convair wrote:@ Inquirer
Your comparison with a multinational having factories in different countries is exactly to the point; so is your explanation of the wider picture.
Of course, we all want BRU to be connected with as many european cities as possible but realism must prevail for SN.
Thank you.
I think that what I have come to explain is just common sense to anybody working for a multinational?
A multinational airline operating with several hubs is not much different from say a global car manufacturer or in fact any other multinational manufacturer of consumer products, IMHO.
Basicaly, once the multinational has determined there is a new market they want to enter because they see a certain opportunity, the next question is always going to be
where to best base production?
And then a whole lot of internal issues and cost calculations will start to play, which will often also have an impact on other branches and activities of that multinational and most of the times the outcome of all that will mean the local plant next door is not going to be lucky even though it could technically accomodate that full production without problem, not because the multinational is stupid, but because the bigger picture isn't in favour of the local plant this time.
sn26567 wrote:So, if I understand well what corporate customers are saying above, SN has to relinquish its European destinations in favour of LH. And LH is doing all what it can to create an extensive European network of its own through which all the customers of their subsidiaries must travel.
A multinational will always strive towards consolidation and simplification by making best use of its size. Let's take WAW/KRK as example to understand the game, since it is near to your hart, it seems.
How many people on that flight were actually starting or ending their journey in BRU? And how much did they pay on average? Enough the cover the full cost of the flight on their own, you think? Clearly not, or the flight wouldn't be axed, I am pretty sure.
For a stand alone airline it could have made sense to continue flying to WAW or KRK because thanks to the big number of connecting passengers those routes may (or may still not be) profitable, but in case of a multinational like Lufthansa, one should remember those connections can just as easily be routed through existing flights to say FRA or ZRH with the added benefit of consolidating the same connecting revenues over less flows and with less costs all while taking capacity off the market, thus likely also increasing prices.
So, seen from a higher persective than just BRU alone, the only loss from axing the BRU-WAW/KRK route are the point-to-point passengers which do not want to pass through FRA or ZRH and as I've experienced first hand the most lucrative ones have been taken care of through corporate contracts.
What I have explained above is a basic example of a huge benefit from consolidation only multinationals can come up with, which is why multinationals are slowly taking over the world, like it or not.
Does that mean all European flights from BRU need to move to FRA then?
If a route is profitable below the line, there's no need to move it and open the field to competitors, but if it isnt -like most likely WAW- then its far more easily cut than it was before because within the bigger picture, the loss is miminal and most likely offset by gains elsewhere.
Mind you: the pendulum also moves in the other way, with Lufthansa or other airlines from the group cutting flights/destinations in their schedules and letting the passengers on them route through BRU, but of course something like that is seen as 'normal', than when it happens the other way round.
I am sure people around here can come up with examples of routes which have been transferred from say Lufthansa or Swiss to Brussels or destinations where Swiss or Lufthansa have pulled out from to the benefit of Brussels which still operates there?
convair wrote:It is sad but we didn't see any belgian "entrepreneur" courageous or fool enough to invest in SN and make it an airline for which the decisions would be taken in Brussels!
It will be the job of SN management to come with good arguments and figures to persuade the LH boss for everything they want to do, on a case by case basis.
But LH management is not that stupid: if a proposition by SN makes sense (and cents) for the LH group as a whole, they will probably accept it.
Exactly; I don't have any figures either, but the way in which B.air managed to position itself commercially on the NYC market for instance is a good exemple of this: I don't think a little known airline like Brussels Airlines would have been able to achieve such a splash on its own at JFK, let alone chase away American.
From what I understand, the strategic targets for Brussels are set in Africa and yes, that means that Brussels won't likely get to fly to South America or to Asia nor will it be called upon to build a regional European network (as that is already largely in place at Lufthansa through FRA), which we all find a pitty I am sure, but then I am sure we all think it is perfectly normal that say Austrian Airlines or Swiss aren't venturing into emerging markets like Africa. Never wondered why they don't do so? The easy answer is they are just idiots too, but maybe, just maybe the more common sense answer is because the multinational has decided this niche isn't for them to cover and has given that to BRU.
I hope this quick and most certainly incomplete explanation helps to see what I mean when I say you better look at brussels airlines from a bigger picture, rather than consider just BRU alone.