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mercure1
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Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 4:33 pm

With continued marginal financial state, Brussels Airlines under a plan, called “Reboot” seeks to become a more profitable airline in the next three years.

Today management in meeting with unions conveyed the message that the airline will become smaller in the coming years. Airline will look at the network and fleet. Destinations that are not profitable be scrapped and certain destinations may be flown less frequently in the future.
The support and administrative services on the ground, in particular, would be affected by job losses. The idea is to achieve more synergies within Lufthansa Group with some commercial operations that could be transferred.

Brussels Airlines to cancel destinations, shrink fleet and scrap jobs
https://www.aviation24.be/airlines/luft ... crap-jobs/

Brussels Airlines to encourage voluntary redundancies in response to low profits
https://www.brusselstimes.com/belgium/7 ... w-profits/

=

Seems after years of tinkering, SN is nowhere close the LH Group target for profitability.
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janders
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 7:08 pm

What happened with merging SN into Eurowings?
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usdcaguy
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 7:29 pm

So basically, merging with LH did nothing to help their situation. So sad that after all these years, SN cannot be self-sustaining. With Brussels seeing less O&D than many other cities, I can see where the difficulties may lie. I wish the best to the crew who will be losing their jobs.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 7:34 pm

BMI merging with LH didn't do a lot for BMI either....
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 7:38 pm

I wonder if the LH strategy of buying next door neighbor airlines has resulted in the LH group competing with themselves too much from a geographic standpoint.
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AF022
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 7:54 pm

What destinations are they considering, does anyone know? Are they talking Europe where LCC competition is tough or in Africa? Is JFK viable year-round?
 
Someone83
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 8:02 pm

janders wrote:
What happened with merging SN into Eurowings?


Cancelled a while ago
 
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Springbok743
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 8:25 pm

Maybe Etihad will buy them! :D
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 8:26 pm

I’m keen to know what they will do in S20 to DKR CKY ABJ BJL OUA ACC in particular.
 
AZa346
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 8:30 pm

BTW is it true that Czech Airlines is operating two of their A319s for Brussels Airlines flights??
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 8:46 pm

OzarkD9S wrote:
I wonder if the LH strategy of buying next door neighbor airlines has resulted in the LH group competing with themselves too much from a geographic standpoint.


I would assume so. But SN’s African routes are largely non-overlapping with the rest of LH group. I would say LX and OS have more overlap - they would have had a better role within IAG or AF-KLM groups. Sure Switzerland and Austria have their own markets, but to have very similar networks and hubs so close - not sure what the point is. On top of that you have LO in Star! And now they want to bring in AZ too.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 9:04 pm

I'd love to know what percentage of their short haul business is related to the political class? They're usually much less price sensitive
as they never pay for anything themselves. Lobbyists, advisors, the MEP's themselves, the buerocrats administering everything etc.
That there alone should create a lot of demand, however part of this would be tidal depending when Parliament sits.
 
330lover
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 9:11 pm

AZa346 wrote:
BTW is it true that Czech Airlines is operating two of their A319s for Brussels Airlines flights??


Yes.
OK-NEO & OK-NEP are operating for SN.
Mainly on the route BRU-BUD, where all flights are with these 2 birds.
Other destinations include PRG, TLS, NCE, VCE
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T4thH
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 10:08 pm

Was Bruessel air not also heavily flying for Thomas Cook?
As I know, the collapse of Thomas Cook was a bad kick into the part where it is painful...
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 10:08 pm

onwFan wrote:
OzarkD9S wrote:
I wonder if the LH strategy of buying next door neighbor airlines has resulted in the LH group competing with themselves too much from a geographic standpoint.


I would assume so. But SN’s African routes are largely non-overlapping with the rest of LH group. I would say LX and OS have more overlap - they would have had a better role within IAG or AF-KLM groups. Sure Switzerland and Austria have their own markets, but to have very similar networks and hubs so close - not sure what the point is. On top of that you have LO in Star! And now they want to bring in AZ too.


