Brussels Airlines future and financial perspective

[RoMax]

A good analysis in "De Tijd" :
http://www.tijd.be/nieuws/ondernemingen ... 0-3085.art

Until now, I find nothing on the sites of the belgian newspapers in french - not even "La Libre", usually the first to celebrate SN.

De Tijd will not like it, but maybe you can put the article as a whole on the forum (or the important parts or a short English summary) for those who don't have an account on De Tijd (I do have one, but ran out of my 'free articles' as I'm not a subscriber)

[airazurxtror]

I have just seen it on their site, I have no account with them - and they forbid to copy their articles ...
Found one in french in l'Echo :
http://www.lecho.be/actualite/entrepris ... .art?ckc=1

[Sean_DM]

After a presentation of the figures "de tijd" concludes that SN did not reach the target of its "beyond 13-14" plan
They also note that todays figures allready include the 15 milion€ which still needs to be paid.
CEO of SN says hè does not want to go for short term profit but longterm stability.
Hè does not want to comment on when profits will be expected. Could be this year or next.
In the mean time LH sister companies Austrian and Swiss have reported firm profits.

That's about it

[RoMax]

Not much different than on some other free sources then. Thank you.

This result is indeed below the original target of a loss between 0-20 million for 2013. But SN decided to go the way of higher investments at the cost of short term profit. As Gustin said (I believe I read this on Knack.be), SN would have been profitable in 2013 without long term investments such as in the fleet and destinations (e.g. that extra A330 and IAD are major investments for a rather small company like SN and something that doesn't earn you any money in the first year). This year it will be the same with further investments in the fleet and product (ranging from website to on board product and lounges) etc.

Without state support they would have turned a loss of 37 million. A 17+ loss compared to the original Beyond 2012-2013 plan, but it has its reasons. And in December Davignon still warned for a loss of 45-50 million without state support, so 37 is still a bit lower.

[Conti764]

I have to say that I have been quite dissappointed by SN on a personal level. From the 50 or 60 or so employees that I've met in the last 3 weeks that I said good morning - evening to, only one did not stick their nose in the air and turned their face away. I really cannot understand why people cannot just be civil? :/

Not just SN, but it's a strange thing many people in aviation seem te sharen. Wether it's flight crew, cabin crew or ground personel, many of them seem to think the GMT runst through their asses...

I have worked for five years at the airport, and the only time the majority of them were friendly was when they were in (desperate) need of help. I didn't care back then, I still wouldn't care and probably never will...

[tolipanebas]

Indeed, De Tijd nitpicks over the fact the target originally was set at €-20M whereas the final result is €-21,95M.

What De Tijd forgets to mention is that the €-20M target ALWAYS included a security tax cut of €20M as that was firmly promissed by our government in NOV 2012; in the course of 2013 however, it turned out the budget the government reserved for the security tax cut at BRU suddenly had to be shared with other Belgian airlines too rather than reserving them an additional budget, thus making it €15M iso €20M for SN, yet despite this unexpected shortfall of more than €5M, the original target was (as good as) met, mainly thanks to a very strong Q4, a performance which we see continued through Q1 too.

In the end however, it doesn't matter what WE think of it, it only matters what shareholders think of it and believe me: they have studied the financial figures and the underlying performance which are known for some time now internally and are strongly impressed with the much improved operational results to the point they have decided to invest €100M in the further expansion of SN, the first step of which was announced at the end of JAN when it launched no less than 11 new routes for this summer as well as increasing frequencies on MAD and recently also LIS, thus adding close to half a milion extra seats vs last year, more than half of which have already been sold in the mean time...

[Sean_DM]

I have to say that I have been quite dissappointed by SN on a personal level. From the 50 or 60 or so employees that I've met in the last 3 weeks that I said good morning - evening to, only one did not stick their nose in the air and turned their face away. I really cannot understand why people cannot just be civil? :/

Not just SN, but it's a strange thing many people in aviation seem te sharen. Wether it's flight crew, cabin crew or ground personel, many of them seem to think the GMT runst through their asses...

I have worked for five years at the airport, and the only time the majority of them were friendly was when they were in (desperate) need of help. I didn't care back then, I still wouldn't care and probably never will...

Well believe it or not, but I'm not used to that. In FR we have a very relaxed, easygoing atmosphere. Also in CRL nearly everybody (except from Some JAF staff) we're very friendly saying hello and goodbye.

My first day in BRU at the parking there we're Some SN crew (pilots and cabin crew) standing there, and I said good afternoon ( in dutch and french). They looked at me for a second as I was from Mars, then turned their head away and pretended I wasnt there. That really shocked me to be honest.

