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Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 8:47 am

Air Seychelles has announced a business transformation plan aimed at ensuring the airline's sustainability and long term profitability

Key notes
Both Paris and Antananarivo will be terminated from 24 April 2018
Focus will on domestic/regional networks
Leased A330's to be returned to lessor
Currently A320's will be replaced from 2019
Product and service offering to be reviewed
Workforce to be reduced

https://www.airseychelles.com/en-sc/abo ... -long-term
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TheLion
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 9:28 am

A real shame. It’s sad to see Air Seychelles yet again unable to achieve success in long haul markets. As many on here say, it’s always difficult for a small airline with just a couple of long haul frames to make them work due to fleet utilisation, technical issues and load factors.
 
Blerg
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 9:31 am

Congratulations to Etihad for failing to turnaround yet another airline.
 
Drucocu
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 9:48 am

Oh haha, I also posted this but you were ahead of me.

It's a shame to see them go, I really enjoyed flying them and the free 14 hour daytime layovers to explore the main island on my way to Mumbai and back. I was seriously considering going out of my way to fly this route again, but sadly this won't be an option anymore.
 
flydude380
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 9:55 am

My thoughts are with the employees :(
 
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piedmontf284000
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 9:59 am

What's the point? JNB, MRU, BOM, and AUH are all that's left. Just shut it down and put it out of it's misery. This is just prolonging the inevitable. Death by a thousand cuts,
 
devron
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 10:12 am

I would like to fly them to MRU-SEZ in August but am a bit hesitant to book with all the cuts. I would be traveling with the family.
 
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mercure1
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 10:54 am

Good.
No need for costly longhaul.
Focus on serving regional markets using smaller sized capacity.
mercure f-wtcc
 
DexSwart
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 10:56 am

piedmontf284000 wrote:
What's the point? JNB, MRU, BOM, and AUH are all that's left. Just shut it down and put it out of it's misery. This is just prolonging the inevitable. Death by a thousand cuts,


I believe DUR is also left.

The Seychelles could make a great connection point between Africa and Asia.

Maybe they should try and capitalise on this even more?
Durban. Melbourne. Denver. Hong Kong.
 
Flyingsottsman
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 11:54 am

I have wondered why they never tried Perth, Seychelles would be a fantastic tropical holiday Island and there could a market from the West Coast.
 
IndianicWorld
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 12:19 pm

Flyingsottsman wrote:
I have wondered why they never tried Perth, Seychelles would be a fantastic tropical holiday Island and there could a market from the West Coast.


Likely as it won’t make money.

Developing a market takes time and money, which some airlines don’t have a lot of.

Unfortunately, the partnership with EY appears to have failed to find the right formula for success.
 
filipair
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 12:22 pm

It's a shame. CDG-SEZ last year was a great flight. The ME3 have brought in a lot of capacity, and it seems to me that Ethiopian has brought the most pricing pressure onto Air Seychelles. The re-opening of several Europe-SEZ markets is just icing on the cake. That said, perhaps it's not a bad strategy to focus on what others can't replicate, or the Indian ocean micro hub. It's also entirely possible that Air Seychelles has to scramble after Etihad pulls out, and is unwilling to bet the farm to simply keep the A330's.
 
SonOfABeech
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 12:53 pm

Thing is, the ME3 are an excellent stopover if you're visiting the Seychelles from anywhere except central/southern Africa. Also, I think SEZ is physically too small to sustain a meaningful hub operation.
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 2:11 pm

DexSwart wrote:
I believe DUR is also left.

The Seychelles could make a great connection point between Africa and Asia.

Maybe they should try and capitalise on this even more?


They cut Durban a while back. Trying to sell connections between Africa and Asia would simply put them into competition with Ethiopian, Emirates and Qatar and they'll lose that competition by having a much higher cost structure.
 
toxtethogrady
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 3:39 pm

DexSwart wrote:
The Seychelles could make a great connection point between Africa and Asia.

Maybe they should try and capitalise on this even more?