I think these are all fair points. LH group has basically built four hubs in central Europe to funnel people around the world. Those four work quite well together. It means LH can basically spread capacity, increase frequencies to destinations globally while also keeping a premium O&D market, in contrast to BA say who basically have to do X times a day from one hub, LHR. However, how much extra synergy can you continuously get by bolting on more hubs in close proximity to one another? The four main hubs they have (FRA, MUC, ZRH, VIE) are not even maxed out, and while BRU does have a unique point on the legacy African routes, they are not big high volume/high yielding routes. Contrast this to IAG which has a stranglehold on LHR with lucrative O&D and MAD, geographically a fair further geographical distance away with its LATAM connections.

In fairness to LH management this is probably the most sensible way forward. The merger into Eurowings was always going to be a ridicules notion, and so they've looked at it, and found they can do the usual big routes to most of the world from their other 4 hubs where they have acres of capacity and can use SN for the historic African routes for the group. Everything else is superficial drain on a balance sheet, and unfortunately that means capacity cuts.

The fact O&D from BRU is not stronger also surprises me, but this unit has been struggling for a long time.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 10:30 pm

Springbok743 wrote:
Maybe Etihad will buy them! :D

Ouch, the new a.net curse: "May Etihad buy your employer."


Lightsaber
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MIflyer12
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 10:39 pm

From the OP's first linked article:

Indeed, the average profit margin is currently around 0 percent and for an airline that is not a healthy situation.

Continuing that fine tradition of Belgian aviation.

Swissair's partner Sabena had made money only twice in its 78-year history.

https://www.forbes.com/global/2001/1210 ... 9649921967
 
juliuswong
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Wed Oct 23, 2019 10:51 pm

Seems like all those plan to induct "new" A333, retiring old A330ceo, used A320 family, same seat manufacturers across LH Group fleet and host of other standardisation can't seem to squeeze out profit in SN.
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 1:12 am

juliuswong wrote:
Seems like all those plan to induct "new" A333, retiring old A330ceo, used A320 family, same seat manufacturers across LH Group fleet and host of other standardisation can't seem to squeeze out profit in SN.

I think they were also hit hard by the collapse of MT as they were doing a fair bit of flying for them or having their pax filling the seats.

Michael
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 1:57 am

Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.
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philabos
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 2:30 am

I too am surprised with EU and NATO staff in Brussels numbering about 40,000, mostly EU, SN has done done better.
I suppose most fly their own national airlines instead of SN. One would think those staffs have a significant travel budget.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 2:42 am

DL747400 wrote:
Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.


From a destinations point of view, AF/KL already covers the vast majority of what SN covers plus much more. The exceptions, I believe, are BJL and BJM. However, if SN does end up reducing some Africa service, I'm sure AF in particular will look at upping frequency/capacity opportunistically.
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330lover
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:06 am

DL747400 wrote:
Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.


I think the route cuts will be entirely European routes. Dropping some tourist 'sun destinations' which are only operated 1-2x per week, or reducing frequencies here and there.
Like: is it really necessary from BRU to fly up to 6x daily to GVA or 5x to TXL (just to name 2).

The routes to Africa probably will remain, maybe some reshuffeling here and there, but these have been the most lucrative part of their operations (AFAIK).
As for US/Canada, makes sense to let the partners operate these routes, after all, it's the same JV. UA can cover (already does) New York, Washington, Chicago and leave YUL & YYZ to AC.
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Blerg
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:46 am

If any Belgian airline could have become profitable then that would have been SN Brussels. They didn't in the end.

What happens when they shrink? What happens when they reduce frequencies and destinations? They might reduce their costs but equally so they would reduce their competitiveness and revenue. They are just doing a favor to their competitors.

It might be me but I never quite understood what their brand and selling point were? Let's say I'm flying from MUC to BRU, why should I pick them over LH? If the price is the only difference then they have their answer to why they are here today. At least Lufthansa, Swiss and Austrian have strong links to the markets they serve, from small things like LX serving Swiss chocolates before landing or Austrian serving Almdudler or playing Mozart during boarding or Lufthansa having their Munich crew wear traditional Bavarian clothes during Oktoberfest. What does SN have that makes them stand out? To me they are very forgettable.

