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OV Sacks Tero Taskila, Appoints Jan Palmer  
User currently offlinesmws From Estonia, joined Jun 2012, 66 posts, RR: 0
Posted (2 years 1 month 2 weeks 4 days 7 hours ago) and read 3034 times:

Tero Taskila has been sacked as the CEO of Estonian Air.

Jan Palmer has been appointed in his place: http://se.linkedin.com/pub/jan-palmer/7/53/ba0

While I wish Palmer all the best in turning things around at OV, I remain rather pessimistic. Will have to wait and see what his "vision" for OV will be.

Source (in Estonian): http://www.e24.ee/1024500/riik-vallandas-estonian-airi-juhi

44 replies: All unread, showing first 25:
 
User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 1, posted (2 years 1 month 2 weeks 4 days 6 hours ago) and read 3001 times:

What I read from Estonian media, the new strategy is stop transfer traffic via TLL with immediate effect and develop traffic on "point to point" routes from/to Estonia. That is the strategy what was before 2011. But it means, that they should reduce overall traffic numbers.

User currently offlineVasu From United Kingdom, joined Apr 2005, 3975 posts, RR: 0
Reply 2, posted (2 years 1 month 2 weeks 4 days 5 hours ago) and read 2933 times:

Quoting smbukas (Reply 1):

Why would they do this? I would have thought that transfer traffic could boost passenger numbers significantly...


User currently offlinesmws From Estonia, joined Jun 2012, 66 posts, RR: 0
Reply 3, posted (2 years 1 month 2 weeks 4 days 5 hours ago) and read 2913 times:

Quoting Vasu (Reply 2):
Why would they do this? I would have thought that transfer traffic could boost passenger numbers significantly...

The boost to passenger numbers was indeed considerable, but most routes still operate with loss. This business model was deemed as a failure by the major shareholder (the state), and therefore Taskila and his model had to go. Also, the Minister of Economic Affairs and Communications Juhan Parts was under significant public pressure to do something with the failing company.


User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 4, posted (2 years 1 month 2 weeks 4 days 5 hours ago) and read 2890 times:

Quoting Vasu (Reply 2):
Why would they do this? I would have thought that transfer traffic could boost passenger numbers significantly...

And it already did. Estonian Air boosted number of passengers and routes. But with this model they loose so much money. If you want to transfer passengers from, let's say, Helsinki to Amsterdam you have to beat all direct and in-direct options. All premium passengers further fly direct and all the transfer traffic you can win only on price. That's the experience both from airBaltic and Estonian Air.


User currently offlinetraveler_7 From Estonia, joined May 2000, 540 posts, RR: 0
Reply 5, posted (2 years 1 month 2 weeks 4 days 4 hours ago) and read 2837 times:

There were rumors that some "transfer" routs were working pretty well like St.Petersburg- Tallinn- Tbilisy. But not sure if those routs have generated any profit.

rRegards,
Sven


User currently offlinesmws From Estonia, joined Jun 2012, 66 posts, RR: 0
Reply 6, posted (2 years 1 month 2 weeks 4 days 3 hours ago) and read 2783 times:

Some new information coming in.

OV is closing routes to Tartu, Helsinki and Joensuu.

Routes to Stockholm, Copenhagen, Oslo, Brussels, Moscow and Saint Petersburg will not be closed in all likelihood.

The Tbilisi route was stopped on the 15th of October, initially only for the autumn-winter season.

Riga and Munich will also probably be closed as good service is provided by other carriers.

In addition, London OV will fly to LCY starting from Spring 2013.

Source (in Estonian): http://www.e24.ee/1024884/estonian-a...r-hakkab-liine-sulgema-ja-koondama


User currently offlineOV735 From Estonia, joined Jan 2004, 918 posts, RR: 3
Reply 7, posted (2 years 1 month 2 weeks 4 days 3 hours ago) and read 2756 times:

Quoting smws (Reply 6):
Riga and Munich will also probably be closed as good service is provided by other carriers.

In addition, London OV will fly to LCY starting from Spring 2013.