The Keflavik of the Indian Ocean? Not enough travelers, not enough interest...
 
jubguy3
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 3:40 pm

That's not good, I know a volunteer group I've gone with who uses Air Seychelles (and Etihad from the US) to get from Abu Dhabi through the Seychelles to Madagascar. I wonder if they scheduled it differently this year.
 
raylee67
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 3:52 pm

Seychelles is an exotic tourist destination. There is a constant stream of tourists but way less than nearby destinations such as Maldives. Tourist traffic from Europe is dominated by ME3. There is simply no need for regular non-stop to Europe. For Air Seychelles to have a need of international existence, the country needs to work to diversify its tourist base, namely to attract more tourists from India and East Asia. Then may be Air Seychelles can start long haul flights to places like SIN or HKG. Just don't see a future for European long haul.
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klakzky123
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 4:07 pm

They really needed a better partner than Etihad. Air Mauritius figured out a sustainable niche with Air France (and some lesser partners in Asia). Granted, Mauritius has strong Francophone ties which really helps with the CDG flights but they've managed to build a strong network based on their historical, economic and tourism ties to other countries.
 
berari
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 6:06 pm

filipair wrote:
It's a shame. CDG-SEZ last year was a great flight. The ME3 have brought in a lot of capacity, and it seems to me that Ethiopian has brought the most pricing pressure onto Air Seychelles.


Opening up their space to the ME3 was a double edged sword, same story in Mauritius. While it brings in all the tourists that the islands fully depend on for survival, it also greatly challenges their home grown airlines. I am sure that for the island nations, having more airlines generates them more money than having to run their own airline. Perhaps they can focus on ground services and inter island flying only.

I never understood the value in Air Seychelles for Etihad.

To reduce the financial impact of such competition, Air Seychelles will consolidate its international network by suspending its Paris service effective 24 April 2018 and exit the two leased Airbus A330 aircraft out of the fleet. As part of the network efficiency development strategy, and considering the high dependence on the Paris traffic feed, the airline will at the same time discontinue its Antananarivo service.


This is interesting. Not only is Air France starting new services from Paris, Ethiopian has upped its game with new service to Antananarivo in 2017 and its upcoming launch to Nosy Be. It's also adding capacity this summer, switching in the B788 for the B738 to TNR.
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Jan 23, 2018 8:39 pm

klakzky123 wrote:
They really needed a better partner than Etihad. Air Mauritius figured out a sustainable niche with Air France (and some lesser partners in Asia). Granted, Mauritius has strong Francophone ties which really helps with the CDG flights but they've managed to build a strong network based on their historical, economic and tourism ties to other countries.


Mauritius is also much larger with 14 times the population with a far more sophisticated and richer local economy.
 
rukundo
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 11:37 am

A real shame. It’s sad to see Air Seychelles yet again unable to achieve success in long haul markets. As many on here say, it’s always difficult for a small airline with just a couple of long haul frames to make them work due to fleet utilisation, technical issues and load factors.


Till at least 2015, Air Seychelles recorded profit, after Etihad take over

2016: Air Seychelles records profit fourth consecutive year

Air Seychelles has been a profitable company for the fourth consecutive year, this in spite of challenges and what has been termed as turbulences in the aviation jargon.

For the year 2015, the national airline has recorded a profit of US $2.1 million, from total revenue of US $105.4 million.

http://www.pfsr.org/news/air-seychelles ... tive-year/


I blame manly the over capcity between Europe and Seychelles. Ethiopian, Turkish Airlines, Austrian have started to serve SEZ, while British Airways and Air France (via Joon) will resume service. Emirates has added more flights, and Qatar Airways has resumed flights to SEZ. After years of crisis, tourism is once again growing.
 
Breathe
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 1:49 pm

evanb wrote:
klakzky123 wrote:
They really needed a better partner than Etihad. Air Mauritius figured out a sustainable niche with Air France (and some lesser partners in Asia). Granted, Mauritius has strong Francophone ties which really helps with the CDG flights but they've managed to build a strong network based on their historical, economic and tourism ties to other countries.


Mauritius is also much larger with 14 times the population with a far more sophisticated and richer local economy.

