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egph
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Loganair Franchise Deal

Fri Jan 16, 2015 5:55 pm

Hi guys,

I'm going to ask a really silly newbie type question here so bear with me please. Essentially with the FlyBe/Loganair franchise deal and the BA one before it, what does Loganair get out of it and what does FlyBe get out of it. I mean as I understand it, the planes and the staff are Loganair's so why not go it alone? I know there must be a good reason why Loganir can't go it alone but what's in it for each party?

Again sorry if this seems a bit of a silly question!

Regards

EGPH
 
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RE: Loganair Franchise Deal

Fri Jan 16, 2015 6:12 pm

Quoting EGPH (Thread starter):
what does Loganair get out of it


Presumably more traffic and revenues. Association with a well-known brand. Distribution.

Quoting EGPH (Thread starter):
what does FlyBe get out of it.

Income from Loganair for using its brand and distribution system.
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smbukas
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RE: Loganair Franchise Deal

Fri Jan 16, 2015 6:16 pm

Distribution, branding and connectivity - that's what Loganair is getting from flybe as the first one, I would say being most important. It is difficult for small airlines to invest to all distribution systems, web engines, participate in all GDSses and be a member of BSP of all important markets. So flybe sells what they have to Loganair and Loganair do not need to spend resources on sales and marketing.
 
Baexecutive
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RE: Loganair Franchise Deal

Sat Jan 17, 2015 11:52 am

They have the best of both worlds now, both regional (Flybe) and worldwide (BA) coverage..

They still operate in their own colours with the BN Islanders on inter island services between Orkney/Shetland.
 
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sassiciai
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RE: Loganair Franchise Deal

Sat Jan 17, 2015 2:20 pm

Quoting baexecutive (Reply 3):
They still operate in their own colours with the BN Islanders on inter island services between Orkney/Shetland.

Are you sure of the service between Orkney and Shetland? With the BN Islanders, they do the inter-island flying within the Orkney islands which I have had the pleasure to enjoy, but I'm unaware of any Loganair link to Shetland. I think that must be FlyBe itself
 
skipness1E
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RE: Loganair Franchise Deal

Sat Jan 17, 2015 3:23 pm

Quoting sassiciai (Reply 4):
but I'm unaware of any Loganair link to Shetland. I think that must be FlyBe itself

It's Loganair but operated under the franchise as flybe.
 
Humberside
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RE: Loganair Franchise Deal

Sat Jan 17, 2015 8:05 pm

I think Loganair used to operate the internal Shetland (and Fair Isle) flights under their own brand in the past, but Directflight currently have that contract
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Baexecutive
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RE: Loganair Franchise Deal

Sat Jan 17, 2015 9:28 pm

Quoting sassiciai (Reply 4):

Sorry, my mistake.

Quoting Humberside (Reply 6):

Thanks v much for that, interesting to know.
 
egph
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RE: Loganair Franchise Deal

Sun Jan 18, 2015 9:31 am

Thanks guys for your interesting answers  
 
vv701
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RE: Loganair Franchise Deal

Sun Jan 18, 2015 12:43 pm

The franchisor obtains additional business for its own flights. So, for example, Comair in South Africa trading as British Airways feeds traffic onto BA's own CPT- and JNB-LHR flights from other RSA domestic locations such as DUR and PLZ as well as from elsewhere in Southern Africa such as HRE and WDH. So today BA parks its aircraft operating to the RSA all day at either CPT or JNB. Before Comair was appointed a franchisee BA operated a probably uneconomic, add-on 744 flight between JNB and DUR . This may have been necessary to obtain contracts with both government and commercial organisations that would otherwise have been exclusive to SA.

BA also take a small proportion of the Comair operating as BA sales revenue. My (possibly faulty) recollection is that this may be 6 per cent of the total revenue.

The franchisee gets to present itself to potential and actual customers as if it were the franchisor, in this case British Airways. So Comair is a oneworld associate trading under the BA brand. Indeed if you book a ticket on-line for a Comair operating as British Airways flight you will book it on the British Airways web site. So Comair does not need to maintain its own site.

This sort of relationhip and other factors such as its passengers using facilities like BA's airport lounges as well as obtaining Avios FF points help to explain the charge of what might be 6 per cent.
 
Luftymatt
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RE: Loganair Franchise Deal

Sun Jan 18, 2015 1:37 pm

Quoting EGPH (Thread starter):
Again sorry if this seems a bit of a silly question!

It's not a silly question at all. Some of these franchise agreements airlines have are a bit confusing, and can appear random sometimes.

As others have said on here with the Loganair/ Flybe tie up, it's one of the ones that makes more sense  
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