Cargo B financial woes ?

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teddybAIR
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Re: Cargo B financial woes ?

Post by teddybAIR » 01 Jul 2009, 13:50

By the way: the best proof is that Cargo B has burned 27M€ in capital! Assuming that this is the end and all other factors remain the same, having the double in capital would only have doubled the lifetime, but structurally, it would still have been a deficit. Moreover, in the event of a positive P&L, the % return would have been cut in half as you have invested the double to achieve the same absolute result.

Shanti
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Re: Cargo B financial woes ?

Post by Shanti » 01 Jul 2009, 14:20

Maybe a solution, half the plane cargo, half of plane with passengers seats...
you NEVER know, something like 747 combi.

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Accry
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Re: Cargo B financial woes ?

Post by Accry » 01 Jul 2009, 15:39

hi guys,

I officialy announce you the end of CargoB Airlines...


I sincerely regret

Super Baloo
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Re: Cargo B financial woes ?

Post by Super Baloo » 01 Jul 2009, 15:46

Sorry to read that.

Good luck to all the staff.

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Lyulka
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Re: Cargo B financial woes ?

Post by Lyulka » 01 Jul 2009, 15:55

Accry wrote:I officialy announce you the end of CargoB Airlines...
Even though it might end up like that, De Tijd mentions that Cargo B stops operations, but also that they are not filing for bankrupcy yet.
Is this information then not correct?

Acid-drop
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Re: Cargo B financial woes ?

Post by Acid-drop » 01 Jul 2009, 16:12

one more victim to add to the list :/

Darjeeling
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Re: Cargo B financial woes ?

Post by Darjeeling » 01 Jul 2009, 16:18

Belgian aviation is again walking on its head...
There are so many things that go wrong here.

I don't think the Japanese will keep paying for two grounded brand new B744F.
So that means: THE END. :oops:

By the way: some ex-b-air who left to go there must be biting their
fingers. We all think about them. May they get a new good job soon.

Bralo20
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Re: Cargo B financial woes ?

Post by Bralo20 » 01 Jul 2009, 16:21

Lyulka wrote:Even though it might end up like that, De Tijd mentions that Cargo B stops operations, but also that they are not filing for bankrupcy yet.
Is this information then not correct?
Cargo B Airlines is indeed not bankrupt... They will suspend all activities but are not filing for bankruptcy (yet).

But in fact, it is the same... The end of Cargo B... Maybe they will restart after the crisis, maybe not, who will tell?

Don't know what will happen with both B744F's. Are they stored in AMS? Will they be stored in BRU or LGG or will they go to Japan?

AFAIK NCA can't use the planes... So maybe they'll be ending in the desert for storage or being sold.

joyraider
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Re: Cargo B financial woes ?

Post by joyraider » 01 Jul 2009, 16:25

Dear Business Partner,



We deeply regret that we have to advise you that the Board of Cargo B Airlines had to take the difficult decision today to stop its operation with immediate effect.

Thanks to support from our clients and the hard team work of your and our staff and all partners we have been able to stay on target as far as the load factors but the yields as a result of the market situation were lower than required and this had a big impact on our revenue and cash position.

The present economical climate with no improvements foreseen in the near future and the strong competition resulting in sometimes very low rates mean we cannot expect major improvements on the short term.

Cargo B has been doing its utmost in the past few months and as recent as last week to find the interest of new investors to increase the required capital but we have not been able to find sufficient funds and parties to warrant a continuation of the operation.

We are very grateful for all your support and the confidence given to us from the start of the flights in October 2007 and our sincere apologies for any inconveniences caused as a result of our decision.

In the next days we will come with the procedures to follow in relation to the outstanding invoices and how to proceed.

Kind regards



The Cargo B Management

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Atlantis
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Re: Cargo B financial woes ?

Post by Atlantis » 01 Jul 2009, 17:06

Says more then enough.

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Established02
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Re: Cargo B financial woes ?

Post by Established02 » 01 Jul 2009, 17:21

Very sad to see them go belly up.

Cargo B airlines stopt met vliegen
http://www.standaard.be/Artikel/Detail. ... 090701_054
Attachments
2009 06 26 - OOCBC - A.jpg
2009 06 26 - OOCBC - B.jpg
2009 06 26 - OOCBC - C.jpg

Jipe
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Re: Cargo B financial woes ?

Post by Jipe » 01 Jul 2009, 19:50

Does anybody know what Cargo B will do with OO-CBA?

Since the tailstrike, it was stored near LH Technics, then moved near the Satellite. They removed the radar equipment and 2 motors at this time. and since few month OO-CBA is parked on the APRON 40.

NCB

Re: Cargo B financial woes ?

Post by NCB » 01 Jul 2009, 20:22

very sad day for Belgian aviation.

If this may help any crews eventually reading this thread,
-Cargolux is hiring B744 F/O's.
-MK airlines is not actively hiring but here's their applications website: http://www.mkairlines.com/aircrewapplication/
-Saudi Arabian Airlines is looking for B747 F/O's http://sv.net/apps/forec/# and through a third party recruiter B744 captains:
http://www.aviationjobsearch.com/jobs/p ... earch_no=3

Here's another one looking for B744 F/O & captains: http://www.aviationjobsearch.com/jobs/p ... arch_no=12
-Rishworth is recruiting B744 captains and F/O's for Korean Air: http://www.aviationjobsearch.com/jobs/p ... arch_no=27

Good luck to you all, those with extensive experience won't have a hard time finding a job.