Another factor to take into consideration is that the Gov. of Mauritius have been very restrictive in terms of letting other operators use MRU. They own a majority stake in the airport and Air Maurtius (no conflict of interest there. :lol: ) Even with EK serving MRU, they have a code-sharing agreement with MK to DXB and other destinations that MK don't service, such as CMB.
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 2:20 pm

Breathe wrote:
Another factor to take into consideration is that the Gov. of Mauritius have been very restrictive in terms of letting other operators use MRU. They own a majority stake in the airport and Air Maurtius (no conflict of interest there. :lol: ) Even with EK serving MRU, they have a code-sharing agreement with MK to DXB and other destinations that MK don't service, such as CMB.


Which operators have they been very restrictive with? Most bilateral agreements are underutilized.
 
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cougar15
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 2:27 pm

.. another one bites the dust! not much left of JH´s legacy, bet his new employer is looking forward to his strategies........
some you lose, others you can´t win!
 
oldannyboy
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 5:02 pm

toxtethogrady wrote:
DexSwart wrote:
The Seychelles could make a great connection point between Africa and Asia.

Maybe they should try and capitalise on this even more?


The Keflavik of the Indian Ocean? Not enough travelers, not enough interest...


...Except you might know I hope that the Seychelles are a MUCH bigger tourist destination that Iceland?....
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 5:33 pm

oldannyboy wrote:
...Except you might know I hope that the Seychelles are a MUCH bigger tourist destination that Iceland?....


Actually not, according wot the UN World Tourism Organization, Iceland had 1.8 million in-bound arrivals in 2016 while Seychelles only had 303,000. Add to that Iceland's bigger out-bound market due to a larger and much richer population.
 
SonOfABeech
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 5:45 pm

Isn't DXB (and to a lesser extent, AUH and DOH) already the Keflavik of the Indian Ocean, anyway?
 
berari
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 7:00 pm

evanb wrote:
Breathe wrote:
Another factor to take into consideration is that the Gov. of Mauritius have been very restrictive in terms of letting other operators use MRU. They own a majority stake in the airport and Air Maurtius (no conflict of interest there. :lol: ) Even with EK serving MRU, they have a code-sharing agreement with MK to DXB and other destinations that MK don't service, such as CMB.


Which operators have they been very restrictive with? Most bilateral agreements are underutilized.


Which bilateral agreements can you quote as being underutilized?
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Wed Jan 24, 2018 9:11 pm

berari wrote:
Which bilateral agreements can you quote as being underutilized?


Just picking some of the biggest markets to Mauritius

Australia: allows 7 weekly to each country, only 3 weekly utilized by Mauritius and none by Australia
China: allows 14 weekly to each country, only 2 weekly utilized by Mauritius and none by China
France: allows up to 16 weekly to each country to mainland France, only 7 weekly utilized by each country
Hong Kong: allows 7 weekly to each country, only 2 weekly utilized by Mauritius
India: allows up to 14 weekly by each country, only 7 weekly utilized by Mauritius, none by India
Malaysia: up to 14 weekly by each country, only 4 utilized by Mauritius, none by Singapore
Singapore: up to 14 weekly by each country, only 4 utilized by Mauritius, none by Singapore
UK: allows 14 weekly to each country, only 3 weekly utilized by Mauritius and 5 by UK

The only major source market which might be constrained is Germany where all are utilized on the German side. The South African bilateral has fixed seat capacity which is different but mostly underutilized.

In terms of the hub markets, Turkey is underutilized (5 of 7) while UAE is fully utilized.
 
berari
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Thu Jan 25, 2018 1:46 am

evanb wrote:
berari wrote:
Which bilateral agreements can you quote as being underutilized?


Just picking some of the biggest markets to Mauritius

Australia: allows 7 weekly to each country, only 3 weekly utilized by Mauritius and none by Australia
China: allows 14 weekly to each country, only 2 weekly utilized by Mauritius and none by China
France: allows up to 16 weekly to each country to mainland France, only 7 weekly utilized by each country
Hong Kong: allows 7 weekly to each country, only 2 weekly utilized by Mauritius
India: allows up to 14 weekly by each country, only 7 weekly utilized by Mauritius, none by India
Malaysia: up to 14 weekly by each country, only 4 utilized by Mauritius, none by Singapore
Singapore: up to 14 weekly by each country, only 4 utilized by Mauritius, none by Singapore
UK: allows 14 weekly to each country, only 3 weekly utilized by Mauritius and 5 by UK

The only major source market which might be constrained is Germany where all are utilized on the German side. The South African bilateral has fixed seat capacity which is different but mostly underutilized.