OV currently do not operate to Munich, so they cannot close that one down.

According to Delfi, the planned routes to LCY and GOT are both axed. With LCY, it's probably a good idea as the infrastructure there makes the return flight payload-restricted, which in turn results in an inherent difficulty in operating profitably.


User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 8, posted (2 years 1 month 2 weeks 4 days 2 hours ago) and read 2676 times:

Chairman and new CEO also said, that the vision is to go to 9 to 11 routes airline flying from TLL.

6 "safe" routes to survive - ARN, OSL, CPH (all codeshare SK), BRU (codeshare SN), LED (codeshare FV) and SVO (codeshare SU).

Other routes to be decided later. IMHO, AMS (codeshare KLM), VNO (on turboprops), VIE and KBP should remain all with reduced frequencies for point to point purposes.


User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 9, posted (2 years 1 month 2 weeks 4 days 2 hours ago) and read 2669 times:

Also it will be interesting to see what the new fleet strategy should be.

AFAIK, they are in conflict with Bombardier to return 3 CRJ900 to manufacturer. 4 E170 are on lease from Finnair and some more Embraers to come next summer, and some new orders from Embraer to deliver in 2014-2016.

With 9-11 routes it looks 4 regional jets and 2 turboprops are enough for them.


User currently offlineju068 From Vanuatu, joined Aug 2009, 2771 posts, RR: 6
Reply 10, posted (2 years 1 month 2 weeks 4 days 2 hours ago) and read 2662 times:

Wasn't the new Estonian CEO sacked just recently by the Latvian government for not running RIX well?

User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 11, posted (2 years 1 month 2 weeks 4 days 1 hour ago) and read 2643 times:

Quoting ju068 (Reply 10):
Wasn't the new Estonian CEO sacked just recently by the Latvian government for not running RIX well?

No.

"Old" Estonian CEO Taskila was ex airBaltic Chief Commercial Officer.
Government sacked RIX management recently (Latvian persons).
"New" Estonian CEO is Swedish person, ex-CEO Skyways and Cimber Sterling (but he left those companies before they were sold to Ukrainian owners and later bankrupted).


User currently offlineju068 From Vanuatu, joined Aug 2009, 2771 posts, RR: 6
Reply 12, posted (2 years 1 month 2 weeks 4 days 1 hour ago) and read 2633 times:

Quoting smbukas (Reply 11):
Jan Palmer

Thanks for that, don't know why I confused them.


User currently offlinetraveler_7 From Estonia, joined May 2000, 540 posts, RR: 0
Reply 13, posted (2 years 1 month 2 weeks 3 days 22 hours ago) and read 2499 times:

Quoting smbukas (Reply 8):
Other routes to be decided later. IMHO, AMS (codeshare KLM), VNO (on turboprops), VIE and KBP should remain all with reduced frequencies for point to point purposes.

OV operate VIE just few times a week so do not know if they would be able to reduce it even more/ is it reasonable to reduce even more?

Quoting OV735 (Reply 7):
According to Delfi, the planned routes to LCY and GOT are both axed. With LCY, it's probably a good idea as the infrastructure there makes the return flight payload-restricted, which in turn results in an inherent difficulty in operating profitably.

If flights to LCY will allow connection to/from SVO, LED and perhaps KBP then line may be profitable.
Anyway London is a destination where point to point loads may generate profit so hope OV will fly to some London airport.

Quoting smbukas (Reply 9):
AFAIK, they are in conflict with Bombardier to return 3 CRJ900 to manufacturer. 4 E170 are on lease from Finnair and some more Embraers to come next summer, and some new orders from Embraer to deliver in 2014-2016.

With 9-11 routes it looks 4 regional jets and 2 turboprops are enough for them.

Wonder what will happen with ordered E195? They may be used for charter flights as well.
As to turboprops, should not they be they retired soon?


User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 14, posted (2 years 1 month 2 weeks 3 days 18 hours ago) and read 2381 times:

Quoting traveler_7 (Reply 13):
OV operate VIE just few times a week so do not know if they would be able to reduce it even more/ is it reasonable to reduce even more?

