Hey everyone, sorry its took me so much time, i had today my proportion test to my finals tests.
as for Acvitale new hobby.....very interesting one, but i thought that Israeli newspaper are trash, well i guss not....(but they do mistakes sometimes....)
1. funny, I read this article at the Hebrew version, it was'nt mentioned that LY had a load factor of 97%-100%, which is totaly not correct, the load factor stands between 78-82%, I know you Acvitale, you'll say something, but i cant explain this otherwise.
You may call to LY had office at TLV and they should confirm to you my numbers,
LY had office at TLV- 00-972-3-971 6111. you can call them 24 hours a day.
2. this is an old information, i heared this one at the begining of April.
3. January-March monthes are well known by their weaknesses,
many Airlines have a loss at those winter monthes.
because of lack of demand
4. The reasons for this loss are:
A. Fuel cost which climbed at more than 100%
B. Not flying on Saturdays had always made LY to lose money, (not to mention the security costs).
Arkia is able to lease from El Al only the 757's on Saturdays, since Arkia has pilots only for the 732 & 757,
Arkia is not paying much for them, and dont forget that the 757's are only a quarter of the fleet.
All the 744's, 742's, 762's, 737's are just waiting on the ground useless.
C. The prices, just look on the NYC-TLV route, on 1999 the winter price was at about 649-749$ for some certain flights, this year LY price for some flights was 499$ (!),
Because of high competition on many routes (competition with CO-EWR, FF-JFK, RJ-far east, LH, KL, BA, AF,) and the willing to fill the flights the prices had crashed, I for example flew twice to FRA and once to GVA to do some ski on those mounthes, the price for those 3 trips together had cost like one trip on TLV-JFK-TLV on summer,
The point is that even on high loads to oporate a non-low cost company on such low cost prices is not repayable,
surely there are business pax and many other pax who pays higher prices but the prices sobject had cause the airline to lose.
I heared that at the LY's management they were really surprised to hear that the loss wasnt much higher,
The airline must cope with many problems, its amazing that the airline can get profits sometimes, think about it, the airline works only 5.5 days a week, also on holiday, the airline is forbidden of flying (this Friday is a holiday, "Shavuot", the airline will work this week for only 4.5 days)
On routes to the far east, flights get longer in 3.5 hours than they should be, because flying above Saudi Arabia is forbidden to the airline, instead the airline flys above red sea, which makes the flight longer at about 3.5 hours to each diractions (!!!),
The airline said last October that it interested on ordering 3-4 A330-200 to replace the old 762, well, since LY is not getting specialozation, they cant order any aircrafts with out the government approval, and they are not getting, because the traffic minister is not sure that its good for Israel to buy Airbus, imagine, if they would have ordered boeing, i guss we would have seen a 764 in less then 2 years, point is that the government want to decided for LY which a/c to buy, though LY believes the A332 is better for the airline. anyway things might change now because soon there will be a new minister.
There are many problems with LY,
Acvitale & TWfirst, I am very pleased with the topic, its correct, the airline had lose, but not with this ridiculous load factor which was written.
thank you for giving me the option to explain.