mozart
Posts: 2022
Joined: Thu Aug 14, 2003 12:21 am

Aéris In Financial Difficulties

Tue Sep 23, 2003 11:11 pm

Aéris seems to have severe financial difficulties, and this only after they have been awarded traffic rights for a number of French domestic routes out of ORY (slots liberated after the fall of Air Lib).

Article link: http://fr.biz.yahoo.com/030923/202/3erdw.html (sorry, in French)

Anyone knows more about what is going on at Aéris?
 
UTA_flyinghigh
Posts: 6304
Joined: Wed Oct 03, 2001 8:46 pm

RE: Aéris In Financial Difficulties

Tue Sep 23, 2003 11:19 pm

Maybe the "Capital" (French TV show on economy) episode in which Aeris was features (in not so good aspects) hurt them, or maybe they have trouble controlling their growth after the demise of Air Lib, or cash flow problems, or maybe all of the aforementioned.
For those not so familiar with French, the article states that Aeris is under the equivalent of "Chapter 11" (albeit with different rules than the US Chapter 11) and not yet into receivership or bankruptcy.
On an unrelated note, they came to CMF this year a few times  Smile :

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Will
Fly to live, live to fly - Air France/KLM Flying Blue Platinum, BMI Diamond Club Gold, Emirates Skywards
 
teva
Posts: 1764
Joined: Thu Feb 01, 2001 12:31 am

RE: Aéris In Financial Difficulties

Tue Sep 23, 2003 11:28 pm

Basically, it is what happens to all the airlines who want to start without sufficient funds.

Officially, it is not a start-up, since it is the continuation of AIr Toulouse. But it was a rather small charter airline. Then, because of AirLib bankrupt, they have decided to replace them, by becoming a low cost domestic airline.
Of course, it was a great opportunity, and very tempting. But to succed, you need a lot of money (as Jet Blue did).
You have to finance additional planes, crew, airport leases, and MARKETING, to be sure people know that you exist.
And all this is very expensive. And despite being profitable as a charter ops, they didn't have the first euro to finace this expansion.
They just thought that investors would follow.But apparently, they have not been able to find those investors.(Here, I think investors made a mistake)

Teva
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
 
FlySSC
Posts: 5179
Joined: Tue Aug 12, 2003 1:38 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 1:31 am

Those Airlines : AirLib, Aeris are (were) not Low-Cost company...They are (were) just LOW-FARE company...with costs of operations higher than AF or any regular airline in Europe...Low-Cost and Low-fare is not the same !!! but it has to go together if you want to survive on the market !

If you sell 10€ something that cost you 15€...you just go bankrupt ! that's the basics of commercial trade !!!

Aeris was a Charter airline. They just begin to discover that Charter and Regular is not the same business.

All the Charters airlines in France who tried to become Regular Airlines failed. I didn't know if any alredy succeded in Europe.
 
JGPH1A
Posts: 15080
Joined: Thu Aug 14, 2003 4:36 pm

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 1:36 am

Seems a shame - France badly needs domestic airline competition, but its pretty difficult with the employment and social policies that make hiring French staff so expensive, and with slot control at ORY and CDG tightly in the hands of AF (yes its supposed to be "independent", but nobody believes that myth).

Maybe Easyjet will pick up a few more ORY/CDG slots if Aeris goes under - there can be no excuse not to give them more now, who else would even ask ?
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
Goose
Posts: 1771
Joined: Thu Aug 21, 2003 3:40 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 1:37 am

Same deal in Canada. Canada 3000 proved that here, that moving from charter ops to scheduled service doesn't work well.
"Talk to me, Goose..."
 
Jumbolino
Posts: 473
Joined: Fri Mar 02, 2001 4:15 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 1:42 am

@FLYSSC
If they succeed forever I can not promise but I know a few charter airline very well, which managed they way to a low-cost airline on regular basis
- germania
- Air Berlin (very special case because they began there business as a US Carrier, which was allowed to fly to Tegel, after 1989 as a charter airline and now as a - say "low fare" airline)
- HLX (Hapag Loyd Express - low cost daughter of HapagLoyd charter airline,
yes, the airline with "mayday out of fuel due to a pilot error some years ago)

Pls if there are some german guys around which saw an error in this history report them - I'm not so familiar with the whole history.

oh and due to Air Lib, what I heard is that there domestic routes where soemtimes profitable, they burned most of there money with the longhaul routes.

Jumbolino.
Kind Regards, Jutta.
 
teva
Posts: 1764
Joined: Thu Feb 01, 2001 12:31 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 2:11 am

JGPH1A, if you look at the salary of the Aeris employees, you will see that they are pretty low, and it is not the key factor for their current trouble.
The key factor is that they didn't have investors to back-up such a quick expansion. When they have been granted the slots, the civil aviation asked them to raise 10 millions Euros. They couldn't.
With this lack of funding, even if they claimed they would use the Europe Airpost planes, they never signed the contract. They made very little advertising, this resulting in a 60% only loadfactor, which is not acceptable for their business model.
Another "grenouille qui voulait se faire aussi grosse que le boeuf" (don't know if there is an equivalent story in English
Teva
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
 
FlySSC
Posts: 5179
Joined: Tue Aug 12, 2003 1:38 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 2:23 am

@JGPH1A,
TEVA is right... It's easy to say all the time "ohh!!! salaries are too high !" . Salaries, especially in these Airlines is certainly NOT what is taking the company down... (maybe the salaries and "advantages" of the managers advisers etc.... cf. AirLib and Mr.Corbet )

Thy are just NOT prepared and ready for Regular operations.

You say France needs and Airline competition ? But Air France has the most terrible Airline competitor in a small country like France : The TGV....
 
Jumbolino
Posts: 473
Joined: Fri Mar 02, 2001 4:15 am

RE: Aéris In Financial Difficulties

Wed Sep 24, 2003 2:38 am

@FLYSSC
yes unfortunatly you are right ( I like flying) the TGV is the greatest competitor to any airline in france
regarding to my last trip report - I didn't fly to Nantes - I flew CDG and then used the TGV - it's rapid, it's cheap - ok it doesn't fly, but in this case, on earth are so many people afraid of flying ....

@Teva
if a little wants to be big it must not be that bad in any cases, sometimes it works, but maybe Aéris has grown too fast ....
(careful slight growth is in any cases better, but I think they saw only the change to fulfill the gap Air Lib has left)

Jumbolino.
Kind Regards, Jutta.
 
RJ100
Posts: 3895
Joined: Wed Nov 22, 2000 1:37 am

RE: Aéris In Financial Difficulties

Thu Sep 25, 2003 10:32 pm

B767-304(ER) F-GLOV is now blocked by handling agent Swissport for at least 48 hours in La Romana prior to its flight to Basel-Mulhouse.

Two more days of vacation for the passengers  Smile

RJ100

Sad about Aéris  Sad
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