I have did not notice they reduce VIE flights. In the begining of summer 2012 there was ±12x weekly flights TLL-VIE.

Quoting traveler_7 (Reply 13):
Anyway London is a destination where point to point loads may generate profit so hope OV will fly to some London airport.

London is good route on paper, but you cannot win competition in such price sensitive markets in Eastern Europe. easyJet flies LGW-TLL and Ryanair operate LTN-TLL. It is already big capacity there.


User currently offlinetraveler_7 From Estonia, joined May 2000, 540 posts, RR: 0
Reply 15, posted (2 years 1 month 2 weeks 3 days 17 hours ago) and read 2304 times:

Quoting smbukas (Reply 14):
I have did not notice they reduce VIE flights. In the begining of summer 2012 there was ±12x weekly flights TLL-VIE.

For the winter season it is just 5 flights a week

Quoting smbukas (Reply 14):
London is good route on paper, but you cannot win competition in such price sensitive markets in Eastern Europe. easyJet flies LGW-TLL and Ryanair operate LTN-TLL. It is already big capacity there.


Ryanair flies 3 times a week and EasyJet 4 times a week. Flights are operated on Mondays, Wednesdays, Fridays and EasyJet on Sundays, even more usually flight depart from London VERY EARLY in the morning. As you may see at least 3 days left empty and there is no evening flights at all. So there are space to compete. Another question those possibilities may generate some profit... .


User currently offlineCRJ900 From Norway, joined Jun 2004, 2234 posts, RR: 1
Reply 16, posted (2 years 1 month 2 weeks 3 days 17 hours ago) and read 2284 times:
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Quoting smbukas (Reply 14):
In the begining of summer 2012 there was ±12x weekly flights TLL-VIE

How come there is so much demand for flights TLL-VIE? Business ties?

Will the CRJ900s be returned to Bombardier or another leasing company?



Come, fly the prevailing winds with me
User currently offlineOV735 From Estonia, joined Jan 2004, 918 posts, RR: 3
Reply 17, posted (2 years 1 month 2 weeks 3 days 16 hours ago) and read 2234 times:

Quoting CRJ900 (Reply 16):
How come there is so much demand for flights TLL-VIE? Business ties?

OV's 'new' strategy was to provide connections via TLL. Tight schedules to Western European destinations were supposed to attract connecting traffic from VNO, RIX, LED, HEL and some small Finnish towns.

Quoting CRJ900 (Reply 16):
Will the CRJ900s be returned to Bombardier or another leasing company?

The CRJs are owned by Estonian Air (or rather an off-shore affiliate, as uncovered by Estonian press recently) and therefore cannot be returned. Basically, the way I see it, there are three options: a) sell them b) if that doesn't work, lease them out and c) keep them. They are good aircraft, and from what I hear, more economical than the E170.


User currently offlineMHG From Germany, joined Dec 2004, 796 posts, RR: 1
Reply 18, posted (2 years 1 month 2 weeks 3 days 7 hours ago) and read 2112 times:

Quoting traveler_7 (Reply 15):
Ryanair flies 3 times a week and EasyJet 4 times a week. Flights are operated on Mondays, Wednesdays, Fridays and EasyJet on Sundays, even more usually flight depart from London VERY EARLY in the morning. As you may see at least 3 days left empty and there is no evening flights at all. So there are space to compete. Another question those possibilities may generate some profit... .

That´s a valid point !
Also, don´t forget that business travellers want flexibility. Maybe that´s where OV might step in.

Remember that OPS into LCY are not only restricted (aircraft size/range/slots) but also very expensive.
LCY charges very high rates for parking/landing/etc. compared to the other airports serving London.