This whole situation looks like LH giving them three years to turn things around before they put an end to them. By then there will be fewer employees, less union members, smaller fleet... so it will be a much smaller business to manage than what it is today. After all, SN did protest a merger with EW because they thought they could run their own show. Well, they have another three years to show what they can do before LH moves in.

From what I can see, this winter season they are already suspending two destinations: Nantes and Kiev.

Ljubljana is being added but that's only because Adria Airways went bankrupt. I wonder if it makes sense to serve both LJU and ZAG given their bad financial performance.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:16 am

usdcaguy wrote:
So basically, merging with LH did nothing to help their situation. So sad that after all these years, SN cannot be self-sustaining..

The bonehead decision to try and pretend that Brussels Airlines was a LCC certainly didn't help. A lot of time wasted using the airline to sustain a vanity project. Dare I mention the carrier was profitable before Lufty took control?

OzarkD9S wrote:
I wonder if the LH strategy of buying next door neighbor airlines has resulted in the LH group competing with themselves too much from a geographic standpoint.

For the short-haul possibly. For the long-haul, destinations and frequencies are coordinated at the group level. Brussels Airlines is in fact responsible for Africa network strategy and sales for all airlines in the Lufthansa Group.

330lover wrote:
The routes to Africa probably will remain, maybe some reshuffeling here and there, but these have been the most lucrative part of their operations (AFAIK).
As for US/Canada, makes sense to let the partners operate these routes, after all, it's the same JV. UA can cover (already does) New York, Washington, Chicago and leave YUL & YYZ to AC.

Africa is where most of the profit comes from. Other than some tinkering at the edges, it is not where changes will be made.
JFK is a tough situation. BRU-NYC is very competitive, however many passengers from Africa want to fly to JFK, and will move to Air France, KLM, or another carrier rather than fly to EWR. This is what is keeping BRU-JFK alive... for now.
Brussels Airlines is in the A++ alliance with Air Canada and United. They share revenues and costs. If a route is profitable, it is profitable for all the members of the joint-venture.
Splitting YUL and YYZ between Air Canada and Brussels Airlines makes sense. YUL needs an A330 and the Air Canada fleet is in high demand right now (so much so the last A330s they acquired from Singapore Airlines were put in service with only minor modifications to the cabins). YYZ on the other hand needs a smaller aircraft, that Brussels Airlines does not have...
As for IAD, Brussels Airlines recently made the flight year-long. I'm guessing/hoping that means it is profitable. I suppose United could take over both frequencies, with perhaps two 777s on some days and a single 773 on others...
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:17 am

usdcaguy wrote:
So basically, merging with LH did nothing to help their situation.


At least it has survived. I might not have without.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:21 am

Lufthansa wrote:
I'd love to know what percentage of their short haul business is related to the political class? They're usually much less price sensitive
as they never pay for anything themselves. Lobbyists, advisors, the MEP's themselves, the buerocrats administering everything etc.
That there alone should create a lot of demand, however part of this would be tidal depending when Parliament sits.


My experience on EU is that you have to make a thorough round of requests for bids for every pencil you buy and make a long report justifying that you really chose the cheapest pencil. Why should flights be any different? Maybe higher ranks are different, but they are not that many.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:33 am

330lover wrote:
DL747400 wrote:
Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.


I think the route cuts will be entirely European routes. Dropping some tourist 'sun destinations' which are only operated 1-2x per week, or reducing frequencies here and there.
Like: is it really necessary from BRU to fly up to 6x daily to GVA or 5x to TXL (just to name 2).


I guess GVA might actually bring a lot of profits even with 6x daily. Brussels and Geneva are the diplomatic capitals of Europe. NATO and EU in Brussels and UN and Red Cross (and a lot of other institutions) in Geneva. So that frequency might actually bring revenue on every single trip.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:58 am

YIMBY wrote:
Lufthansa wrote:
I'd love to know what percentage of their short haul business is related to the political class? They're usually much less price sensitive
as they never pay for anything themselves. Lobbyists, advisors, the MEP's themselves, the buerocrats administering everything etc.
That there alone should create a lot of demand, however part of this would be tidal depending when Parliament sits.


