Beruflich Dokumente
Kultur Dokumente
At last but not least, Air Scoop is proud to announce it will be me- Air Scoop - In the Air
dia partner of the main LCCs’ European events:
- 2nd Air Transport Conference for CSEE (4th of May 2007) – Bra- Plovdiv
tislava (EastEuroLink) Airport
- Low Cost Air Transport Summit (13th and 14th of June 2007) openning?
– London (MarketForce)
- World Low Cost Airlines Congress (17th to 19th of September
2007 – London (Terrapinn)
Air Scoop will of course cover all these events starting next month
with French Connect (25th to 27th of April 2007) in Nantes - La
Baule Atlantia.
Could you please present FlyMe to current trend and size of the airline,
our readers? What are your specifi- the financial results will improve and
cities compared to other European profits are expected from the second
LCCs? What do you do better than quarter of 2007.”
your competitors?
How do you analyze the compe-
“ FlyMe Sweden was founded in 2003 tition in Sweden, especially with changes in the market and competi-
and started its commercial flights in Ryanair with its base in Stockholm? tive actions”
April 2004. The business model was Which LCC is for you the main
to operate a limited number of do- competitor? What are your expansion projects
mestic flights plus charter flights. The for the coming year(s)?
utilization was very low, approx 4 “The LCC airlines are taking more and
hours per aircraft /day. FlyMe Swe- more market share but also growing “FlyMe will continue to grow and gra-
den is owned 100% by FlyMe Eu- the market by being able to offer at- dually increase its network between
rope AB which is traded on the First tractive fares and thus enable more Stockholm and Euope as well as Mal-
North at the Stockholm Exchange. people to fly. The important thing is mö and Europe. Furthermore, flights
New owners and a new Board of to keep very tight cost control as ul- on intra-Scandianvian sectors will also
Directors took over in August 2005 timately the one with the lowest unit be introduced. FlyMe Europe has an-
and it was decided to turn FlyMe cost will be the winner” nounced the purchase of 51% of Ri-
Sweden into a true LCC airline by ver Don, which owns 51% of Global
investing in the FlyMe brand. Num- Why did you choose Gothenburg as Supply Systems. The transaction is
ber of frequencies were increased on your main base? What are the ad- conditioned by necessary approval by
the domestic routes and 12 new Eu- vantages to be there? the British Civil Aviation Authorities
ropean destinations were introduced as well as an endorsement from the
from Gothenburg from the Summer “Gothenburg has historically been an General Assembly of FlyMe Europe.
2006 traffic program. FlyMe present- underserved area. The national car- Global Supply System is a profitable
ly operates a fleet of 5 leased aircraft rier, SAS, offered very few non-stop 747-400 cargo operator today and has
(4 Boeing 737-300 and 1 Boeing 737- services to and from Gothenburg the potential to partly develop the
500). From the Summer 2007 traffic trying to channel as much traffic a existing cargo business but could also
program the fleet will be increased to possible via its main hub in Copen- serve as a platform for the introduc-
7 aicraft (6 737-300 and 1 dampleased hagen. Consequently, there was an tion of long haul LCC in due time.
MD87). The domestic operation has untapped potential in Gothenburg A project is looking into this exciting
been increased in terms of frequen- and its catchment area; stretching possibility right now. A proposal or
cies and FlyMe has achieved a market also far into Norway.” recommendation will be made to a
share of 34% on the route between General Assembly by the 28th of Fe-
Gotehnburg and Stockholm/Ar- The European Low cost carriers bruary 2007.”
landa and 38% between Malmö and market has reached a certain ma-
Stockholm/Arlanda. European des- turity which leads to its consolida- Many LCCs look after extra-reve-
tinations have been introduced from tion. During this transition, what nues to offset the low price of their
Stockholm in November (Alicante are, for you, the greatest threats to tickets. What are the projects of Fly-
and Nice) and more will be added the European Low cost carriers? Me in terms of Extra-revenues?
from Summer 2007 when also Malmö Fuel rising? Overcapacity? Evo-
will have flights to European destina- lution of airports? Regulation?... “Ancillary revenue is very important.
