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Blerg
Topic Author
Posts: 4046
Joined: Tue Jan 09, 2018 11:42 am

Re: Updated: LH to restructucture SN

Mon Jul 27, 2020 6:30 am

We can discuss their potential in Africa as much as we want to but if the airline is unable to turn a profit then we have to wonder if it even has a future. In the end I think they will be shut down and replaced by Eurowings. Competition in Brussels is just too tough and they have shown that they don't have a answer how to respond to it.
 
RvA
Posts: 380
Joined: Tue Sep 15, 2015 12:37 pm

Re: Updated: LH to restructucture SN

Mon Jul 27, 2020 7:26 am

Blerg wrote:
We can discuss their potential in Africa as much as we want to but if the airline is unable to turn a profit then we have to wonder if it even has a future. In the end I think they will be shut down and replaced by Eurowings. Competition in Brussels is just too tough and they have shown that they don't have a answer how to respond to it.


Not for a while at least. The rescue conditions agreed with the govt I think made sure SN will survive with name, HQ in BRU etc. for some time to come I think?
 
Conti764
Posts: 62
Joined: Tue Dec 11, 2007 2:09 pm

Re: Updated: LH to restructucture SN

Mon Jul 27, 2020 8:20 am

Blerg wrote:
We can discuss their potential in Africa as much as we want to but if the airline is unable to turn a profit then we have to wonder if it even has a future. In the end I think they will be shut down and replaced by Eurowings. Competition in Brussels is just too tough and they have shown that they don't have a answer how to respond to it.


It's save to say SN in let's say a year or two will no longer be the SN it was untill recently. Ever since its founding it lacked a solid businessplan.

They struggled with the integration of VEX, they went for an unrealistic growth model, had their fair share of crises (financial crisis, ebola outbreak, 22/3 attacks, covid-19) and were forced in a failed project with Eurowings. And all that time, untill 2016, LH had little to no gain to invest more in SN than to keep it afloat.

LH gave them a chance to fight for themselves in june 2019, to prove they have another future in the Lufthansa Group, apart from Eurowings, albeit with a major restructuring plan, Reboot. And then Covid came.

It remains to be seen how SN will ultimately raise from the ashes once this crisis is over. At least now they've gotten a fihghting chance from LH. The fact that an agreement between the management and the unions was reached already before the deal between LH and the Belgian government was made proves that everybody at SN knows what they're up to.
 
Blerg
Topic Author
Posts: 4046
Joined: Tue Jan 09, 2018 11:42 am

Re: Updated: LH to restructucture SN

Mon Jul 27, 2020 2:15 pm

I understand all that but it seems that any local airline in Belgium is destined to be perpetually loss-making. I understand Sabena was differently run but the end result was still the same. All I'm saying is that maybe having a local legacy carrier sandwiched between Paris and Amsterdam, on top of having CRL and EIN in the same catchment area makes a locally based airline very difficult to run.

I know there is probably zero chances of this happening but could shutting CRL down be a wise step towards aviation consolidation in Belgium?
 
Conti764
Posts: 62
Joined: Tue Dec 11, 2007 2:09 pm

Re: Updated: LH to restructucture SN

Mon Jul 27, 2020 4:55 pm

Blerg wrote:
I understand all that but it seems that any local airline in Belgium is destined to be perpetually loss-making. I understand Sabena was differently run but the end result was still the same. All I'm saying is that maybe having a local legacy carrier sandwiched between Paris and Amsterdam, on top of having CRL and EIN in the same catchment area makes a locally based airline very difficult to run.

I know there is probably zero chances of this happening but could shutting CRL down be a wise step towards aviation consolidation in Belgium?


Since CRL is a showroom project and one of the little economic successes for the South of Belgium, hell would freeze before a closure would happen. BRU and SN are already considered Flemish companies by many in Walloonia.

And FR at CRL isn't really the problem. The FR market is one SN shouldn't go after, a mistake they already made with an unsustainable growth a couple of years ago. SN has to reposition itself in the class of LH and OS (I'll leave LX out of the equation) albeit with a smaller base to grow from. Make money, then grow. In the past they didn't always follow that logic. Build operational mass at the expense of profitability.

And a more aggressive aproach towards the competition. BRU is right in the middle of AMS and CDG from where KL and AF have quite some (near) monopoly routes to overseas territories and former colonies. Go after some of those routes. They won't disturb both giants operations of course, but if money can be made....
 
danipawa
Posts: 461
Joined: Sat Oct 01, 2016 1:18 am

Re: Updated: LH to restructucture SN

Tue Jul 28, 2020 1:11 am

Brussels Airlines (SN, Brussels National) will not reactivate its two A330-200s following the COVID-induced grounding and will also seek to retire its A319-100s in the coming years as it proceeds with its fleet restructuring and simplification plan, Chief Executive Dieter Vranckx told ch-aviation in a phone interview.

The airline plans to trim its fleet from the current 52 aircraft to 38.

https://www.ch-aviation.com/portal/news ... load-a319s

According to this, 5 A319 to be phase out too:

https://sites.google.com/site/lhgroupfleet/brussels
 
Blerg
Topic Author
Posts: 4046
Joined: Tue Jan 09, 2018 11:42 am

Re: Updated: LH to restructucture SN

Tue Jul 28, 2020 10:44 am

Ok, if two A330 and 5 A319 are to leave the fleet, does it mean other planes to be phased out are all A320s?

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