My experience on EU is that you have to make a thorough round of requests for bids for every pencil you buy and make a long report justifying that you really chose the cheapest pencil. Why should flights be any different? Maybe higher ranks are different, but they are not that many.


Yes but there is another group of travelers... government officials from member states who don't have to do it and who usually overpay their tickets :D
 
YIMBY
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 7:33 am

Blerg wrote:
YIMBY wrote:
Lufthansa wrote:
I'd love to know what percentage of their short haul business is related to the political class? They're usually much less price sensitive
as they never pay for anything themselves. Lobbyists, advisors, the MEP's themselves, the buerocrats administering everything etc.
That there alone should create a lot of demand, however part of this would be tidal depending when Parliament sits.


My experience on EU is that you have to make a thorough round of requests for bids for every pencil you buy and make a long report justifying that you really chose the cheapest pencil. Why should flights be any different? Maybe higher ranks are different, but they are not that many.


Yes but there is another group of travelers... government officials from member states who don't have to do it and who usually overpay their tickets :D


In every democratic country any person below minisitrial level working for the public sector has to justify the expenses very carefully, at least legally. Practices may vary as some countries are more corrupted than others. What is overpayment, is another issue, but sometimes the government rules for purchasing may be so complicated that it necessarily leads to suboptimal spending, and contracts between employees' and employers' unions may pose other limits. The latter are not limited to public sector.
 
Blerg
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 7:48 am

YIMBY wrote:
Blerg wrote:
YIMBY wrote:

My experience on EU is that you have to make a thorough round of requests for bids for every pencil you buy and make a long report justifying that you really chose the cheapest pencil. Why should flights be any different? Maybe higher ranks are different, but they are not that many.


Yes but there is another group of travelers... government officials from member states who don't have to do it and who usually overpay their tickets :D


In every democratic country any person below minisitrial level working for the public sector has to justify the expenses very carefully, at least legally. Practices may vary as some countries are more corrupted than others. What is overpayment, is another issue, but sometimes the government rules for purchasing may be so complicated that it necessarily leads to suboptimal spending, and contracts between employees' and employers' unions may pose other limits. The latter are not limited to public sector.


The last time I checked Slovenia is a democratic country yet its government used a contract for BRU flights to pump 4.5 million Euros into its national carrier...which eventually went bankrupt.

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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:17 am

blueflyer wrote:
usdcaguy wrote:
So basically, merging with LH did nothing to help their situation. So sad that after all these years, SN cannot be self-sustaining..

The bonehead decision to try and pretend that Brussels Airlines was a LCC certainly didn't help. A lot of time wasted using the airline to sustain a vanity project. Dare I mention the carrier was profitable before Lufty took control?

That makes the situation at SN when Lufthansa group took over sound better than it was. SN has been profitable twice in it’s history (that’s as many years as Sabena, I’ll give them they needed less time to achieve that :lol:) and made a loss overall. They wouldn’t have survived without Lufthansa.
 
Noshow
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:20 am

So where do they make money, if there are any routes? There must be high yield passengers to Brussels from somewhere. Which routes in Africa are in fact profitable for them? What are the biggest loss makers for SN?
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:22 am

eurotrader85 wrote:
The fact O&D from BRU is not stronger also surprises me, but this unit has been struggling for a long time.

BRU is a 30 MLN pax airport where transit is not that important since the demise of Sabena almost 20 years ago.
It is highly competitive with most no-frills carriers present and with heavy EK, EY, QR, TK presence.
There are also flights to few China cities, HK, Japan & Thailand. There are flights to IAD, JFK,ORD, EWR, ATL, YUL and YYZ.
There is competition from a no-frills airport in CRL with 10 MLN pax and entrenching on longhaul with Air Belgium.
There is competition from regional airports in ANR, OST, LLG inside the country for leisure and business traffic and with small or large airports near the border in DE, FR, LU and NL.