tions. Stockholm-Luleå will be added FlyMe is presently strengthening this
on the domestic route net. FlyMe “Overcapacity and lack of airport part and will put in a lot of efforts
expects to carry around 1.5 million slots pose the biggest challenge. in 2007 to substantially increase re-
passengers in 2007 and the growth Again, it is important to monitor the venues from non-airline products.
in turnover will in principle double cost base continuously and also the The website is being up-dated and
from 2006. FlyMe is financed throu- traffic program in terms of frequen- ancillary services presented more at-
gh equity and has therefore posted cies and destinations. A high degree tractively and efficiently. It is a most
losses in the build-up phase. With the of flexibility is needed to respond to prioritized area”
UP & DOWN
The Nordic sky has always been a tough place for airlines Blue1 succeeded in finding its own way in business tra-
where “the survival of the fittest” law can be applied vi- vel niche-market. It has elaborated a certain strategy ad-
vidly. What survives – survives and goes on holding posi- dressed to short business travel segment. Not only fares
tions. Blue1 entered the market after two previous brands were reduced but several facilities added that made Eco-
had failed (Air Bonita and Flying Finn) and managed to nomy Flex a business-like class with the features requi-
evolve into the second largest airline in Finland. red: fast check-in, front seats and special meal offers. The
company has recently introduced brand-new tariff sche-
Under its name Blue1 was launched in 2004 after tender me with three types of fares: WebSaver with the lowest
call for the re-branding, which was won by SAS. The prices possible without any re-fund permitted; BestBuy
carrier started operating flights to those destinations that with higher prices but with the possibilities of rebooking;
had previously been served by Flying Finn but more suc- and FullFlex with flexible conditions of rebooking and full
cessfully. Though Blue1 is positioned as an individually refund. Such a variety of choices means that the airline is
branded airline appealing in its colour scheme (white and oriented both towards “usual” low-cost passengers and to
blue) to Finnish identity it is strongly backed up by SAS people with higher demands. This has a good impact on
group. Apparently it was that good fellowship with SAS the carrier’s image bringing it closer to a full service airline
that helped Blue1 to become the first regional airline to than to a no-frill one.
join Star Alliance in 2004. At the moment Blue1 is code
shared with SAS but it can also fulfill the task in getting But still there are some fields where Blue1 can’t beat Fin-
regional passengers feed into other airlines within the al- nair in the nearest future: Russia, for example. Though
liance. On the other hand, Blue1 passengers can enjoy the the LCC has initiated consultative sessions with Russian
full range of Star Alliance facilities: EuroBonus program- aviation authorities regarding flight permission to start
me, through check-in and lounges. operation regular flights to Moscow; it is unlikely that
Finnair will concede its monopoly in the region.
“1” in the name stands for the fastest developing airline
in Finland and probably the first national airline to chal- According to Blue1 web-site, the main goal is to become
lenge Finnair. With its new 11 international destinations “the best regional airline for the North European business
opened in 2006 Blue1 has to some extend undermined and leisure traveller.” And there are just two steps left to
Finnair’s position. This also intensified overall competi- achieve this. In September 2006 Blue1 was voted the third
tion in Scandinavia and led to response from other airlines best regional carrier in Europe by the European Regions
such as Sterling. Danish LCC made an attempt to create Airline Association. No wonder the award would foster
its sixth base in Helsinki serving 11 destinations. But the further development and expansion. But as long as it is
story was short and the project was terminated almost 4 Finnish the airline doesn’t disclose its plans preferring to
months after, leaving Blue1 one of the largest operators develop quietly without unnecessary excitement in order
between Finland and Scandinavia. to show then great results at once.
EVENTS
The 4th French Connect takes place on 25-27th April 2007 in La Baule. This unique event offers you the op-
portunity to network with some of the most influential people in European Low Cost aviation.
French airports, the legislators and Europe’s low cost operators all in one place with first-class conference faci-
lities, superb hotels and dining and a relaxed, entertaining business environment : book your place today!
For further information, please check www.frenchconnect.net
ANALYST PORTHOLE
Was Thomas Cook’s and My Travel’s merger
the right outcome?
