Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Openskies Put Expansion On Hold And Changes AOC!  
User currently offlineBALHRWWCC From , joined Dec 1969, posts, RR:
Posted (5 years 10 months 1 week 11 hours ago) and read 10185 times:

Have just found this posted on Pprunne. Sounds like an internal memo. Sounds like EC are being sensible and temporarily holding off on expansion



"As you will have realized yourselves, we are facing very difficult times. With the worldwide
crisis in the financial markets, and the resulting global economic slowdown as major
countries move towards recession, the airline industry is suffering the worst crisis in its
history, compounded by the erratic nature of oil prices. (Although they are now falling
sharply, many carriers have hedged at higher levels). The crisis is deeper, more
protracted, more fundamental than 9/11, the Gulf War or any of the previous shocks that
have rocked our industry. All airlines are suffering – including the long established full
service airlines – and more than 30 airlines have gone bust this year.
OpenSkies and L’Avion are of course also impacted – the cities of New York, Paris and
Amsterdam that we serve are deeply affected by the financial and economic maelstrom.
Our revenues are below target through a combination of lower volumes and yields, and as
a priority we must take actions to ensure we keep within our cash reserves.
We must build on our strengths: we have people who care; we have a great product which
is exactly right for the market at this time; we have a single aircraft type which simplifies
our operation; we are small and can move quickly to respond to changing market
conditions. We must really maintain our focus.
We have decided to delay expansion: we will operate with our existing four aircraft and
defer delivery of the fifth aircraft (previously planned to enter operation in March 2009)
until the economic environment improves. We will also engage in a battle to reduce our
costs, examining each and every cost area for savings. We will look to all of you to help
us with these challenges – as well as continuing to do your job, and to make sure we
delight each and every customer.
It is imperative that OpenSkies and L’Avion act as one company so we are best placed to
get through these difficult times and achieve our shared vision of long-term success in the
point to point premium travel market. With immediate effect, we will use both company
logos and names in any external or internal communications. We will also act as one
company in commercial and financial decisions. In particular, we will have a two-way
codeshare between OpenSkies and L’Avion from 18 November, so we can sell tickets
under either the A0 or EC code from any of our distribution points on any of our four
aircraft.
Operational integration requires a decision on which Airline Operating Certificate (AOC)
we maintain as we become one single airline. We have now taken the decision to operate
under a single French AOC, after very detailed and careful organisational, commercial,
operational and cost analysis.

Paris was chosen for two major reasons:
- It is a strategic point on our network (at least half of our routes are likely to originate from
Paris)
- We can reduce cost and complexity and improve communications between managers
and operational employees by focusing our headquarters and European operations in
Paris.
The timing for full integration of our two great little airlines will be driven by a number of
factors and may proceed more rapidly in some areas than others, but will be completed
with determination as quickly and effectively as possible."

http://www.pprune.org/rumours-news/3...630-openskies-goes-french-aoc.html

14 replies: All unread, jump to last
 
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17444 posts, RR: 46
Reply 1, posted (5 years 10 months 1 week 10 hours ago) and read 10162 times:

Sounds like they're discovering what Eos, Maxjet, L'Avion, and Silverjet found out....their business plan does not work.


E pur si muove -Galileo
User currently offlineBALHRWWCC From , joined Dec 1969, posts, RR:
Reply 2, posted (5 years 10 months 1 week 10 hours ago) and read 9997 times:



Quoting MaverickM11 (Reply 1):
Sounds like they're discovering what Eos, Maxjet, L'Avion, and Silverjet found out....their business plan does not work.

I think it could work......... The problem is they are offering two different products on three flights a day to NYC from ORY.

I think they should:

(1) Reconfigure the A0 aircraft to match EC's product. Or even EC should take out J and just operate a all premium economy product. Something that is lacking from AMS and PAR. This would appeal to companies who's employees usually travel in J and now need to cut costs. EC's Prem+ product is superior to any Premium Economy product out there. It offers space to work and a comfortable seat to rest in. They also should brand the new product under the one name.

(2) Cut the third ORY/NYC and operate both flights to JFK. They could change the schedule to have a say 9am and 8pm departure from ORY and a 8am (daylight flight) and a 6pm flight ex JFK.

(3) Aggresively market there routes... If they are gonna go out of business they might aswell go out fighting.

(4) Use the 4th aicraft to maintain the new NYC schedule above but also look at markets.

EC/A0 could operate LOS or ACC to AMS. They would make a killing with all the oil traffic. I have travelled to Ghana and Nigeria alot in this industry. They Nigerians and Ghanians will pay extra if they think they will get an enhanced service. Also there is a premium travel market there. BA can easily fill 14F/70J and 30W seats daily to LOS. AZ have also just downsized this route to a aircraft with out of date product on it. MXP/LOS or ACC would also work.