SN's marketshare at BRU is way below the 50% (closer to 30% I think) and that's one of their problems.
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Last edited by brightcedars on Thu Oct 24, 2019 9:24 am, edited 2 times in total.
 
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:22 am

Blerg wrote:
It might be me but I never quite understood what their brand and selling point were? Let's say I'm flying from MUC to BRU, why should I pick them over LH?


BRU-MUC strange choice, given that this became a (very expensive) LH monopoly route after the merger, where LH is shoveling in excess profits and SN probably gets nothing.

With a parent like this, you don't need enemies/competitors.


And in case you didn't notice, their brand is about Africa.
 
Blerg
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:28 am

HaulSudson wrote:
Blerg wrote:
It might be me but I never quite understood what their brand and selling point were? Let's say I'm flying from MUC to BRU, why should I pick them over LH?


BRU-MUC strange choice, given that this became a (very expensive) LH monopoly route after the merger, where LH is shoveling in excess profits and SN probably gets nothing.

With a parent like this, you don't need enemies/competitors.


And in case you didn't notice, their brand is about Africa.


I did notice but I also noticed that their 'African brand' is just not enough to keep them going.

As for MUC-BRU it was just an example, you can take any other route they operate where they face competition like ZAG-BRU or BUD-BRU.
 
Noshow
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 9:30 am

So exactly what african routes bring the money? Where do they make their losses? To just carry on seems to not be an option if they don't make a profit?
They must have some excellent operational know-how so that should be very useful within the LH group if I look a those desperate chaotic Eurowings long range operations.
 
AF022
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 4:54 pm

Are they really making any money to Anglophone places like FNA, BJL and EBB?
 
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eta unknown
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:20 pm

Well Sabena never made any money flying to JFK so I was surprised Brussels Airlines relaunched the route. Are the African routes not so profitable any more that they now need JFK/IAD feed?
 
330lover
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:22 pm

FluidFlow wrote:
330lover wrote:
DL747400 wrote:
Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.


I think the route cuts will be entirely European routes. Dropping some tourist 'sun destinations' which are only operated 1-2x per week, or reducing frequencies here and there.
Like: is it really necessary from BRU to fly up to 6x daily to GVA or 5x to TXL (just to name 2).


I guess GVA might actually bring a lot of profits even with 6x daily. Brussels and Geneva are the diplomatic capitals of Europe. NATO and EU in Brussels and UN and Red Cross (and a lot of other institutions) in Geneva. So that frequency might actually bring revenue on every single trip.


Well, after posting, I thought exactly the same about this specific route, maybe not a very good example after all...
BRU-GVA v/v must be an important diplomatic route.
But it was just an example, there are some other, multiple daily routes which certainly could to with a rotation less...
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330lover
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:33 pm

AF022 wrote:
Are they really making any money to Anglophone places like FNA, BJL and EBB?


I suppose so
FNA for instance: they were the only airline not to suspend flights during the Ebola crisis, so I imanige it must be lucrative to keep on operating.
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LAXintl
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 5:47 pm

I have to say I admire LH Group for holding its subsidiary carriers' feet to the fire. They must earn their own way and earn their right for investment from the group. Look at OS which has had to earn the right to receive new modern widebodies before the group would invest.

As far as BRU, having the EU and NATO headquarters does not mean some magical amount of business traffic. Much of the government traffic either travels on their own national airlines, or due to way government contracting works is often awarded to lowest bidders including LCCs like Easyjet.

A market like AMS has far more overall business demand versus BRU thanks to Hollands diverse industry clusters, historical trade-driven economy and being base for many multinational companies. BRU region has largely ended up being a leisure market with strong LCC penetration which makes it hard for legacy operation.
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:07 pm

LAXintl wrote:
As far as BRU, having the EU and NATO headquarters does not mean some magical amount of business traffic. Much of the government traffic either travels on their own national airlines, or due to way government contracting works is often awarded to lowest bidders including LCCs like Easyjet.

