Trinxat From Germany, joined Nov 2006, 176 posts, RR: 0 Posted (5 years 5 months 2 weeks 4 days 5 hours ago) and read 2703 times:
This article is not brand new but provides a good summary of all the recent activity around the sale of JK to a corporation of catalan investors, after the former owner SAS had put the airline on sale more than a year ago.
The lack of interest from other companies / investors had created some concerns about the future of he company, aggravated by the fatal tragedy in MAD last summer.
Fortunately this seems to be a good way out of this difficult year for JK, and opens new hopes and possibilities as they will base their future strategy and expansion from BCN brand new T1 to be available next summer 09.
The first change will be to move the administrative headquarters to BCN, although the staff will remain based in PMI, so limited impact for people is expected out of this operation.
However the new owners seem to be a peculiar group, a combination of private entrepreneurs, public entities and consortiums and some trade organisations and chambers of commerce, with no experience in the airline business. SAS will however keep 20% of the company and will be the business partner. New president still to be appointed.
In spite of this fragile combination of interests, seems to be good news in the end to see that there is still an interest to invest in the airline business, and that JK has been eventually saved from unavoidable extinction
R2rho From Germany, joined Feb 2007, 2581 posts, RR: 1
Reply 1, posted (5 years 5 months 2 weeks 2 days 7 hours ago) and read 2274 times:
JK has a very tough way forward, but considering that a few months ago I was expecting this airline to eventually disappear (due to their high losses, the MD-82 crash, lack of interest from SAS, lack of buyers for the airline, economic crisis, etc...), the interest in recovering the airline that these investors show is certainly good news for them.
It makes sense that the second largest Spanish airline establishes its base in Spain's second most important hub. MAD is dominated by IB, and PMI has too much low-cost tourist traffic and too little business traffic. BCN can definitely provide for lots of O&D as well as business traffic. But it won't be easy for JK, as there is heavy competition from LCC's there.
I think the way forward is to maximize the potential for codeshares within Star Alliance, and particularly SK and LH, for intercontinental connections, as JK does not offer any themselves. This would help set them apart from LCC's and attract business traffic, because if JK plays the LCC game they will surely lose. Then of course there is the issue of fleet renewal and rationalization. Once all that is done, and if JK still exists in 3-4 years, maybe they could start offering intercontinental routes themselves - BCN can surely support a few.
Bullpitt From Spain, joined Mar 2004, 871 posts, RR: 8
Reply 2, posted (5 years 5 months 2 weeks 2 days 6 hours ago) and read 2187 times:
I think JK will disappear in 2 or 3 years if nothing changes. I have no faith in the new buyers (specially the political buyers) Some of these investors have been made to buy in, by the Catalan Government but we'll see what happens when they need to feed hard cash to the airline to cover the losses.
The Catalan Government insists on turning BCN into MAD but hell will freeze over before that happens, so only time will tell how long before they abandon JK to its fate.
These are my principles but if you don't like them I have others
Trinxat From Germany, joined Nov 2006, 176 posts, RR: 0
Reply 3, posted (5 years 5 months 2 weeks 1 day 22 hours ago) and read 1955 times:
Quoting R2rho (Reply 1): I think the way forward is to maximize the potential for codeshares within Star Alliance
Quoting R2rho (Reply 1): BCN can definitely provide for lots of O&D as well as business traffic
Fully agree, in the end BCN is not doing it so bad as a destination having in mind that there is barely any interest to promote it as a connecting hub. Still all intercontinental routes are run by foreign companies (SQ, US, CO, DL) so it would be good that someone covers the gap, at least for the star alliance members. Passenger traffic last year was around 30millions IIRC
LH has mentioned several times that they want to challenge IB business in Latin America, so maybe the new terminal in BCN offers them a good chance, via themselves or their partner JK (provided they help them financially to get long range material)