fpofllflyboi
Posts: 224
Joined: Fri Jun 03, 2005 10:30 pm

Caribbean Merger?

Tue Jun 26, 2007 11:36 am

Good Evening All,


After much thinking and deliberation, I am stuck with the question: How likely is it and how feasible would it be, if there's a chance for Bahamasair (UP) and Cayman Airways (KX) to merge?

I say this because:

Both carriers service similar markets, being relatively local markets, that function as high yield leisure markets with significant premium demand driven by the fact of it being an epicenter for lavish living and offshore financing. This is evident by Bahamas and Cayman Islands both having relatively high GDP’s (by regional standards); $18,000 and $20,600 respectively, large tourist numbers and steadily growing economies.

With regards to Bahamasair’s ageing fleet.:

Bahamasair’s 26.1 years old, 3-strong 737-200 fleet is in dire need of replacement. Their reliability and onboard product and most importantly gas guzzling engines ensure Bahamasair will be laden with unprofitable aircraft eventually leading to the detriment of the company. A relatively low-cost (and effective) solution would be to perhaps acquire a handful of Boeing 737-300/500 (easy to come by, 50% cheaper to operate) as interim aircraft with the intent so serve as interim aircraft and offer commonality with KX to continue serving their current markets (Fort Lauderdale. Miami, Orlando) . For domestic and Caribbean routes (alongside thinner routes such as PBI and some Miami/Fort Lauderdale flights), keep the 7 Dash-311's albeit after undergoing some modernization to ensure competiveness, longevity and readiness (they are known to go tech sometimes) .

Another option could be to swap out 3 of the 300's for the larger and more effective Q-400's for busy Domestic and Caribbean routes and to partially supplement the jets given the Q-400 seats 74, but breaks even at 30 and produces a profit at 40.

Would both carriers continue to operate as separate entities? dual hubs? Singly brand identity? Maybe just a small tie-up? Make it a part of a rapid succession of mergers and buy-outs between Caribbean airlines in general??

Your thoughts are welcomed.


Davino
 
md90fan
Posts: 2798
Joined: Fri Jul 29, 2005 11:15 am

RE: Caribbean Merger?

Wed Jun 27, 2007 5:17 pm

Quoting Fpofllflyboi (Thread starter):
How likely is it

Slim to none  blush 

Quoting Fpofllflyboi (Thread starter):
how feasible would it be

I'm not sure, but as you mentioned the numerous similarities between the 2 carriers (and countries as well), it wouldn't the craziest ideas I've heard of with regards to airline consolidation on this site  rotfl 

Quoting Fpofllflyboi (Thread starter):
A relatively low-cost (and effective) solution would be to perhaps acquire a handful of Boeing 737-300/500 (easy to come by, 50% cheaper to operate) as interim aircraft with the intent so serve as interim aircraft and offer commonality with KX to continue serving their current markets (Fort Lauderdale. Miami, Orlando) .

I give it about 5 years before 732 replacements in the shape of 735s arrive, the government has been sitting on it's ass for the longest with regards to fleet modernization and privatization too. Apparently, early last year (according to some posters and newspapers) the Embraer ERJ-195 came out to be the winner of a study to find out what would be the best 732 replacement. Embraer even offered the jets to us with no payments for the first year, it was a sweet deal from what I recall  cloudnine 
http://www.devanwells.blogspot.com/
 
TransIsland
Posts: 1826
Joined: Wed Mar 03, 2004 9:22 pm

RE: Caribbean Merger?

Wed Jun 27, 2007 8:33 pm

Why should UP and KX merge? There aren't even any flights between their two bases by either carrier, and geographically, there's a little island known as Cuba between the two.
I'm an aviation expert. I have Sky Juice for breakfast.
 
md90fan
Posts: 2798
Joined: Fri Jul 29, 2005 11:15 am

RE: Caribbean Merger?

Wed Jun 27, 2007 9:16 pm

Quoting TransIsland (Reply 2):
Why should UP and KX merge? There aren't even any flights between their two bases by either carrier, and geographically, there's a little island known as Cuba between the two.

Fpofllflyboi obviously was thinking in his spare time about it and decided to ask Airliners.net, it's not like he said it's going to happen.
http://www.devanwells.blogspot.com/
 
BWIA 772
Posts: 1613
Joined: Sun May 12, 2002 2:33 am

RE: Caribbean Merger?

Wed Jul 04, 2007 3:52 am

Hi guys IMHO I think that we in the Caribbean need to have one carrier a combination of KX UP JM BW and LI. I know that this is really idealistic and given the strength of national pride and the in ability to bury the hatchet when it comes to old wrongs having a single carrier under a single brand is a long shot. However on the KX UP I think given that these airlines are so similar an Air France KLM merger could work.

As for the fleet like MD90 I think that the E190 will be the best aircraft if 735 come on stream in 5 year in about 10 years the airline will be in the same situation they are now while the E190
Eagles Soar!
 
trintocan
Posts: 2728
Joined: Sun Apr 23, 2000 6:02 pm

RE: Caribbean Merger?

Wed Jul 04, 2007 4:24 am

A KX and UP merger could potentially make much sense, as mentioned, along the lines of the AF and KL merger with shared maintenance and the like, co-ordinated schedules and maintained separate identities at least initially. The geographic separation between The Bahamas and the Caymans is not such a big deal - remember that KL and AF do have Belgium in between! They could thus have twin hubs in NAS and GCM and have a common jet fleet for the US markets and a prop fleet for the smaller destinations domestically.

Now, all it would take is some political commitment to get it done... That is something that the Caribbean region sorely lacks.

TrinToCan.
Hop to it, fly for life!

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