SkyEurope - in trouble?

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summersso
Posts: 172
Joined: 20 Oct 2006, 18:45
Location: Vienna, Austria

SkyEurope - in trouble?

Post by summersso »

Hi there,

I've just read that SkyEurope have cancelled their flights from STN-KRK from January. They've also recently stopped flying from STN-BUD and to WAW in February 2006. See this forum (in Polish):
http://www.pasazer.com/forum.php?lp=13422&art=1981

One contributor suggested that they're in a desperate financial situation and surviving day to day... :cry: Could this be true? I find it difficult to believe considering they recently purchased five new aircraft and placed an order for more.

I'm wondering whether anybody could shed some light on SkyEurope's financial situation. Is it dire? Are they on the verge of collapse? They've had some excellent offers on their website recently - is this common for a (supposedly) dying airline? :?:

Hope you can allay my fears, as I'm a regular passenger on their BRU-KRK route and concerned that all the flights I've got booked until March 2007 may be affected!

Let me know your thoughts. :!:

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sn26567
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Re: SkyEurope - in trouble?

Post by sn26567 »

summersso wrote:I'm a regular passenger on their BRU-KRK route and concerned that all the flights I've got booked until March 2007 may be affected!
This is also a route I wanted to fly during the next three months, hence I'm also interested in any information on the financial situation of SkyEurope.
André
ex Sabena #26567

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Atlantis
Posts: 4501
Joined: 12 Apr 2005, 00:00

Post by Atlantis »

This is no news, but old news. There was already a topic about this a year or so. They are still flying and buying airplanes.

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TBSC
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Location: Hungary

Post by TBSC »

Numbers are speaking for themselves (altough the text is saying just the opposite as usual...):
http://www2.skyeurope.com/EN/Documents/ ... 0%20en.pdf
Net loss for 9 month ending 30 june 2006: -50 m EUR.

They just got some fresh money from York Global Finance, but who knows how long it will last. 40-50m EUR from the share release in 2005 is gone already (within a year...). 4 B735s are going back to lessors this year, which is a lot of money and I quess they are spending a lot for "WE PAY, YOU FLY" kind of actions.

Obviously I am not the greatest fan of them, but facts are facts...

summersso
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Joined: 20 Oct 2006, 18:45
Location: Vienna, Austria

Post by summersso »

SkyEurope have just posted their financial results for 2006 which makes interesting reading. Sounds like they'll be fine. [sigh]! They've not yet announced any new routes for summer 2006, I guess we should expect to hear something in the next few weeks... fingers crossed they'll launch more routes from Brussels!
http://www1.skyeurope.com/EN/Documents/ ... 006_en.pdf

snowbird
Posts: 68
Joined: 05 Feb 2004, 00:00

Post by snowbird »

Sorry, just read the document of sky-europe.

I would say, YES, THEY ARE IN TROUBLE
They made a loss (nett result) of 57 million euro's (was 28.6 last year).
conclusion:
more traffic, more pax, more revenue, loweryield, far more costs = huge net loss

I am sorry to say, but who wants to invest money in this airline. Don't hope to see more routes to BRU. They better can stop some routes and try be more profitable.

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beaucaire
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Location: Tarascon -Provence

Post by beaucaire »

summersso wrote: Sounds like they'll be fine. [sigh]! They've not yet announced any new routes for summer 2006, I guess we should expect to hear something in the next few weeks... fingers crossed they'll launch more routes from Brussels!
http://www1.skyeurope.com/EN/Documents/ ... 006_en.pdf
With accumulated losses of more than 10O0 M € your statement is close to ridicoulous!
With the current losses continuing at the same rate,I don't see how the BRED could invest public (taxpayers -money ) into a black hole like SkyEurope.They should close the airline and stop wasting good money in a troubled concept!

summersso
Posts: 172
Joined: 20 Oct 2006, 18:45
Location: Vienna, Austria

Post by summersso »

I don't think calling them a troubled concept is quite fair...

The last financial year has quite evidently been a strain on them, and yes, they're currently losing money but FY2006 seems to have been a year for investment - aquisition of new aircraft, launching a new website and booking system, and of reorganising their network to drop unprofitable routes - notably, the move from Warsaw to Prague. It looks to me as though they've now got a better, more secure base (admittedly in debt) on which they can build.

If, beaucaire, you've has the pleasure of flying with SkyEurope then you'll know that the only "troubled concept" seems to be that they're perhaps just rather too nice for a low-cost airline (which I find strange). I mean, a large coffee for just 1euro? Friendly, well-trained cabin staff. Efficient, staffed call centre and good customer service. It's just strange that they're not rude and/or useless, or trying squeezing as many euros as they can out of customers like Ryanair or Wizzair.

And snowbird, we've known for a while they were going to lose around 50million euros this year, that's not surprise - and I don't expect it was a surprise for the airline either!

snowbird
Posts: 68
Joined: 05 Feb 2004, 00:00

Post by snowbird »

@ summersso

I think it is a surprise for the people who bought shares. SKY promised golden mountains but ....
Please read the paper and look at the page where the airline requests another 56 mill. euro's to "bridge the gap to profitibility".

We will see..................

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Atlantis
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Post by Atlantis »

Somebody knows whats wrong with the flights to BRU lately? Also the flight of today is cancelled. Some weeks ago I heard that Skyeurope is satisfy about the route Krakau - Brussels. What could be the reason?

summersso
Posts: 172
Joined: 20 Oct 2006, 18:45
Location: Vienna, Austria

Post by summersso »

The flight on Monday 27th was as scheduled.
The flight on Wednesday 29th was cancelled back in September - I had a ticket booked for my girlfriend - ostensibly due to "rescheduling winter season flights" but probably due to low bookings.
The flight on Friday 1 December was postponed from 7am until they decided at 9am that they wouldn't be able to fly, because of heavy fog in Krakow, which affected most flights from Krakow on Weds/Thurs/Fri morning. Some passengers were rebooked on the Sunday flight (today) others, like my girlfriend, rebooked in two weeks, when I hope (:!:) the fog will have lifted!!

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