In terms of the hub markets, Turkey is underutilized (5 of 7) while UAE is fully utilized.


Do you know what the bilateral with Ethiopia is, if it exists? ET CEO was quoted as saying they are awaiting rights to begin new service.
 
evanb
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Thu Jan 25, 2018 4:42 am

berari wrote:
Do you know what the bilateral with Ethiopia is, if it exists? ET CEO was quoted as saying they are awaiting rights to begin new service.


All I can see is that there is a 2002 BASA between Ethiopia and Mauritius. No other details.
 
LH658
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Thu Jan 25, 2018 5:41 am

They can try Singapore, Kuala Lumpur, Colombo, Muscat, Perth, NBO, or South Africa... Just some wild suggestions.
 
grjplanes
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Thu Jan 25, 2018 8:03 am

LH658 wrote:
They can try Singapore, Kuala Lumpur, Colombo, Muscat, Perth, NBO, or South Africa... Just some wild suggestions.


Who are "They"...this thread has bounced between HM and MK a bit now...do you mean HM should try those routes?
For HM the only connecting flights will now probably for JNB and MRU to BOM...if the A330s are to be withdrawn I hope SEZ-JNB increase then to daily A320...as it is currently 5 weekly (3 x A330 and 2 x A320 mostly in off-peak times, more A330 in peak times)...which is mostly O&D traffic, don't think they really carried much connecting pax from JNB to CDG.

evanb wrote:
berari wrote:
Do you know what the bilateral with Ethiopia is, if it exists? ET CEO was quoted as saying they are awaiting rights to begin new service.


All I can see is that there is a 2002 BASA between Ethiopia and Mauritius. No other details.


I've wondered why ET have not yet launched MRU service, as it's probably one of the biggest remaining African markets they don't serve, and they're very well positioned for traffic from Europe and North America to MRU.
Perhaps this Indian Ocean destinations a bit of a niche that KQ might be picking up with their new JFK-NBO service for the high-end travellers from North America going to these islands...I think KQ codeshares with MK on NBO-MRU...then KQ also goes to SEZ, TNR, DZA, HAH, ZNZ
 
berari
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Fri Jan 26, 2018 4:59 pm

grjplanes wrote:
I've wondered why ET have not yet launched MRU service, as it's probably one of the biggest remaining African markets they don't serve, and they're very well positioned for traffic from Europe and North America to MRU.
Perhaps this Indian Ocean destinations a bit of a niche that KQ might be picking up with their new JFK-NBO service for the high-end travellers from North America going to these islands...I think KQ codeshares with MK on NBO-MRU...then KQ also goes to SEZ, TNR, DZA, HAH, ZNZ


ET only made its foray into the southern Indian Ocean islands market in recent times, by opening the route to Moroni (HAH) in 2016. It had been flying to Seychelles for many years already. It opened TNR last year, and is adding new service to Nosy-be (NOS) in the northern part of Madagascar. It looks like ET is seeing good results, as evidenced by increase in capacity on routes to HAH and TNR by operating the B788 instead of the B738, It's a matter of time before it goes into MRU. ET has also as a result converted its flights to CDG to terminator service, albeit operating with the B788 still. Its growth and success in these islands could see a bigger aircraft deployed to CDG.

KQ did find its niche in the area a few years ago, operating flights into DZA, HAH, and TNR. It used to fly up to daily into the islands albeit with just the E190, now it's only a few times a week while TNR gets double daily (also on E190.) KQ's service to the islands also seems pegged to connectivity with its flights to/from CDG.
 
timpdx
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sat Jan 27, 2018 3:16 am

Seychelles is really not seeking to be flooded with tourism. Its a rather expensive visit and they want to keep it that way. Certainly food and lodging is right up there with the most expensive places I've ever been. Like Moscow/London expensive.
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Cunard
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sat Jan 27, 2018 4:07 am

That's all well and done but AUH, DOH and DXB are not the Kevlavik's of the Indian Ocean regardless of the fact that they are all situated in the Arabian Gulf which is part of Indian Ocean as you rightly point out but Arabian Gulf leads through the narrow Strait of Hormuz towards the Gulf of Oman and into the Indian Ocean proper.

