Beaucaire
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Will The German Airline DBA Survive?

Sun Jul 03, 2005 6:43 pm

Saved from bancrupcy and bought for 1 € from British Airways by Rudolf Wöhrl,a well known businees man from Nuremberg who founded Nürnberger Flugdienst (which became Eurowings ),DBA seesm to lack a clear concept.
The partnership with Germania owner Bischoff broke up two days ago,and DBA is searching to survive.
But -for an outsider living not in Germany -the airline is literally unknown and does focus too much on domestic flights competing LH rather than develop fights abroad.
What are the options for Wöhrl - merging with another lowcost ?

[Edited 2005-07-03 11:57:45]
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7LBAC111
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 6:52 pm

Weren't easyJet after DBA a few years ago? Will there likely be any interest from them now??

7LBAC111
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johnnybgoode
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 7:01 pm

now i don't know the details why dba bought back Bischoff's stake but the media stated that both partners would now focus on their core business again: bischoff/Germania on leasing aircraft and dba and operating scheduled flights.
but you're right, this buy back comes soon after the merger was completed so it "smells".

but other than, i wouldn't say that dba is in any trouble. i haven't closely followed their financial results, but from what i have heard they have turned around the airline and assume they will post a profit in the next financial year.

from what i've learned from a german aviation board, dba is currently in talks with Boeing of up to 40 73G. in the meantime, dba will take 2 more Fokker 100s and is supposed to open a number of new routes in fall/winter.

rgds
daniel
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Delta777Jet
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 7:01 pm

I think it is a everything or nothing business plan what they are running. The deal with Germania was bringing them twice aircraft units to operate and I guess that DBA doesnt had the money to pay a huge deposit for these jets that is why Bischoff got the stake. But on the other hand the deal is rescueing the DBA since they have now a very positive cash flow. What I think is that they make an operational loss and can survive because of the cash flow for another year or so ?!? To fly domestic makes only sense on absolute good routes like HAM-MUC because the airline need also to pay -16 % on revenues to the state as a domestic VAT what you dont have on european domestic routes and landing fees are also not very cheap in all over Germany. So lets see what is bringing the future !

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Beaucaire
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 7:09 pm

That's why I said with their (suggested) increase in fleet they have to set up more international destinations,since growth in germany alone is impossible.
But since nobody knows them abroad,they must enter into an agressive marketing campaign to make the airline known to customers outside Berlin,Munich or Düsseldorf...
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pelican
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 7:12 pm

Although Germania gave all (64%) their shares back to DBA and DBA (Intro) gave their GEXX shares back to Germania I'm not sure whether DBA is in a crisis.
I doubt that DBA is struggling to survive. The question is whether DBA is profitable. In 2004 they were profitable without Germania. So I think their short-term survival is secured. But they will need a new source to fund a fleet modernisation.
Spiegel online mentioned an interesting fact - the cooperation between DBA and GEXX will be expanded despite the recent changes.

pelican
 
cgnnrw
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 7:53 pm

My last flight with DBA was about 3 months ago and I was quite impressed with their service on board. They are the only low-cost carrier operating in Germany that provides on-board service without charging. Okay, they limit you to one beverage and a snack but still it shows they care about their customers and on short flight inside Germany more is not necessary. Their price politics seems fair so I hope they are around for a while.
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MHG
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 9:28 pm

Well, the recent issue is mainly about different ideas regarding how to deal with workers unions.
There�s a BIG DIFFERENCE between Mr. Bischoff and Mr. Woehrl in dealing with unions!!!

Since Mr. Woehrl (with his INTRO and some other investors) have decided not to continue in the bid for OLYMPIC the cash that was "locked" for OA is availlable again!

DBA will further grow! They just announced to introduce some additional routes (not yet released which, though) in the coming winter schedule (with the 2 added F100) and i don�t believe them all to be domestic!!!

I suppose they will also add international routes (e.g. Paris could be a destination as it is still quite high on the priority list!!! - the slot problem at all Paris airports was a hindrance so far...)
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SXMbyKLM747
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RE: Will The German Airline DBA Survive?

Sun Jul 03, 2005 11:54 pm

What I think is strange about DBA in the German Market, is that it can not compete with LH on all routes fairly. I.e. between CGN and MUC, or DUS and MUC I can fly cheaper on LH... why is this? Kind of strange, as DBA is marketing a low cost concept, while LH is known to be a more expensive full-service carrier...
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Beaucaire
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RE: Will The German Airline DBA Survive?

Mon Jul 04, 2005 12:02 am

DBA lack a clear and well defined strategy - Air Berlin has one,LH has one,Ryanair has one - even Sky Europe has one.
But DBA seems without clear character or sales-approach. Just going after LH in Germany is stupid !!!
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