A market like AMS has far more overall business demand versus BRU thanks to Hollands diverse industry clusters, historical trade-driven economy and being base for many multinational companies. BRU region has largely ended up being a leisure market with strong LCC penetration which makes it hard for legacy operation.


:scratchchin:

If this is the case maybe the idea of turning SN formally into Eurowings LCC concept was not so far fetched.
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Thibault973
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:19 pm

eurotrader85 wrote:
while BRU does have a unique point on the legacy African routes, they are not big high volume/high yielding routes. Contrast this to IAG which has a stranglehold on LHR with lucrative O&D and MAD, geographically a fair further geographical distance away.

The fact O&D from BRU is not stronger also surprises me, but this unit has been struggling for a long time.


Routes from Europe to Africa are VERY high yielding. In fact over at AF, 9 out of 10 best performing route are to points in Africa with their CDG-LAD being their best performer, a sector they only fly 3 times a week. We had a group of 10 people flying to ABJ on AF for a UN meeting this week, fare in Y was 3850€ and 5900 in J.
 
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mercure1
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:22 pm

DL747400 wrote:
Depending on what destinations SN is reducing or dropping, could be some significant opportunities in Africa for AF/KL.


Very unlikely. AF will see changes coming to its Africa network. Only few weeks ago new CEO Ben Smith said Africa network "made no sense"

Too much is left from legacy days and operated for colonial nostalgia.

I suspect only one doing very well in Africa from Europe these days is Turkish with its 40-odd destinations and ability to service many with lower cost narrowbodies.
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mercure1
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:24 pm

Thibault973 wrote:
Routes from Europe to Africa are VERY high yielding. In fact over at AF, 9 out of 10 best performing route are to points in Africa with their CDG-LAD being their best performer, a sector they only fly 3 times a week. We had a group of 10 people flying to ABJ on AF for a UN meeting this week, fare in Y was 3850€ and 5900 in J.


And Africa has incredible high operating cost - from fuel, airport fees, handling, taxes, security etc.

Don't assume its all profitable for AF. You will see the changes coming.
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Thibault973
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:35 pm

mercure1 wrote:
Thibault973 wrote:
Routes from Europe to Africa are VERY high yielding. In fact over at AF, 9 out of 10 best performing route are to points in Africa with their CDG-LAD being their best performer, a sector they only fly 3 times a week. We had a group of 10 people flying to ABJ on AF for a UN meeting this week, fare in Y was 3850€ and 5900 in J.


And Africa has incredible high operating cost - from fuel, airport fees, handling, taxes, security etc.

Don't assume its all profitable for AF. You will see the changes coming.


All true, they are indeed suffering more and more as competition grows, especially from ET and TK. Still, most of their network in Africa is profitable while Asia is their weakest link.
 
goosebayguy
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 6:50 pm

Without Brussels Airlines would Brussels airport survive?
 
WingsOfLove
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 7:11 pm

Thibault973 wrote:
Routes from Europe to Africa are VERY high yielding. In fact over at AF, 9 out of 10 best performing route are to points in Africa with their CDG-LAD being their best performer


Can you back that up?

Traditionally carriers have done well in former colonies, but with lower cost 1 stop competition not so much.
 
Thibault973
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Re: Brussels Airlines seeks cost cuts, drop destinations, shrink fleet and jobs

Thu Oct 24, 2019 7:32 pm

WingsOfLove wrote:
Thibault973 wrote:
Routes from Europe to Africa are VERY high yielding. In fact over at AF, 9 out of 10 best performing route are to points in Africa with their CDG-LAD being their best performer


Can you back that up?

Traditionally carriers have done well in former colonies, but with lower cost 1 stop competition not so much.


I work for the French parliament and as Air France is still partly owned by the French Government, AF top management still has to answer before both houses. Couple of years ago, we were sent documents about the financial state of the airline and I remember one graph showed the top 10 performing routes, #1 was LAD and the only non African route was ORY-CAY (which apparently became unprofitable and is now back to being profitable again for AF).

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