Everybody knows the packaged holiday tour business has
been ripe for consolidation for some time. There were no
surprises when First Choice put their mainstream business Cook & My Travel Presentation.» The analysis shows it was
up on the block. Soon the suitors were circling like 30-so- a good move for both companies. Read on and reflect - re-
methings at a speed dating party. Thomas Cook was hot, sults for the entire industry are also included on our chart
My Travel was ready to rumble and even Kuoni and Vir- and clearly, there are still plenty of merger and acquisition
gin were strutting their stuff. opportunities out there.
So it was quite a surprise when Thomas Cook caught My ...so make sure you pick the right partner by considering
Travel’s eye across the crowded dance floor and announced the consumer ownership perspective as well as the finan-
they were an item! Was this unexpected outcome an op- cials !!!!
portunistic «grab it now» that could be a ‘synergy trap’ as
some industry experts have observed....or a carefully thou-
ght through plan?
At the beginning of 2007, the LCC Austria has only two small LCCs. Air Berlin – Niki, Flybe, RyanAir,
headlines in Austria were dominated The first one, InterSky, is based at TUIfly, SkyEurope, Norwegian, Aer
by... a Slovakian company, SkyEuro- the German Friedrichshafen airport, Lingus, Transavia...), new routes
pe. For two reasons: first, two Aus- a few miles away from the western to Manchester and several German
trian businessmen, Ronny Pecik and Austrian border. It operates three cities will open in 2007. In Graz
his partner Georg Stump, took over small aircrafts to 13 destinations. The (Niki, Condor, InterSky, RyanAir,
16,5% of the Bratislava-based com- second one is Niki, the company of TUIfly), news routes to Palma de
pany, quoted on the Vienna Stock the former formula-one champion Mallorca and Berlin are planned. In
Exchange. Thus, they challenged the Niki Lauda, created in november Innsbrück, Transavia recently ope-
other big SkyEurope investor, the 2003. It owns six aircrafts, and car- ned a route to Rotterdam and TUI-
American hedgefond York (23% of ries more than one million passen- fly to Köln. Linz (RyanAir, TUIfly,
the shares). gers per year. Air Berlin - Niki) will be connected
with Köln in March. RyanAir and
Secondly, at the end of March, Niki could not exist without its TUIfly also serve the smallest low-
SkyEurope will land at the Vienna German « big brother », Air Berlin. cost airport in Austria, Klagenfurt.
Airport for the first time ever. In The German leader and third biggest Among the important European
2007, the LCC will open 16 new LCC in Europe owns 24% of Niki, LCCs, only easyJet is absent in the
destinations from Vienna to Hol- which is, in fact, its « affiliated com- country. Its route to Bratislava was
land, Greece, Spain, Belgium, Italy, pany » in Austria. Niki operates fli- suppressed in 2006.
France, Romania, Bulgaria, Cyprus ghts from Vienna to Air Berlin’s hubs
and Croatia, and also an internal (Palma de Mallorca, Nürnberg...), Most of the LCCs in Austria fly to
route to Innsbrück. This year, the from where the German LCC brings Germany, Great Britain and Southern
Slovakian LCC expects more than the passengers further to other des- Europe. Charter activity is signifi-
700 000 passengers in Vienna. Two tinations. It also benefits from Air cant, from Austria to the southern
of its planes will be based in Austria’s Berlin’s logistic support (marketing, seas in summer, and from abroad
main airport, and ten in two years. Internet, call-center...). to the Austrian snow in winter. But
In Vienna, 2,2 of 16,9 million passen- Austria is also the door to Central
This is an important evolution in gers yearly choose low-cost flights and Eastern Europe. And this mar-
SkyEurope’s strategy : with two hubs - among whom 1,8 million fly with ket has just begun to emerge. From
both in Bratislava and in Vienna, Air Berlin - Niki. SkyEurope will Salzburg, Niki already flies to Bu-
the LCC now really reinforces its have to fight hard. Fortunately, the dapest, and SkyEurope to Warsaw.