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Established02
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Re: Cargo B financial woes ?

Post by Established02 » 01 Jul 2009, 21:27

Begin mei besloot de luchtvrachtmaatschappij nog te verhuizen van de luchthaven van Brucargo, in Zaventem, naar Bierset bij Luik. Daarvoor kreeg ze van de Waalse regering een achtergestelde lening van 1,5 miljoen euro. De totale kost van de verhuis werd toen begroot op 12 miljoen euro

In the article of De Standaard it says that the total cost of moving BB's operations from BRU to LGG was budgetted to 12 million EUR! :shock:

Why would it have to be so costly for CargoB to move from BRU to LGG?

Did it cost as much for ET to move their extensive operations from BRU to LGG?

OO-LRM
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Re: Cargo B financial woes ?

Post by OO-LRM » 01 Jul 2009, 21:55

The dutchmen lectured me once,on how i should lead an airline,he had with his (then)friend Stevie huge projects!Stevie kicked his a...!Second episod:Petercam had great,sound plans with risk investment,the dutch tennis player whas going to run the show.Fortunataly i did not invest!!!
N.B i did invest in more traditional petercam stuff,had collateral damage but ok after all.
To bad after all,for those as myself believe we still have a great potential in BELGIAN know how.

FlightMate
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Re: Cargo B financial woes ?

Post by FlightMate » 01 Jul 2009, 21:57

Dear fellow pilots,

I suggest you have a look at Korean Air; their terms and conditions are apparently very good.

Wishing you good luck,

Flightmate.

Acid-drop
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Re: Cargo B financial woes ?

Post by Acid-drop » 02 Jul 2009, 09:57

Established02 wrote:Begin mei besloot de luchtvrachtmaatschappij nog te verhuizen van de luchthaven van Brucargo, in Zaventem, naar Bierset bij Luik. Daarvoor kreeg ze van de Waalse regering een achtergestelde lening van 1,5 miljoen euro. De totale kost van de verhuis werd toen begroot op 12 miljoen euro

In the article of De Standaard it says that the total cost of moving BB's operations from BRU to LGG was budgetted to 12 million EUR! :shock:

Why would it have to be so costly for CargoB to move from BRU to LGG?

Did it cost as much for ET to move their extensive operations from BRU to LGG?
Are we sure it costed already something even if they had'nt moved yet ?
The amount is quite huge indeed.those numbers were given in may already.
LGG was suppose to make them spare money, not the opposite ... They may have decided that too late.

Ethiopian is ready for a long term expansion plan in LGG, so I guess the cost of the move can be spread and benefits are expected to come faster.

teddybAIR
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Re: Cargo B financial woes ?

Post by teddybAIR » 02 Jul 2009, 10:47

If the move would really cost 12M€, then I would be very curious to see that business case! I really wonder what the payback time of that operation would be, let alone the return on investment on a horizon of, lets say 5 years.

Anyway, let's hope they can still "save some furniture" (de meubelen redden :D ), restructure and lean the operations and find an investor (probably hardest task)

Acid-drop
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Re: Cargo B financial woes ?

Post by Acid-drop » 02 Jul 2009, 11:14

If they could keep the company alive and start again when the crisis is over, it would be already very good ...
We can dream...

LX-LGX
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Re: Cargo B financial woes ?

Post by LX-LGX » 02 Jul 2009, 11:31

teddybAIR wrote:If the move would really cost 12M€, then I would be very curious to see that business case! I really wonder what the payback time of that operation would be, let alone the return on investment on a horizon of, lets say 5 years.

Anyway, let's hope they can still "save some furniture" (de meubelen redden :D ), restructure and lean the operations and find an investor (probably hardest task)
Agree, the cost of the move is absolutely ridiculous. I guess they've made that "business plan" tailor made for the Walloon Region: Cargo B received 1,5 mio euro (*) for the move. So they've calculated the move at 12 mio euro to please the Walloon government: if another Region takes the Walloon Region to court (Raad van State / Conseil D'Etat) for unfair aid, the Walloon Region can argue that the gift of 1,5 mio euro is only 12,5% of the total cost, and therefore legally justified. Don't forget this is Belgium.

(*) yep, it was not a gift but a loan. But who cares?
teddybAIR wrote: Anyway, let's hope they can still "save some furniture" (de meubelen redden :D ), restructure and lean the operations and find an investor (probably hardest task)
I don't share this optimism. The financial situation is dramatic, so forget a take over before bankruptcy. Example: KBC Bank account is 5 mio euro overdue. If someone takes over Cargo B now, they also have to take over all debts.

Don't forget that the result of the first year of business was already dramatic (-7 mio euro). I'm sure that the 2008 result will beat that...

My personal guess: with the move to LGG, Cargo B management declared war to one of the shareholders, Flanders Invest, who is only allowed to invest in employment in the Flemish Region. So Kuijpers & co forced them to withdrawn from Cargo B. Which investor will have confidence in these people?

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