A possible airport to serve London point-to-point may be London Southend (SEN) as there are no slot restrictions and the recently extended runway would not lead to any payload/range restrictions to EMB-170 or CRJ-900.
And finally, SEN would probably be the "cheapest" airport to serve in the London area. For Passengers it´s ok, too since the train station is just outside the terminal with frequent trains to London (travel time is less than an hour)



I miss the sound of rolls royce darts and speys
User currently offlinetraveler_7 From Estonia, joined May 2000, 540 posts, RR: 0
Reply 19, posted (2 years 1 month 2 weeks 3 days 5 hours ago) and read 2060 times:

Quoting MHG (Reply 18):
Also, don´t forget that business travellers want flexibility. Maybe that´s where OV might step in.

Unfortunately it looks like that at least for some future London would not be served by OV   . On the other side it allows competitors to increase frequencies.

Quoting OV735 (Reply 17):
c) keep them. They are good aircraft, and from what I hear, more economical than the E170.

Just three CRJs is not enough to serve even 11 destinations with reasonable frequencies. Also it is not reasonable to keep two types of jets in such a small fleet. One possibility is to get read of CRJ's and operate E170s until E175/195 would arrive. If I am not mistaken while E170 is less economical than CRJ900, E175/195 are more economical.


User currently offlineteme82 From Finland, joined Mar 2007, 1634 posts, RR: 0
Reply 20, posted (2 years 1 month 2 weeks 3 days 5 hours ago) and read 2047 times:
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OV's issue is that HEL is too darn close to TLL. Fact is that a lot of people takes the boat to Helsinki and from there they go the HEL and take direct flights to the world. So in the end OV will bleed money and will go belly up.


Flying high and low
User currently offlineTreg From Estonia, joined Oct 2001, 538 posts, RR: 0
Reply 21, posted (2 years 1 month 2 weeks 3 days 4 hours ago) and read 2021 times:

Quoting teme82 (Reply 20):
OV's issue is that HEL is too darn close to TLL. Fact is that a lot of people takes the boat to Helsinki and from there they go the HEL and take direct flights to the world. So in the end OV will bleed money and will go belly up.

Actually, the Finnair prices starting from TLL are not much different from the HEL prices. Thus, many people (incl. me) are using HEL rather frequently. There are 6 daily flights from TLL to HEL and back giving you very good connectivity via HEL.


User currently offlinesmbukas From Lithuania, joined Feb 2009, 220 posts, RR: 0
Reply 22, posted (2 years 1 month 2 weeks 3 days 4 hours ago) and read 2007 times:

Quoting traveler_7 (Reply 19):
Just three CRJs is not enough to serve even 11 destinations with reasonable frequencies. Also it is not reasonable to keep two types of jets in such a small fleet. One possibility is to get read of CRJ's and operate E170s until E175/195 would arrive. If I am not mistaken while E170 is less economical than CRJ900, E175/195 are more economical.

I think, this that can be decided with network strategy too. AFAIK, for Estonian, CRJ900 are more economical on shorter routes (TLL-CPH, TLL-ARN), but E170 wins on longer routes (LGW, CDG, TBS). As I see, new strategy is more based on serving short routes (except BRU and AMS which are a bit longer), so CRJ900 might be better fit. And what Estonian press write, CRJ900 are "owned" so to release them means to find a new customer for them what can be a challenge.

Anyhow, I think they will definitely need props for serving VNO, LED and keep high frequency on ARN.

Quoting CRJ900 (Reply 16):
How come there is so much demand for flights TLL-VIE? Business ties?

They got codeshare from OS for Estonian passengers and VIE is popular flow from Russia. So I think they also believed in big flows for connecting passengers from LED and SVO to VIE.


User currently offlineLarshjort From Denmark, joined Dec 2007, 1524 posts, RR: 0
Reply 23, posted (2 years 1 month 2 weeks 3 days 4 hours ago) and read 1988 times:

Quoting smbukas (Reply 11):
"New" Estonian CEO is Swedish person, ex-CEO Skyways and Cimber Sterling (but he left those companies before they were sold to Ukrainian owners and later bankrupted).

He arrived at Cimber Sterling after the Ukranian owners bought the company, and he was the CEO until the bankcruptcy.

