LAXintl
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Augsburg Airways To Shut Down

Fri Mar 29, 2013 4:45 pm

I guess the owners were not kidding when they said closing down the company might really be an option last year..

I suppose the standalone regional operator business is not very viable either these days in Europe.



German regional operator Augsburg Airways will discontinue operations October 31 following the end of its long time cooperation with Lufthansa.

The privately held airline which operates fleet of Q400s and EMB190/5's had its flying contract terminated as part of restructuring of Lufthansa's its regional airline business.

The shutdown would see loss of nearly 500 jobs as shareholders begin the liquidation process.

Story:
http://atwonline.com/airlines/augsburg-airways-shut-down-end-october
and
http://www.ch-aviation.ch/portal/new...portedly-closed-down-by-october-31

=
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Paolo92
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RE: Augsburg Airways To Shut Down

Fri Mar 29, 2013 6:25 pm

All the Embraers are leased from Lufthansa. The 5 E195 are reported to join LH CityLine's fleet, but probably also the 2 E190 will have the same fate.
Lufthansa CityLine to take over five Augsburg Airways EMB-195s
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MHG
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RE: Augsburg Airways To Shut Down

Sat Mar 30, 2013 7:29 am

Quoting LAXintl (Thread starter):

I suppose the standalone regional operator business is not very viable either these days in Europe.

Sad it has come to this ending ...
But - despite others may not agree - it was to be expected sooner or later if an airline "sells it´s soul completely" to one of the big boys. The same happened to Contact Air before ...
A standalone business for a regional has become at least very difficult here in Germany - not impossible in Europe per se, though as a few examples show (e.g. Intersky, flyBE).
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flyingalex
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RE: Augsburg Airways To Shut Down

Sat Mar 30, 2013 8:53 am

I think the two biggest problems for regionals here in Europe are the higher population density and the well-developed alternative links.

Higher population density:

Population centers are located relatively close together, and there are comparatively few "gaps" that need to be bridged. Therefore, you're always vaguely "near" a larger population center, and an airport the big carriers serve. There are very few airports/areas in Europe that really are far enough away from everything else to support a regional carrier.

InterSky is a good example of this: Friedrichshafen is at least 2 hours from any of the nearest major airports (ZRH, MUC and STR), rail links are slow by European standards, and road links are also somewhat limited. This is mostly due to geography, the presence of Lake Constance and the mountainous terrain isolate the area a bit. Despite this, the region is affluent and also generates inbound traffic. This allowed InterSky to build a nice little niche operation there.


Well-developed alternative links:

I'm mostly thinking rail here, more specifically high-speed rail, but also motorway networks. It is often said that the critical threshold beyond which people will choose to fly is a 4-hour trip by train. With high-speed rail, that four hour window covers a lot of distance. From Frankfurt, for example, you can be in Paris, Zurich, Munich, Amsterdam, Hamburg or Berlin in four hours (or slightly more) if you take the train. Lateral links between smaller population centers are also good. This makes it tough to build a business case for regional air services on a lot of routes (unless they're feeders to hubs).
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raffik
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RE: Augsburg Airways To Shut Down

Sat Mar 30, 2013 3:36 pm

That's a shame.
When I was 18 I flew from London City to Munster on their Q300 and back again.
The service was fantastic, very friendly and helpful. I remember them bringing round a basket of sweets before landing as well! This would have been about 2001 .. the June before 9/11 I think
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r2rho
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RE: Augsburg Airways To Shut Down

Mon Apr 01, 2013 1:10 pm

A pity, but their whole existence was based on the regional contract with LH, once that was gone, there was no way for the operation to be viable. There goes yet another German regional airline, after OLT, Contact Air, Cirrus, and a couple more that I surely forgot...

Quoting Paolo92 (Reply 1):
All the Embraers are leased from Lufthansa.

Who owns the Q400's? I assume also LH?
 
Burkhard
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RE: Augsburg Airways To Shut Down

Mon Apr 01, 2013 3:26 pm

Two of the Q400 are leased from BCAP
 
JU068
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RE: Augsburg Airways To Shut Down

Mon Apr 01, 2013 3:28 pm

Does anyone know how they did financially?
 
LAXintl
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RE: Augsburg Airways To Shut Down

Mon Apr 01, 2013 8:37 pm

Well they have been around for almost 35-years, so I suspect they were profitable enough to survive so long.

In general fixed free flying like the Lufthansa stuff usually is cost plus , so there is a level of guaranteed profitability built in.
From the desert to the sea, to all of Southern California