Distance wise it's similar to comparing Jamaica with the Cape Verde Islands both are in the Atlantic Ocean even though Jamaica is in the Caribbean Sea or the Gulf of Mexico even.
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VirginFlyer
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sat Jan 27, 2018 4:22 am

Cunard wrote:
That's all well and done but AUH, DOH and DXB are not the Kevlavik's of the Indian Ocean regardless of the fact that they are all situated in the Arabian Gulf which is part of Indian Ocean as you rightly point out but Arabian Gulf leads through the narrow Strait of Hormuz towards the Gulf of Oman and into the Indian Ocean proper.

Distance wise it's similar to comparing Jamaica with the Cape Verde Islands both are in the Atlantic Ocean even though Jamaica is in the Caribbean Sea or the Gulf of Mexico even.

My understanding of the role Keflavik plays is that it serves as a transfer point between two continents separated by the Atlantic Ocean. If Iceland were to be a sparsely populated continent the size of Australia, and Keflavik were located on the northern extremity of this fictional continent (along the coast of a fictional Arctic Ocean, and a long way away from a fictional smaller Atlantic Ocean), it would still serve the same role in terms of being a transit point between two points on opposite sides of the Atlantic Ocean, even though it wouldn't itself be on that ocean. What is special about Keflavik isn't the ocean it itself is in, but rather the way in which it can act as a natural transit point between destinations on opposite sides of that ocean.

Jamaica is an interesting example; for routes from Europe to South America it could make an interesting transit hub, although Barbados or Trinidad would be in even better locations for that.

From where I live (at the southern end of the Pacific Ocean), to get to Africa you need to cross the Indian Ocean. There are a handful of direct connections (South African through Perth, Qantas through Sydney), but by and large most traffic will transfer through hubs in Asia; a market which AUH/DXB/DOH have taken a significant chunk of in recent years. Their position also lends itself to connections between East Asia to Africa (points that connected directly would again require a transit of the Indian Ocean).

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It is not for him to pride himself who loveth his own country, but rather for him who loveth the whole world. The earth is but one country, and mankind its citizens. —Bahá'u'lláh
 
Blerg
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sat Jan 27, 2018 6:10 am

Cunard wrote:
That's all well and done but AUH, DOH and DXB are not the Kevlavik's of the Indian Ocean regardless of the fact that they are all situated in the Arabian Gulf which is part of Indian Ocean as you rightly point out but Arabian Gulf leads through the narrow Strait of Hormuz towards the Gulf of Oman and into the Indian Ocean proper.

Distance wise it's similar to comparing Jamaica with the Cape Verde Islands both are in the Atlantic Ocean even though Jamaica is in the Caribbean Sea or the Gulf of Mexico even.


Just a small correction, it's actually called the Persian Gulf.
 
Cunard
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sun Jan 28, 2018 12:30 am

But the use of the name of Persian Gulf is disputed with some countries and the use of Arabian Gulf is applied and long before that in the time of the Ottoman period it was known as the Gulf of Basra.

But we're digressing!
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Blerg
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Sun Jan 28, 2018 8:58 am

Cunard wrote:
But the use of the name of Persian Gulf is disputed with some countries and the use of Arabian Gulf is applied and long before that in the time of the Ottoman period it was known as the Gulf of Basra.

But we're digressing!


The usage of 'Arabian Gulf' was forced in the 1960s for political purposes which no different than the 'Gulf off Basra'. The Persian Gulf is the oldest and the most neutral term for the area. If it was the 'Iranian Gulf' then it would have been a whole different story.
 
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hma350
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Re: Air Seychelles to axe flights to Paris, announces business transformation plan

Tue Mar 06, 2018 6:08 am

The Seychelles Civil Aviation Authority has to protect our National Airline like Mauritius has. Air Seychelles was created at a time when all the major airlines pulled out of Seychelles due to low loads and now loads are high and Air Seychelles is being affected and not protected. As a result an excellent and unique product is being left by the wayside for scraps.

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