$ 20,000. But at the same time, the Sultanate of Brunei is the less populated countries among ASEAN members with a population of 360,000 inhabitants. Although Brunei population is small, the airline’s catchment area is rather attractive. Brunei is the only independent Kingdom located on Borneo Island with its population of 20 million inhabitants. Southern Borneo (Kalimantan) belongs to Indonesia, while a large part of Northern Borneo opted half a century ago to rally the Malaysian Federation. An independent and neutral Brunei could then position itself as the ideal international gateway to connect Borneo with the rest of the world…
Except that RBA has preferred to concentrate until today on prestigious routes such as long haul flights. Its fleet is composed of Airbus A320 and Boeing 777-200 ER, leased from Singapore Airlines. And instead of offering flights to Sandakan (Malaysia), Balikpapan, Pontianak and Makassar (Indonesia), or Davao (Philippines) –they all desperately look for more international connections!-, the airline’s management found more rewarding to propose flights to Auckland, Brisbane, Dubai, London or Melbourne. Of course, in the tiny Kingdom, RBA has been long considered as a toy, an object of pride to be exhibited worldwide.
Unfortunately, this strategy cannot survive anymore in current world air transport. RBA is losing money, a lot of money on long haul flights due to the absence of O&D° passengers. Flights in transit to Australia from Southeast Asia or London were also wrongly timed, making Bandar Sri Begawan an unattractive alternative. Finally, low cost carriers in the region –especially AirAsia in neighbouring cities of Kota Kinabalu and Miri but also in Kuala Lumpur- slowly made Brunei national carrier’s own regional network moribund and its proposed fares rather expensive.
The airline’s pays now the price of its overrated ambitions. By appointing ex-Aer Lingus executive Dermot Mannion, the airline’s shareholders (in reality the Sultanate of Brunei) show finally that they understand the urgency of the situation. RBA is probably close to financial asphyxia, even its management will never admit it. But the decisions now taken by Dermot Mannion show that the situation at the airline has been seriously addressed. From August, RBA will terminate flights to Kuching in Sarawak and from October, it will end most of its intercontinental flights, abandoning Auckland, Brisbane, Perth as well as Ho Chi Minh City. From an intercontinental network which still had Frankfurt and Sydney a decade ago, RBA will be only left with three overseas destinations: London via Dubai and Melbourne. And nobody is now certain that those destinations will not be eliminated in a second phase of restructuring.
Meanwhile, Bandar Sri Begawan could be turned into the missing international gateway to Borneo Island and even to neighbouring Celebes and Mindanao Islands… Opening new routes in a circle of up to three or four hours around Brunei, offering a more competitive fare structure matching low cost airlines could dramatically change RBA destiny. A good example to take inspiration from is Singapore-based Silk Air, Singapore Airlines’ regional subsidiary. The carrier managed to grow its traffic volume despite low cost competition by offering a simplified service without compromising on high quality for but passengers. RBA Management’s announcement this week certainly marks the end of a dream… but probably also of an increasingly frightening nightmare.
BANGKOK (eTN)- Arrogance? Probably. Lack of vision? Certainly. Royal Brunei Airlines remains a mystery among Southeast Asian carriers. The carrier serves Southeast Asia’s second wealthiest country after Singapore with a GDP per capita of over US$ 20,000. But at the same time, the Sultanate of Brunei is the less populated countries among ASEAN members with a population of 360,000 inhabitants. Although Brunei population is small, the airline’s catchment area is rather attractive. Brunei is the only independent Kingdom located on Borneo Island with its population of 20 million inhabitants. Southern Borneo (Kalimantan) belongs to Indonesia, while a large part of Northern Borneo opted half a century ago to rally the Malaysian Federation. An independent and neutral Brunei could then position itself as the ideal international gateway to connect Borneo with the rest of the world…
Except that RBA has preferred to concentrate until today on prestigious routes such as long haul flights. Its fleet is composed of Airbus A320 and Boeing 777-200 ER, leased from Singapore Airlines. And instead of offering flights to Sandakan (Malaysia), Balikpapan, Pontianak and Makassar (Indonesia), or Davao (Philippines) –they all desperately look for more international connections!-, the airline’s management found more rewarding to propose flights to Auckland, Brisbane, Dubai, London or Melbourne. Of course, in the tiny Kingdom, RBA has been long considered as a toy, an object of pride to be exhibited worldwide.
