teahan
Posts: 4990
Joined: Sun Nov 21, 1999 11:18 pm

European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Sun Feb 03, 2002 7:35 am

Hello,

We have heard a lot recently about Ryanair and EasyJet fleet expansion. But there has been total silence about the other 2 main European low-cost airlines, Buzz and Go. I know that Go are expanding at EMA and Buzz are launching a number of French routes but what about their respective fleets? FR jumped at the current situation to make an order, U2 (EasyJet) negotiating, strange that there is silence on the Buzz and Go front

About the Ryanair 100 plane order, did anyone else see the $20 Million per aircraft quoted my Meryl Lynch? That is nearly 1/3rd of the list price, Boeing have to be losing money on that don’t they?

On a slightly related topic, what is happening about Buzz’s 2 aircraft type policy? Are they getting rid of their Bae 146s?

Anyone have any rumours about any further European lo-cost airlines opening? We now have Ryanair, EasyJet, Go, Buzz, Go, BMI Baby, GoodJet and maybe Mama who are aiming to be a semi lo-co if they ever open. There is also the rumour of a lo-co set up by Lufthansa. Anyone hear of any others opening up soon? Considering the % of passengers transported on low-cost airlines over here, compared to the US, we have a long. Looking at it that way, Asia and Africa even have a longer way to go.

Thanks.

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
greenjet
Posts: 869
Joined: Sat Aug 25, 2001 9:59 pm

RE: European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Sun Feb 03, 2002 7:55 am

With regard to Go I read this on ATI yesterday:

UK-based low-fares airline Go plans to be operating 80 aircraft by 2006 and take its shares public this year or next to help finance its fleet expansion plans, its chief executive has revealed.

Go chief executive Barbara Cassani told the Raymond James growth airline conference in New York today that the carrier plans to grow its fleet at a rate of 30% a year to have 80 aircraft in service in 2006. Go expects to continue opening “one or two” new network focus cities a year throughout the next several years as it pursues what she says are “tremendous” growth opportunities available to European low-fares airlines.

Cassani confirms Go is planning to launch an initial public offering (IPO) of shares in 2002 or 2003 to help finance its fleet expansion and to repay debt, but says “it is far too early to say” yet what percentage of its overall shareholding it plans to offer publicly and if majority shareholder 3i will want to cash out of its investment at that point.

“We’re in a listening mode,” she says, bearing in mind her audience today of US investors and financial institutions. “We’d like your input.”

Saying the potential in Europe for growth of low-fare services “is almost limitless”, given that 13 European Union countries still do not have any low-fare hubs and most of those that do have just one, Cassani says Go is in discussions with both Airbus and Boeing over its potential fleet growth needs.

Go has not decided whether it should stick with the Boeing 737-300 that forms its only existing fleet type – the airline is now operating 18 737-300s – or, like all other successful low-fares carriers throughout Europe and the USA, upgrade to new-generation equipment.

Cassani acknowledges that newer 737s and Airbus narrowbodies have better direct operating costs per seat than the 737-300, but points out that in the current airline industry downturn prices and lease rates for second-hand 737-300s “are so low that they are still very attractive” in terms of their overall operating costs.

“We will look to what’s best for the network,” she says, noting that finance director Andrew Cowen is leading a team of Go managers which is reviewing all the fleet expansion options available.

Cassani says that although Go’s 4.17p (5.88c) unit cost per available seat kilometer (ASK) is higher than Ryanair’s, the Irish carrier provides a goal for Go to seek. She says Go’s ASK cost is “virtually the same” as that of UK rival easyJet.

Although Go’s revenues “wobbled for about six weeks”, after the 11 September attacks its fares and profitability are now “back on budget”. Go still expects, however, to post a loss for the second half of its financial year, which ends on 31 March.

“We’ve budgeted to lose money in the second half – you do that when you’re growing as fast as we are,” says Cassani. However, she says, Go will definitely produce a pre-tax profit for its 2001-2002 financial year that is somewhere between the ₤4.2 million ($5.9 million) it earned before tax in the previous year and the ₤16.9 million pre-tax surplus it reported at this year’s halfway stage.

 
teahan
Posts: 4990
Joined: Sun Nov 21, 1999 11:18 pm

RE: European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Sun Feb 03, 2002 9:22 am

Hello,

Firstly, I dunno what that "56786#" in the topic title is all about, I only put a ' at the end of the "Airlines"

Thanks for that Greenjet, glad to see that Go are seemingly doing ok. But 30% expansion an year, 5% more than the already ambitious 25% planned by EasyJet and Ryanair.

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
teahan
Posts: 4990
Joined: Sun Nov 21, 1999 11:18 pm

RE: European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Sun Feb 03, 2002 11:13 pm

Hello,

So anyone have news about Buzz???

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
Guest

RE: European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Mon Feb 04, 2002 3:20 am

I flew with Buzz to Helsinki back in July on a 737. In the inflight magazine was an article about how KLM uk were returning the 2 737's to KLM for route expansion. Maybe they will be only operating the 146?
 
greenjet
Posts: 869
Joined: Sat Aug 25, 2001 9:59 pm

RE: European Low-Cost Airlines’ Fleets (Ryanair Etc..)

Mon Feb 04, 2002 3:31 am

Operating with the 146s is not going to work as they are not the right aircraft for a low cost airline. Using the 146 was one of the reasons for Debonair's downfall and it's no surprise that Buzz has put back it's target for break-even another year. While other low cost airlines are booming Buzz are losing. That last sentence almost sounds poetic  Smile

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