DXB from AMS would also be a good addition as the only competition is KL. They could even seek a codeshare with EK. This would give EK flights to AMS without having to use one of it's large aircraft and give EC/A0 a new market and a strong partner.


User currently offlineSketty222 From United Kingdom, joined Mar 2006, 1778 posts, RR: 3
Reply 3, posted (5 years 10 months 1 week 10 hours ago) and read 9969 times:

Just received an internal memo advising that EC are to cancel 28 flights between JFK-AMS between 04 November and 06 January. No pattern to the cancellations so pretty much random days throught the months.

What is noticeable though is the cancellation of flights 23/24/25/26 December.

Obviously passengers have the option to rebook on BA via LHR or receive a refund as well as fly with EC on a different day.
Hopefully the Xmas period passengers will be able to find availability.



There's flying and then there's flying
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17444 posts, RR: 46
Reply 4, posted (5 years 10 months 1 week 7 hours ago) and read 9534 times:



Quoting BALHRWWCC (Reply 2):
The problem is they are offering two different products on three flights a day to NYC from ORY.

I'd say their biggest problem is that they don't have the schedule or network to compete with any carrier that has a major operation in NYC or PAR (or AMS, etc), so they can only compete on price, which means they'll rarely get the premium that pays for a low density 757.



E pur si muove -Galileo
User currently offlineThirteenRight From United States of America, joined Jun 2007, 340 posts, RR: 0
Reply 5, posted (5 years 10 months 6 days 21 hours ago) and read 7420 times:

BA should have bought Eos, converted Eos into a BA franchise (a la Comair), changed the product to a proper BA 2 or 3 class international service, and started service to PAR, AMS, and some European cities that can't handle widebody service (maybe replacing the lost MAN service, service to NCL, BHX, etc) while codesharing the heck out of it with AA and O/W for feed.

Who wants to fly OpenSkies? The brand has no value, no meaning. BA especially to Americans who (now dont flame me) swoon at any British accent they hear (myself included), stands for a lot more.

BA really missed the boat with this.


User currently offlineANstar From United Kingdom, joined Nov 2003, 5193 posts, RR: 6
Reply 6, posted (5 years 10 months 6 days 21 hours ago) and read 7330 times:



Quoting MaverickM11 (Reply 5):
I'd say their biggest problem is that they don't have the schedule or network to compete with any carrier that has a major operation in NYC or PAR (or AMS, etc),

And the fact they are not part of Oneworld - so why should QF, AA etc frequent flyers fly them?


User currently offlineFlyingchoirboy From United States of America, joined Oct 2003, 281 posts, RR: 4
Reply 7, posted (5 years 10 months 6 days 18 hours ago) and read 7017 times:
Support Airliners.net - become a First Class Member!



Quoting ThirteenRight (Reply 6):
BA really missed the boat with this.

Ditto

Cheers,
Scott



Flyingchoirboy: He sings, he flies, and sometimes he does both at the same time.
User currently offlineMutu From United Kingdom, joined Mar 2006, 536 posts, RR: 0
Reply 8, posted (5 years 10 months 6 days 17 hours ago) and read 6738 times:



Quoting MaverickM11 (Reply 1):
Sounds like they're discovering what Eos, Maxjet, L'Avion, and Silverjet found out....their business plan does not work

Actually in the current economic climate I think you could find many arguments to suggest that NO carriers model actually works!


User currently offlineAIR MALTA From Malta, joined Sep 2001, 2499 posts, RR: 1
Reply 9, posted (5 years 10 months 6 days 16 hours ago) and read 6650 times:



Quoting ANstar (Reply 7):
And the fact they are not part of Oneworld - so why should QF, AA etc frequent flyers fly them?

I think OpenSkies should be an affiliate member of OneWorld and the flights better promoted by BA and operated as a BA franchise. I guess there are enough pax from PAR or AMS who travel to JFK through LHR who could switch to EC and it would be easier for them if flights are sold as BA.

DXB from AMS should be a good route cause there is no competition to KL on that route.



Next flights : BRU-ZRH-CAI (LX)/ BRU-FCO-TLV (AZ)
User currently offlineB747-4U3 From United Kingdom, joined Jan 2002, 990 posts, RR: 0
Reply 10, posted (5 years 10 months 6 days 15 hours ago) and read 6327 times:



Quoting MaverickM11 (Reply 1):
Sounds like they're discovering what Eos, Maxjet, L'Avion, and Silverjet found out....their business plan does not work.