leading position in Central Europe. low-cost activity is dynamic in this And from Vienna, SkyEurope will
Previously, SkyEurope was only airport: in 2006, it grew by 13,2%. launch in March flights to Bucharest
connecting Vienna with a shuttle Austria, with 8 million inhabitants and Sofia, and Niki to Moscow. The
bus from the Bratislava airport, one and high living standards, is an attrac- beginning of a « battle to the East »
hour away from the Austrian capital tive market for LCCs. Their market ? Maybe... But Niki Lauda, the par-
city, but located in another country. share is growing behind national lea- tner of Air Berlin, is also a friend of
The same strategy than Ryanair, not der Austrian Airlines. In addition to Ronny Pecik, the new Skyeurope in-
operating a single flight to Vienna, Vienna, five other Austrian airports vestor. And he announced he could,
but connecting four British cities and are connected to low-cost flights. In one day, cooperate with SkyEurope.
Milano to Bratislava. their case too, foreign companies are
In Vienna, SkyEurope will have to predominant.
compete with the local low-cost lea-
der: the German-Austrian alliance In Salzburg, an important LCC plat-
Air Berlin - Niki. form (12 companies, among which
«The same business model which gives us low fares (new «In the meantime airlines have an obligation to maximise
aircraft, high occupancy rates, direct flights) also gives us their environmental efficiency (particularly by operating the
environmental efficiency in the skies - easyJet emits 27% cleanest available technology). For their part, Governments
fewer greenhouse gasses per passenger kilometre than a tra- must ensure their policies balance the vast economic and so-
ditional airline on an identical route. In addition we reco- cial benefits of flying with its impact on climate change, par-
gnise that we can and we will expect more of our ground ticularly by mandating minimum environmental standards
suppliers at airports. for aircraft to operate in Europe.
«We also intend to play a leading role in improving the fu- «Governments should also recognise that some airlines are
ture environmental performance of our industry - reforming already more efficient than others - something that the UK’s
Europe’s famously-inefficient air traffic system, implemen- Air Passenger Duty dramatically fails to do. APD provides
ting a meaningful European emissions trading scheme, wor- no incentive for airlines to operate the cleanest aircraft; it
king on the next generation of aircraft, giving customers the completely omits airfreight and private jets; the proceeds
most comprehensive range of environmental information are not allocated to any scheme to improve the environ-
available for travel to a particular destination, and helping ment; and it is disproportionate - on a UK domestic return
them to offset the carbon emissions of their flight. flight, the £20 APD is now 25% of the average fare and about
10 times the cost of off-setting the carbon emitted on an
easyJet flight.»
Plane Stupid: «Yes. We will continue to target direct actions against LCCs»
Probably if somebody conducted a survey today about Low cost carriers are only able to offer their services so
the most often heard word in the news and read in the cheaply because of the enormous tax subsidies they re-
newspaper the answers would be firstly Environment and ceive through 0% tax rating on aviation fuel and no VAT
secondly Climate changes. Be honest with yourself, does it on tickets, aircraft or aircraft spares and repairs. All of the
not seems to you as if the words had been discovered few LCCs in the UK lobby aggressively to maintain their uni-
weeks ago. Everybody is speaking about environmental is- quely tax-free status; see Ryanair’s APD stunt earlier this
sues, their changes and consequences for the future - for year, or indeed easyJet’s deliberately misleading ‘sustaina-
our future. Supposedly everybody cares about the future, bility’ statement last week.
and therefore also about the environment, but what can
be done? Who is responsible and what is the solution? Plane Stupid targets LCCs specifically because most of the
destinations they serve are near enough to be easily accessi-
Air Scoop asked the association Plane Stupid why are Low ble by more sustainable forms of transport such as rail; 45%
Cost Carriers, in their opinion, not environmental friends of all flights in the EU are to destinations of 500km away
and if they plan any action against LCC´s in the future? or less; Paris is the top destination from Heathrow airport
- there are 60 flights every day to Paris from Heathrow.