Unfortunately, this strategy cannot survive anymore in current world air transport. RBA is losing money, a lot of money on long haul flights due to the absence of O&D° passengers. Flights in transit to Australia from Southeast Asia or London were also wrongly timed, making Bandar Sri Begawan an unattractive alternative. Finally, low cost carriers in the region –especially AirAsia in neighbouring cities of Kota Kinabalu and Miri but also in Kuala Lumpur- slowly made Brunei national carrier’s own regional network moribund and its proposed fares rather expensive.
The airline’s pays now the price of its overrated ambitions. By appointing ex-Aer Lingus executive Dermot Mannion, the airline’s shareholders (in reality the Sultanate of Brunei) show finally that they understand the urgency of the situation. RBA is probably close to financial asphyxia, even its management will never admit it. But the decisions now taken by Dermot Mannion show that the situation at the airline has been seriously addressed. From August, RBA will terminate flights to Kuching in Sarawak and from October, it will end most of its intercontinental flights, abandoning Auckland, Brisbane, Perth as well as Ho Chi Minh City. From an intercontinental network which still had Frankfurt and Sydney a decade ago, RBA will be only left with three overseas destinations: London via Dubai and Melbourne. And nobody is now certain that those destinations will not be eliminated in a second phase of restructuring.
Meanwhile, Bandar Sri Begawan could be turned into the missing international gateway to Borneo Island and even to neighbouring Celebes and Mindanao Islands… Opening new routes in a circle of up to three or four hours around Brunei, offering a more competitive fare structure matching low cost airlines could dramatically change RBA destiny. A good example to take inspiration from is Singapore-based Silk Air, Singapore Airlines’ regional subsidiary. The carrier managed to grow its traffic volume despite low cost competition by offering a simplified service without compromising on high quality for but passengers. RBA Management’s announcement this week certainly marks the end of a dream… but probably also of an increasingly frightening nightmare.
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Really a case of water finding it's natural level.
The airline was started as a small regional carrier, with two B737s. The addition of its' first B757 a few years later was probably a prudent move at the time, in order to operate to a small number of more distant destinations.
However, notwithstanding the above, the most negative factor in the airline's ability to turn a profit has always been the country's policy of job creation and zero unemployment.
RBA has a total employee count of around 24,000. A ridiculous number when one considers the number of aircraft. For every secretary performing a task, there are another two women, backing the task with cardboard files.
The employee number is similar to SIA, who actually need this number to operate over 100 aircraft.
Don't believe the 'Flight International' world airline figure of 4,500 staff. If this was the true figure, the airline might have had a chance of standing on its' own two feet, albeit not too profitably due to the load and yield factors.
The airline was started as a small regional carrier, with two B737s. The addition of its' first B757 a few years later was probably a prudent move at the time, in order to operate to a small number of more distant destinations.
However, notwithstanding the above, the most negative factor in the airline's ability to turn a profit has always been the country's policy of job creation and zero unemployment.
RBA has a total employee count of around 24,000. A ridiculous number when one considers the number of aircraft. For every secretary performing a task, there are another two women, backing the task with cardboard files.
The employee number is similar to SIA, who actually need this number to operate over 100 aircraft.
Don't believe the 'Flight International' world airline figure of 4,500 staff. If this was the true figure, the airline might have had a chance of standing on its' own two feet, albeit not too profitably due to the load and yield factors.
Last edited by 777boeings; 26th Jun 2011 at 11:16. Reason: incorrect word
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The senior English line trainers have had their snouts in the RBA trough for years, pick of the destinations, top pay increment, holidays when they wanted them.
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Turnbuckle:
I will decide who gets their snouts in my trough. Let me make the following absloutely clear:
1) None of these decisions have yet to be approved by me. In the brief window between me (and my close associates) completing any necessary Airbus courses (abbreviated as time may be of the essence here) and my (our) B787 coversions ,I will have to personally checked (not check) any proposed plans by the board. Dermot must remember who makes ALL the decisions here.
