rootsair
Posts: 4012
Joined: Sun Feb 06, 2005 3:25 am

Why Can't Some Countries Keep An Airline?

Wed Dec 07, 2005 10:47 am

I was wondering the other day about a country like Peru! Peru seems to have had quite a number of "National Carriers" ...amongst which Aero Peru , Faucett Peru, Aero Continente

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However they all ended up in Bankruptcy and failed !


Nevertheless, some foreign airlines have managed to open a subsidiary in Peru such a TACA with TACA Peru and LAN with LAN Peru....however these seem to be doing pretty well....

How is it that Peru cannot sustain itself an airline but once foreign airlines come they work well.....I guess it has to do with the managing and not the routes since the new subsidiaries seem to be doing good on what were the routes of the old Peruvian airlines....


This is just an example and am sure it applies to other countires
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IAH744
Posts: 127
Joined: Sun Dec 04, 2005 11:09 am

RE: Why Can't Some Countries Keep An Airline?

Wed Dec 07, 2005 11:02 am

I think the aero peru 757 crash [due to a piece of tape covering a pittot static tube not allowing the pilots to tell how fast or high hey were going or any other vital info] sent them into bankruptcy
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Ryanair!!!
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RE: Why Can't Some Countries Keep An Airline?

Wed Dec 07, 2005 7:17 pm

It is all a matter of bad management in most cases... Overstaffed, over paid, high cost structure, bad yield management etc. I guess the list goes on...

Let's take the case of Sabena. In it's hey days, Singapore Airlines (SQ) actually wanted to take a stake in the ailing carrier. While on the negotiating table, the Belgians got snooty and wanted a price which was pretty high so no deal was made. Sabena painted themselves as a high and mighty international carrier with a network that reached far afield (compared to SQ's international network, Sabena's was pretty small actually). The selling point of the airline was the European network and it's feed into BRU.

During it's final days, Sabena called on SQ and asked if the latter still wanted a stake - at the same price despite the desperation! Needless to say, SQ told them "thank you, but no thank you" and hung up the phone.

Such is the attitiudes that we are dealing with here.
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yowza
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RE: Why Can't Some Countries Keep An Airline?

Wed Dec 07, 2005 10:32 pm

Some countries simply don't need one.

YOWza
 
masseybrown
Posts: 4551
Joined: Wed Dec 11, 2002 2:40 pm

RE: Why Can't Some Countries Keep An Airline?

Wed Dec 07, 2005 10:34 pm

Wasn't Fawcett originally German-owned in the 1930's?

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