RJ100
Topic Author
Posts: 3895
Joined: Wed Nov 22, 2000 1:37 am

SkyEurope To Receive New Money

Tue Aug 29, 2006 5:45 pm

Finally good news from SkyEurope. As announced yesterday evening, the company will receive 56 mio. Euro "fresh money". Since the company expects to stop losses in 2007, the company is saved in the medium-term.

Shares in Vienna currently up nearly 20%.

How does everyone think about NE's future?

Regards,
RJ100
none
 
Danny
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Joined: Thu Apr 25, 2002 3:44 am

RE: SkyEurope To Receive New Money

Tue Aug 29, 2006 5:47 pm

At current ratio they will burn that in 6 moths. Although I agree that thanks to that they will be able to survive winter.
 
RJ100
Topic Author
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Joined: Wed Nov 22, 2000 1:37 am

RE: SkyEurope To Receive New Money

Tue Aug 29, 2006 6:29 pm

Yes, if they burn money like now. If I remember correctly, they expect to stop the bleeding and expect a net profit of 2 mio. for 2007. Are these numbers still up to date?

Regards,
RJ100
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Danny
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Joined: Thu Apr 25, 2002 3:44 am

RE: SkyEurope To Receive New Money

Tue Aug 29, 2006 7:31 pm

The problem is whether these numbers are credible. If you make Eur 33 m loss on Eur 51 m revenue (like they reported in Q1 2006) you need a miracle to become profitable by next year. And Ryanair is stepping on them harder and harder.
 
Pe@rson
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RE: SkyEurope To Receive New Money

Tue Aug 29, 2006 8:58 pm

Quoting RJ100 (Thread starter):
How does everyone think about NE's future?

They will cease operations, as will almost all European LCCs bar FR, U2 and probably AB. The question ought to be: when will it?
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
Danny
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RE: SkyEurope To Receive New Money

Tue Aug 29, 2006 10:24 pm

Quoting Pe@rson (Reply 4):
They will cease operations, as will almost all European LCCs bar FR, U2 and probably AB.

That is a bit too pesimistic but a few of them indeed may drown soon.
 
Pe@rson
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Joined: Sat Jan 13, 2001 6:29 pm

RE: SkyEurope To Receive New Money

Wed Aug 30, 2006 2:32 am

Quoting Danny (Reply 5):
That is a bit too pesimistic but a few of them indeed may drown soon.

You wait and see.  Smile
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
PlaneHunter
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Joined: Tue Mar 14, 2006 3:17 am

RE: SkyEurope To Receive New Money

Wed Aug 30, 2006 2:56 am

Quoting Pe@rson (Reply 4):
They will cease operations, as will almost all European LCCs bar FR, U2 and probably AB. The question ought to be: when will it?

Only if these airlines move into all other LCCs' markets and attack the competition head-to-head.

And we don't know what else may happen in the future. One single crash and subsequent negative media coverage could severly hit even a major operator.


PH
Nothing's worse than flying the same reg twice!
 
RJ100
Topic Author
Posts: 3895
Joined: Wed Nov 22, 2000 1:37 am

RE: SkyEurope To Receive New Money

Wed Aug 30, 2006 5:06 am

It now really looks much better for SkyEurope.

SkyEurope is just cool, their product beats most others (saying as a huge easyJet fan) and their founders are able to fascinate. Maybe they are just crazy to found an airline just days after 9-11 but they know how to persuade people (investors) with their ideas and visions  Smile .
And I also think that they do operate in interesting markets.

Good luck to them.  Smile It won't be easy of course.

RJ100
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Beaucaire
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RE: SkyEurope To Receive New Money

Wed Aug 30, 2006 5:30 am

RJ100 - I would like to share your optimistic view about SkyEurope-they have burnt more than 50 M €,their capital-rate is close to zero and the home-market not strong enough to provide yields that could ever provide any payback of losses.
As much as I share your view about the quality of their product,I am pessimistic about their long-term perspective.
They shoud have opened a base in NUE rather than in Bratislava !
Please respect animals - don't eat them...
 
RJ100
Topic Author
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RE: SkyEurope To Receive New Money

Wed Aug 30, 2006 7:07 am

No problem. I know that it is difficult for them and I can understand your opinion very well.

Was BTS not established because it is close to Vienna? I wonder if they are succesful to attract passengers from Vienna or not.

Regards,
RJ100
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