Leo Murray, Press Officer of Plane Stupid, answered as The reality of transforming our economies to avoid dange-
follow: rous climate change means we cannot allow aviation as a
“Low cost carriers are driving the massive growth in air whole to grow much beyond its present size, and we may
travel we have seen and expect to continue to see over the very likely even need to reduce it. This means if we are
next decades if our governments do not adopt a policy of still going to travel to places like Australia, South America,
demand restraint. Air travel is the most environmentally China and Japan - places that are basically innaccessible
damaging form of transport, both because of the very high by other forms of transport - then we are going to have to
levels of CO2 it deposits in the upper atmosphere - exact- stop flying between nearby European cities altogether, and
ly where it is not wanted - but also because of the seldom find some other means of getting around instead.
mentioned other greenhouse gas emissions, such as NOX
and contrails, which make the warming effect of aircraft Yes. We will continue to target direct actions against LCCs
emissions at least twice that of the CO2 alone. All of this until they accept and admit that their business is a major
adds up to make aviation the fastest growing contributor cause of climate change, and is set to become the UK’s n°1
to climate change, especially here in the UK and the EU. contributor before 2050 unless their crazy expansion plans
are scrapped.”
www.airlinebulletin.com
Moreover, LCCs need to clearly explain to customers their LCCs also need to offer an alternative to environmental
position on two controversial programs that impact pas- taxes. Perhaps the easiest idea is to allow customers to do-
sengers and airlines. nate to a carbon offsetting charity to compensate for the
The first is the EU Emission Trading Scheme. Many LCCs emissions of their trip right from the booking page. To
seem to understand that emission trading is the best system launch this feature, airlines should match customer dona-
for reducing aircraft emissions, but LCCs might consider tions up to a certain figure.
pressing for changes to make the system fairer. These in-
clude: If LCCs create a dialogue with customers, they must ac-
• Ensuring that long-haul flights on any airline to/from Eu- knowledge the successes, but also the steps that still need
rope are covered so passengers who fly longer distances to be taken by passengers and airlines to achieve further
on an airplane, regardless of the airline, will pay their fair reductions to the human impact on climate change. An
share. advertising campaign that discusses the environment and
• Pressing for tough restrictions on the minimum number not travel may be the best way for LCCs to start a dialogue
of seats airlines can configure their aircraft with, which mi- with customers. LCCs should consider voicing their envi-
ght force legacy carriers to cut premium seat sections and ronmental message in various formats including:
make their aircraft more efficient to operate. • An advertising campaign similar to HSBC’s latest cam-
• Ensuring that the EU presses other nations, including the paign in the UK. This brilliant campaign contains a posi-
United States and China to develop similar schemes to tive, down-to-earth message that customers can relate to.
control emissions. EU airlines should not be the only ones The campaign de-emphasizes the negative image custo-
making sacrifices for the planet. mers have of banking and instead focuses on what HSBC
has done to reduce its environmental footprint, what more
LCCs also need to communicate to passengers what “green” they still have to do, and most importantly, what custo-
taxes LCCs find acceptable. Many customers justifiably be- mers can realistically do to help.
lieve that airlines are opposed to any taxes on air travel, • Information in in-flight magazines and other sources on
but some LCCs recognize that some environmental taxes the aircraft with the same content as proposed in the ad-
are necessary for passengers to pay, a fact many passengers vert campaign above.
aren’t aware of. LCCs need to set clear criteria for new or • A prominent, detailed, dedicated page to the environ-
expanded air travel taxes that passengers can comprehend ment on their Web sites.
and empathize with. Some possible criteria include:
• Tax increases must be phased in over a period of at least European LCCs shouldn’t hide the fact that they contri-
six months, so a fiasco similar to the current APD crisis bute to climate change. Instead, creating an open and frank
doesn’t reoccur. dialogue will help customers understand the challenges
• Taxes must directly fund environmental programs such airlines face, the steps most LCCs have already taken to
as the formation of carbon sinks. reduce their environmental impact, and the steps they
• Tax increases are proportional to the airline, duration of plan to take in the future. If LCCs don’t present their own
flight, and class of travel. Passengers who fly more envi- solutions to slowing climate change, then the uninformed
ronmentally friendly carriers shouldn’t pay the same rate public will side with governments, which will impose hi-
as those who fly on dirtier carriers, and like the APD, pas- gher taxes and an EU Emissions Trading Scheme that will
sengers who fly in premium classes should pay more than unfairly punish LCCs.
passengers who don’t.