/Lars



139, 306, 319, 320, 321, 332, 34A, AN2, AT4, AT5, AT7, 733, 735, 73G, 738, 739, 146, AR1, BH2, CN1, CR2, DH1, DH3, DH4,
User currently offlinedebonair From Germany, joined Jan 2004, 2468 posts, RR: 4
Reply 24, posted (2 years 1 month 2 weeks 3 days 4 hours ago) and read 1986 times:

Quoting smbukas (Reply 1):
What I read from Estonian media, the new strategy is stop transfer traffic via TLL with immediate effect and develop traffic on "point to point" routes from/to Estonia

I never understood, why OV was ERA SILVER winner 2012:

Silver winner Estonian Air was considered by the judges to be an outstanding example of a successful link between an airport and a regional carrier, using a hub and spoke model which has enabled the airline to attract a considerable amount of transfer traffic leading to impressive growth. The carrier's clear targets, innovative approach and focus on social media were also identified as major achievements.

source:http://www.eraa.org/newsroom/news-releases/953-wideroe-wins-airline-of-the-year-gold-award


25 traveler_7 : Hope SK may may buy them from OV? Initially it was a part of big SK order if I am not mistaken. Anyway 3 aircraft is just not enough. True, as Estoni
26 smbukas : I remember fun coverage in Lithuanian press also - Vilnius basketball team "Lietuvos rytas" was flying to play Euroleague game to St.Peteresburg via
27 CRJ900 : I thought it was the other way around? A SAS CRJ900 Captain told me the CR9 has great economics on flights longer than 90 minutes and less economical
28 Post contains links ju068 : Well I know this is off topic but airBaltic has been mentioned before. Good news in neighbouring Latvia... http://www.baltic-course.com/eng/good_for_b
29 Post contains links traveler_7 : According to E24 government will not allow OV to go bankrupt. Sorry but Link is in Estonian only http://www.e24.ee/1026276/ansip-riik...airi-mitte-min
30 OV735 : Because of the reasons listed in your quote. Had the ladies and gents at ERAA known that it wouldn't work out, I too doubt they would have presented
31 Post contains links jfidler : In some ways, it's worse than that. If you include Estonian Air Regional (and I'm not quite sure why they made a separate company) and their 3 planes
32 traveler_7 : B737 is left from the "pre CRJ" period. As far as I remember it should be phased out soon. So just two types of jets and one turboprop. Personally I
33 shanxz : Tero and team had a solid plan, and it's a pity that the govt. didn't back them for long enough. It seems to be a short-sighted decision. When you try
34 OV735 : I agree that the plan should have been given more time to fold out. However, given that the loss over first three quarters was more than €20m (and
35 smws : Another sad part of the OV and Taskila "fiasco" was how the media and public reacted to his wages, so basically he and his plan were very unpopular f
36 vfw614 : Really shocking that they decided to replace the CR9s with Embraers without having a deal in place to properly dispose of them. That could really be a
37 OV735 : I believe initially when the Embraers rolled in, the CRJs were supposed to stay in the picture until the E175 deliveries in 2014, so they didn't real
38 smbukas : Estonian Air annouced further cuts: Estonian Air will stop flights to Joensuu, Helsinki, Jyväskylä and Tartu, and in 2013 will not start operations
39 HELyes : So all their routes to Finland get axed. They have tried the HEL service several times, sad too loose their pretty A340 again.
40 Post contains images teme82 : I didn't know that OV has A340's You must mean Saab 340?[Edited 2012-11-16 02:55:45]
41 Post contains links and images HELyes : Oops yes SAAB 340... OV colors would look good on big Buses too Hopefully OV make it through the stormy times, Estonian government says bankruptcy is
42 vfw614 : Interesting that they keep TRD which generally is a smallish market - is there a large Baltic expat community in the area, given that BT also flies to
43 smbukas : They are flying 2x weekly. Market from the Baltics to Norway is growing. Mostly due to people from the Baltics taking jobs in Norway (as the crisis h
44 Treg : This one puzzles me as well but according to various sources there are two reasons: 1) TRD is a gateway to the central and northern parts of Norway,
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