sndp
Posts: 534
Joined: Fri Feb 18, 2000 6:07 pm

Sabena To Outsource Regional Flights

Thu Feb 01, 2001 5:17 pm

Sabena is reported to be in talks with former employees of Belgian Charter Company Air Belgium which stopped operations over a year ago, due to financial problems. CEO of the former company and some other employees have proposed to take over regional flights of Sabena, which would be flown with regional jets and at lower costs than with Sabena employees. Sabena press officer Wilfried Remans did not want to comment on the news, which is understandable as Sabena is in talks these days to find 15 billion BEF in cost reductions and a new job for over 600 employees. Some time ago, it was reported that Corssair would take over sopme of these routes.

Other news: Employees of Sabena had order a financial audit to find out whether or not Swissair had caused the financial trouble at Sabena but the first results do not give any indication of that. Today, Sabena CEO Christoph Müller will give its first press conference in months. He will talk about the problems and the on going negotiations with the unions which will start today to find a recovery plan before next thursday, when the Sabena board meets to decide whether or not to proceed with the activities.
sndp
 
gkirk
Posts: 23349
Joined: Thu Jun 15, 2000 3:29 am

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 5:19 pm

So I guess this may affect some UK routes,
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
sndp
Posts: 534
Joined: Fri Feb 18, 2000 6:07 pm

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 5:23 pm

Sabena has today an agreement on London with Virgin Express but there have been rumours that Sabena was renegotiating these deals. According to me an new regional partner could take these over flights. Other flights to the UK, now operated by DAT, a daughter company of Sabena, could, according to me, be affected as well. This is however only a guess. As I mentioned, the recovery plan Bleu Sky is now far more important as it decides on whether or not SAbena will proceed flying or not. It is a pitty that we do not know whether the outsourcing of regional flights, which results in a costs reduction, is part of Bleu Sky or not.
sndp
 
TCA256
Posts: 695
Joined: Sat Dec 04, 1999 3:59 am

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 5:40 pm

Sndp,

I've got a simple question...the medias (RTBF, VRT,...)
always say one explaination of the financial problems
remain on the rise of kerozene prices which occured these past months, this is probably true but not a sufficient explaination....do you have any idea why the company is losing money while it has never been so popular since a long time ? it has been also said that an other explaination is the amount of losses with non profitable destinations....I thought the sharing of
destinations with sub-companies has solved the problem, for example LHR with VEX....

take care,
 
sndp
Posts: 534
Joined: Fri Feb 18, 2000 6:07 pm

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 6:06 pm

Sabena has indeed never been as popular ad these days, see the rise of around 10 percent of passangers last year against an average 7 percent for the industry. Explanations are:
The cost structure of Sabena is very very very high. Sabena has almost never made any profits, 1998 excluded when they sold some things which made a 1 year gain but these are earnings that you do not have anymore the next year.
Sabena operates an extensive hub-and-spoke network, all with its own employees and aircraft, not like Lufthansa with Team Lufthansa. This is very expensive. To attract connecting traffic, the prices of the tickets are very low. I have done a study about this and in most cases Sabena had the cheapest tickets compared to KLM, SAS, LH, BA, BM.
Sabena has only 17 percent bussiness class passengers as it still has to face its past bade image, though this is improving.
Management has made some mistakes too. ASM have grown far too fast, the change of aircraft from B737 to Airbuses went too fast for SN, they sold a fuel hedging contract last year, just before the prices went through the ceiling, they kept some routes, like Brussels-Johannesburg, which lost around 1 Billion BEF a year.

So, now they have to work, again, out some cost-reductions to be able to keep operating. Some parts of Sabena, Sabena Catering/Cargo/Technics, will be sold to Swissair, some routes are/will be stopped (Newark and Johannesburg already stopped), the employees will have to work more hours for the same amount of money, and maybe some flights will be outsourced to a new company or to Crossair, probably Crossair Europe, who knows.

Hope this helped a little bit
regards
sndp
 
TCA256
Posts: 695
Joined: Sat Dec 04, 1999 3:59 am

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 6:25 pm

dank u wel...  Smile
 
sndp
Posts: 534
Joined: Fri Feb 18, 2000 6:07 pm

RE: Sabena To Outsource Regional Flights

Thu Feb 01, 2001 6:37 pm

No thanx, my pleasure

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