Sam Sellers provides analysis and commentary on the airline industry at his website,
www.airlinebulletin.com. He is the author of Take Control of Booking a Cheap Airline
Ticket, an ebook for travelers in the United States who are interested in purchasing
cheap airline tickets. The ebook provides step-by-step instructions that readers can use
to purchase the cheapest airline tickets. It can be purchased for $10 at
http://www.takecontrolbooks.com/airline-ticket.html
11 Air Scoop - March 2007 www.air-scoop.com
DOWN TO EARTH
FITUR 2007
FITUR 2007 is the first grand tourism event on the yearly calendar for the in-
ternational tourist industry. Over 5 intensive working days, from 31st January
to 4th February, a comprehensive range of tourism businesses and destina-
tions from around the world has been presented in Madrid, which became a
veritable focal-point for Spanish and international tourism opportunities.
FITUR reinvents itself year after year, providing an Integral Promotional Service which generates fluid trade links among
all participating actors of the tourist industry before, during and after the exhibition.
An Air Scoop correspondent was at the FITUR 2007 and had the opportunity to interview LCCs representatives there.
2 questions to...
Andreas Engel: PR Spokesman International Germanwings
What are the projects of Germanwings in Malta? How does Germanwings manage the competition with
Ryanair?
Germanwings is now a litlle bit older than 4 years, flying
from 4 hubs in Germany to 60 destinations in Europe - Ryanair is low-cost market leader in Europe with over 16
and from end of March from Cologne & Stuttgart also to years experience to fly from nowhere to nowhere. Ger-
Malta, starting with 2 flights per week - starting from 19 manwings is mostly flying to Primary Aiports (Hamburg
EUR (incl. all taxes, up to 15 % of all tax). We think Malta not Luebeck like Ryanair or Barcelona not Reus or Stoc-
has an enormous growth potential, is a undiscovered Island kholm-Arlanda and not Skavsta, Paris CDG not Beauvais
for 7,1 Mi. Germanwings Customers we had 2006. etc) So Ryanair does not disturb us, and competition is
And there is a high demand also for well situated Germans good for Germanwings - we have the better product, we
to fly individualy with nice Germanwings Airbus, leather are «Lufthansa light», like a radio station in Malta men-
seats and without any advertising for gaming, gambling nor tioned recently. If you want to fly cheap with a very re-
car rentals to Malta liale airline, with brand new Airbus from, or to, a big city
like Cologne and Stuttgart, Germanwings should be your
choice!
2 questions to...
Loredana De Filippo, Exterior Relations from Meridiana
What are the projects of Meridiana in Malta? How does Meridiana manage the competition with Rya-
nair?
We will start operation between Bologna and Malta on
next April with two weekly flights (on Thursdays and Sun- Ryanair is not a real competitor for Meridiana, even if
days). Last year, Meridiana carried about 8.000 passengers this company is strongly operating in Malta. We feel more
on this route from June to September, the load factor on aggressive the competition with other Italian carriers that
the 3 month base was 65%, in August we reached 77%. If operates schedules and charter flight between Malta and
2007 operations will show a positive trend we could even Italy.
add a third flight per week. We aim to reinforce commer- Anyway Meridiana has a very strong position in the trade
cial agreement with tour operators and travel agency that Italian market, a website known and appreciated, fares and
helped us last year while starting operation in Malta in or- services standards that can compete with these carriers.
der to keep this service even in winter season. If we’ll have
cooperation and good results, next step could be opening
other destination and connecting Malta with Florence, Tu-
rin or Verona.
EVENTS
2nd Air Transport Conference for CSEE
Air Scoop is proud to be media partner this year again of the 2nd Air Transport Conference for CSEE.
Following the success of our Inaugural event last year, this year we are continuing in dealing with the issues Air Transport
is facing in this region. This is a unique opportunity to meet face-to-face with Key Players in this sector and discuss what
additional strategies you can easily implement to empower your business development.
How to register?
tel: +381 (11) 20 26119
e-mail: goran.ivanic@easteurolink.co.uk
www.easteurolink.co.uk