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Any News About VG Airlines?  
User currently offlineSndp From Belgium, joined Feb 2000, 553 posts, RR: 2
Posted (12 years 20 hours ago) and read 1960 times:

I have been abroad some time so I may have missed news about how VG Airlines is performing. Is there anybody who has more news about their load factors and so on? Thanks already.

sndp

14 replies: All unread, jump to last
 
User currently offlineEstablished02 From Belgium, joined Jan 2002, 536 posts, RR: 2
Reply 1, posted (12 years 19 hours ago) and read 1939 times:

Hello Sndp,

You can find some info about VG's load factors in a recent article of La Libre Belgique (26/07/02).

Le ciel belge croit en sa bonne étoile
http://www.lalibre.be/article.phtml?id=3&subid=85&art_id=72998

Regards,

Established02


User currently offlineSndp From Belgium, joined Feb 2000, 553 posts, RR: 2
Reply 2, posted (12 years 18 hours ago) and read 1910 times:

Thanks very much
sndp


User currently offlineSAS23 From , joined Dec 1969, posts, RR:
Reply 3, posted (12 years 18 hours ago) and read 1903 times:

Hmmm, with loadsfactors of 40% on LAX (most of which would be coming from Armenian Airlines, I assume); and only 50% during the peak summer season on the JFK route they are not going to be around a lot longer!! And as for their plans to break even within 8 or 9 months ... what a load of kak!

User currently offlineA330 From Belgium, joined May 1999, 649 posts, RR: 7
Reply 4, posted (12 years 17 hours ago) and read 1881 times:

No, SAS23,

All airlines in their start-up period have the same problem, and let me assure you that these loadfactors have been calculated in the business-plan.

From october, flights to Boston will be reduced to 3 or 4 a week, but this will give the uportunity to open the Miami route.
In summer, a 4th Airbus will probably join the fleet.
Meanwhile, traffic numbers are getting better all the time, and cargo is a succes, and that is where the money is coming from at the moment.

Passengers are VERY happy now with the service, in Emilie as in Michael class!



Shiek!
User currently offlineEstablished02 From Belgium, joined Jan 2002, 536 posts, RR: 2
Reply 5, posted (12 years 17 hours ago) and read 1872 times:

> All airlines in their start-up period have the same problem

A330, what other airlines did you have in mind when stating that they face(d) the same problem (as IV) during their start-up period? SNBA, LX, others,...?


User currently offlineA330 From Belgium, joined May 1999, 649 posts, RR: 7
Reply 6, posted (12 years 12 hours ago) and read 1808 times:

Almost all new airlines and airlines opening new routes will run at a considerable loss for their new product in the first few months of operation.
That is why so many airlines fail during their first year, they did not forsee to make losses, and capital was weak.
VG has a sound investor though who is now seeing improvement in the airline...
VG needs to earn their passengers, and is working hard now to convince these pax. to fly the Belgian flag carrier!!



Shiek!
User currently offlineSAS23 From , joined Dec 1969, posts, RR:
Reply 7, posted (12 years 11 hours ago) and read 1782 times:

Sure, A330, airlines that (correctly) calculate that they will have low loadfactors tend not to forecast making profits in within a year, though ... generally it takes a year or two, especially on long haul, to break even.

This is the peak season, with lots of tourist traffic - off peak, loads will drop by at least 50%. If in peak season they are struggling to reach 50%, what will happen in winter? Also, if you're reducing utilisation of your aircraft, then your overall fixed unit costs increase ... which makes the situation even worse.

Don't forget CTB tried LAX and MIA and they were a disaster for them. What makes IV think they can be any better?

With cargo yields on transatlantic services being the lowest for two decades, I shudder to think what your pax yields are like if you say that's where the money is coming from! Big grin Big grin Big grin


User currently offlineFlying Belgian From Belgium, joined Jun 2001, 2390 posts, RR: 9
Reply 8, posted (12 years 11 hours ago) and read 1769 times:
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In my mind, VG should stop by the end of this year.

I've heard that last week on a flight to Boston there were 42 pax. I know it from the flight's gate agent.
But one question remains for me : Where comes the money from ???
The same friend told me VG was getting a regional political support.

I still can't understand how VG can survive with such poor loadfactors.


FB.



Life is great at 41.000 feet...
User currently offlineLJ From Netherlands, joined Nov 1999, 4402 posts, RR: 0
Reply 9, posted (12 years 11 hours ago) and read 1760 times:

I still can't understand how VG can survive with such poor loadfactors.


Wealthy financial backers who just want to own an airline!


User currently offlineLeo From China, joined May 2006, 0 posts, RR: 0
Reply 10, posted (12 years 10 hours ago) and read 1735 times:

And this same guy finances mighty successful Air Holland.

lucky him.......


User currently offlineSndp From Belgium, joined Feb 2000, 553 posts, RR: 2
Reply 11, posted (12 years 7 hours ago) and read 1680 times:

Has anyone an idea of the amount of capital with which VG started?

It was one of my first concerns too, that the Bus. Plan of VG resembled the initial one of City Bird quite a lot. The only thing that City Bird never did (although they planned to do so) was flying to New York. Reutlinger (last but one CEO of Sabena) did not accept this and signed a rather expensive deal with City Bird to stop them going into competition with SN on the route, as we all know.

As they noticed their BP was not working as expected, City Bird transformed firstly into a long haul charter carrier and afterwards in a charter carrier towards southern European destinations, before going bankrupt. Will VG go the same way? I doubt they will survive, but I wish them all the luck, of course.

sndp




User currently offlineAirDD From United States of America, joined Oct 2001, 375 posts, RR: 0
Reply 12, posted (12 years 7 hours ago) and read 1668 times:


sndp,

Citybird flew to Newark for a while and when SN got into the capital of CTB the flight was moved to SN through a wetlease if I remember correctly.

The difference between CTB & VG is that CTB was a low-cost long haul operator, tickets were only available through the callcenter; VG wants to be a full service provider.

Money comes from Tony Gramm and I heard he put in 30 million euros of financial guarantees in VG

airDD


User currently offlineSAS23 From , joined Dec 1969, posts, RR:
Reply 13, posted (12 years 6 hours ago) and read 1643 times:

AirDD, VG might want to be a full service provider (which also means very much higher costs than a company like CTB ... though CTB also had a two class operation) but at present travel agents can't sell VG, so they, too, are only bookable online and via their call-centre.

What with the aircraft leases, fuel deposits etc, that €30m will disappear very rapidly indeed.


User currently offlineAirDD From United States of America, joined Oct 2001, 375 posts, RR: 0
Reply 14, posted (12 years 5 hours ago) and read 1626 times:

SAS23,

Actually VG has become available on the CRS systems recently through a ticketing agreement with Icelandic Air.

I don't know their daily cash-burn .. but I suspect it is pretty high  Big grin

airDD




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