2) I will not tolerate any other employee abusing their position whether it is in relation to training courses, rebate travel, positioning or the power invested in them by their posiition or any 'relevant authorities'.
3) Lets stay calm at this difficult time. This is no time to Flaps (not flap), rest assured I will do all I can to ensure my position is secure.
4) As always I am always willing to reject any ideas you may have for helping improve the bottom line, or the airline operation generally, and secure your jobs.
4) Finally if you are unfortunate enough not to be me and find yourself 'seeking your fortune elsewhere' feel free to drop by and tell me what a splendid job I have done in helping the company to the position it now enjoys. Feel free to use the word 'indispensible' as often as you like.
Yours, as always on ' Leave and Duty Travel',
Dud.
Piggies
1) None of these decisions have yet to be approved by me. In the brief window between me (and my close associates) completing any necessary Airbus courses (abbreviated as time may be of the essence here) and my (our) B787 coversions ,I will have to personally checked (not check) any proposed plans by the board. Dermot must remember who makes ALL the decisions here.
2) I will not tolerate any other employee abusing their position whether it is in relation to training courses, rebate travel, positioning or the power invested in them by their posiition or any 'relevant authorities'.
3) Lets stay calm at this difficult time. This is no time to Flaps (not flap), rest assured I will do all I can to ensure my position is secure.
4) As always I am always willing to reject any ideas you may have for helping improve the bottom line, or the airline operation generally, and secure your jobs.
4) Finally if you are unfortunate enough not to be me and find yourself 'seeking your fortune elsewhere' feel free to drop by and tell me what a splendid job I have done in helping the company to the position it now enjoys. Feel free to use the word 'indispensible' as often as you like.
Yours, as always on ' Leave and Duty Travel',
Dud.
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Adversity will always expose the true character of the individual.
Well done boys....just keep on exposing, in an anonymous forum, your true colours.
Just a tad embarrassing for the rest of us here, considering how many people will be following this sorry story, on a professional forum.
Any chance of some solidarity in difficult times
Well done boys....just keep on exposing, in an anonymous forum, your true colours.
Just a tad embarrassing for the rest of us here, considering how many people will be following this sorry story, on a professional forum.
Any chance of some solidarity in difficult times
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Any chance of some solidarity in difficult times
Isn't it odd how the first people to demand solidarity are the one's who didn't know what the word meant until a few days ago.
No insult intended towards the previous genuine poster - we all know who we are talking about.
Last edited by flyingtoothpick; 28th Jun 2011 at 01:51.
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unless everyone is terminated in one fell swoop it is quite probable the expat contracts simply won't get renewed.
this is how other operators did things, so rba is likely to follow that path.
so you're looking at your contract, and in times gone by it would be renewed november, or maybe april; whatever month, it is all the same.
start dates for pilots are always varied, so the non-renewal/termination will proably vary...you get the drift?
i've heard a mate there in rba say 'well, we're on a lower base pay and are experienced captains so they'll keep us until last'...
that's wishful thinking.
here's the thing: while there are jobs out there and you have a job, get out while you can before you are pushed.
go now.
that you didn't see this as being painted very clearly on the wall of truth sometime ago is immaterial.
the paint is now dry, and the message loud and clear for those with eyes open and ears pinned back.
hope springs eternal, true, but hoping for a savior (his majesty) to keep the airline and your job afloat can not be relied upon.
good luck, pilgrims.
this is how other operators did things, so rba is likely to follow that path.
so you're looking at your contract, and in times gone by it would be renewed november, or maybe april; whatever month, it is all the same.
start dates for pilots are always varied, so the non-renewal/termination will proably vary...you get the drift?
i've heard a mate there in rba say 'well, we're on a lower base pay and are experienced captains so they'll keep us until last'...
that's wishful thinking.
here's the thing: while there are jobs out there and you have a job, get out while you can before you are pushed.
go now.
that you didn't see this as being painted very clearly on the wall of truth sometime ago is immaterial.
the paint is now dry, and the message loud and clear for those with eyes open and ears pinned back.
hope springs eternal, true, but hoping for a savior (his majesty) to keep the airline and your job afloat can not be relied upon.
good luck, pilgrims.