I agree with you because of the following:

Quoting AIR MALTA (Reply 10):
I think OpenSkies should be an affiliate member of OneWorld and the flights better promoted by BA and operated as a BA franchise. I guess there are enough pax from PAR or AMS who travel to JFK through LHR who could switch to EC and it would be easier for them if flights are sold as BA.

I think that OpenSkies has the ability to be a highly successful company. But, to be successful they need to be more integrated with BA and OneWorld.

When BA initially announced Project Lauren, I thought that the company would be much more integrated with BA. I assumed that OpenSkies would allow loyal BA passengers in Europe to bypass LHR whilst still enjoying the benefits of flying with British Airways.

Unfortunately,it seems that OpenSkies is being run like Eos or Maxjet with a BA flag on the tail. There is very little integration with BA.

It's a shame really, as of all of the business only airlines, I think this one really does have the potential to become a major player!


User currently offlineLAXintl From United States of America, joined May 2000, 25165 posts, RR: 48
Reply 11, posted (5 years 10 months 6 days 15 hours ago) and read 6274 times:



Quoting BALHRWWCC (Reply 2):
The problem is they are offering two different products on three flights a day to NYC from ORY.

I think they should:

Some valid points.

One additional point in my opinion they must tackle is the issue of dual names they still are using. They need to ditch one - L'avion in my opinion.

Instead from the memo it sounds like they will still keep both names just display both jointly.

Both L'avion and Openskies are too small and trading under two names (and product like you mention) this mudies the water confusing people even more. Outside of us here on a.net I doubt anyone associates the carriers together and even if they did its a odd relationship it seems.

Business 101 tells you that if airlines merge they try to get to single joint brand and product at the soonest opportunity -- not drag out differences.



From the desert to the sea, to all of Southern California
User currently offlineRichardw From United Kingdom, joined May 2001, 3749 posts, RR: 0
Reply 12, posted (5 years 10 months 6 days 14 hours ago) and read 6238 times:

What is their USP in competition with AF/KL?

User currently offlineANstar From United Kingdom, joined Nov 2003, 5193 posts, RR: 6
Reply 13, posted (5 years 10 months 6 days 5 hours ago) and read 5322 times:



Quoting B747-4U3 (Reply 11):
I think that OpenSkies has the ability to be a highly successful company. But, to be successful they need to be more integrated with BA and OneWorld.



Quoting B747-4U3 (Reply 11):
Unfortunately,it seems that OpenSkies is being run like Eos or Maxjet with a BA flag on the tail. There is very little integration with BA.

Exactly - The model seems to work ok for Lufthansa, so it should work for BA. But it needs to be integrated into BA.... not a stand alone.


User currently offlineLHR777 From , joined Dec 1969, posts, RR:
Reply 14, posted (5 years 10 months 6 days 5 hours ago) and read 5198 times:

I just read this on the Openskies website -

Quote:

By the end of 2009, we plan to be operating six proven, fuel-efficient Boeing 757 aircraft, providing non-stop flights from Continental European cities such as Paris, Brussels, Milan, Frankfurt and Amsterdam to New York.

The bold emphasis is mine.

The point is this - there's already an airline, with a proven product, operating fuel-efficient 757 and 767 aircraft, to all of those cities, with a massive onward network out of their EWR hub, and onward connections from Europe on AF/KL/AZ and other carriers.

So what does Openavionskies really bring to the market that's new?


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
AN Administrators Force ANstaff To Put Bid On Hold posted Thu Nov 8 2001 10:15:30 by United Airline
New Jamaica Govt. Wants JM/Virgin Deal Put On Hold posted Wed Oct 10 2007 05:56:12 by JAM747
CO To Put ERJ's On EWR-MSY (and Other Info) posted Fri Nov 18 2005 00:26:36 by MSYtristar
US Changes Policy On Pets And Minors posted Wed Aug 17 2005 21:33:16 by Kearnet
Varig And Tam Merger On Hold! posted Wed Feb 11 2004 06:27:11 by TBCITDG
MAS' Additional Rights Into India Put On Hold posted Tue Apr 22 2003 04:16:06 by OdiE
Denver Airport Westin Hotel Put On Hold..... posted Sat Feb 22 2003 20:25:32 by BA
Update 4 U All On Jetsgo And Expansion Plans posted Sun Aug 18 2002 05:44:31 by Layitontheline
DTW Expansion Official On Hold posted Sun Dec 2 2001 02:44:41 by Zeus01
SWA's New Interiors/paint Put On Hold? posted Mon Nov 19 2001 00:25:30 by SJCguy