But i'm not giving in, I keep speaking to everyone I meet even if it kills me.
But because of that I decided to book United with a group of 20 friends to go to the states.

[cnc]

its a BRU thing, at OST, CRL or LGG the atmosphere and people are different

[tolipanebas]

My first day in BRU at the parking there we're Some SN crew (pilots and cabin crew) standing there, and I said good afternoon ( in dutch and french). They looked at me for a second as I was from Mars, then turned their head away and pretended I wasnt there. That really shocked me to be honest.

if you think BRU is bad, wait till you come to really big airports like LHR, CDG, JFK etc and meet crews of LH, AF or DL in person. If the lable on your crew bag doesn't show the right company's logo, don't count on them holding the door open for you is all I can say.

Don't gorget that so far you've been operating in a nicely protected yet very unreal environment where everybody basically works for one and the same company, be they on its payroll or not, but you better get used to the reality of your new base: why should anybody be nice to the guy who's boss want to put them out of a job if he gets the chance???? Makes no sense now, does it?

[Sean_DM]

No it does and it is both rude and ridiculous.

I think i've been in practically every FR base as an instructor, also in the big ones, and I've never came cross such rudeness.

The fact that you defend it it's just sad and says a lot about company culture. It would simply not be tolerated in FR. If would see any of my crew be rude to other crew that would be the first point on my debriefing list!

Your boss would do the same to me if he had the chance, it doesn't stop me from being friendly. Maybe cause my parents DID teach me manners.

Anyway it cost SN 16.000€

[tolipanebas]

No it doesn't and it is both rude and ridiculous.

Theres nothing rude about simply ignoring you...

A kind nod is as much as you can possibly expect: welcome to flying from hubs in the wrong uniform, is all I can say.

If you are an empathic person, think about us having to go through other airlines hubs on an almost daily basis while being on nightstop overthere and the looks of disrespect we must face there: it may seem a bit strange at first, but you'll get used to it, believe me.

Anyway, what does all this has to do with the topic at hand, if I may ask?

[Sean_DM]

Nothing, but your manner as always is stunning and not in a positive way. I will decide myself which uniform is right or wrong. Nuff said

[tolipanebas]

Anyway it cost SN 16.000€

No it didn't.
You said you've booked UA, yet UA and SN share revenues on all their transatlantic flights through A++ regardless who you book through, so let me be kind and thank you for your business.

[Sean_DM]

Well consider it being for the last time then. What a company representative you are, maybe you should go in PR

[RoMax]

But because of that I decided to book United with a group of 20 friends to go to the states.

I don't really know if that helps you...when you walk around BRU with your uniform/badge or whatever indicates you work for FR, you may not get the nice reactions you would like to get. But that's a complete different thing as how you are threated as a passenger (as long as you don't fly in your FR uniform). It's not because I prefer SN, but SN's service on these trans-Atlantic flights is really much better than that of the US airlines, they are not exactly known for their friendlyness, not even to their pax, contrary to SN.

[Sean_DM]

I don't care, i'm not going to fly with a company that treats me like a piece of garbage (whether in uniform or not, it never prompted me to treat anyone different) one day and hand them over 16.000€ the day after. Full stop

Besides, I've flown UA before and they were great

[RoMax]

I don't care, i'm not going to fly with a company that treats me like a piece of garbage (whether in uniform or not, it never prompted me to treat anyone different) one day and hand them over 16.000€ the day after. Full stop

You must have been working with really great people over the years. The hostility between staff of different airlines can be really really bad (mainly between competitors). You even see it whith merging airlines that besides the conflicts about contracts and working conditions, there is still hostility or at least a certain tension between the staff of these previously seperate airlines. Though it highly depends on the departments/sort of staff.

But once again, how did you 'hurt' SN by going for UA being not just a codeshare but a revenue-sharing joint-venture partner?

Oh well, you don't even have to answer me, I don't think this matters in this topic, does it?

[Sean_DM]

You must have been working with really great people over the years. The hostility between staff of different airlines can be really really bad (mainly between competitors). You even see it whith merging airlines that besides the conflicts about contracts and working conditions, there is still hostility or at least a certain tension between the staff of these previously seperate airlines. Though it highly depends on the departments/sort of staff.

Btw, it is not unique to aviation btw.

I have met in general fantastic people over the last 10 years. I also refuse to let it change the way I'm used to interact with people, but it does affect my travel choices. It wasn't my intention to "hurt" anyone, I just won't fly them anymore.

[cnc]

you'll get used to it. i've seen people from aviapartner giving names to flight deck crews like asshole, dog, ...
if i walk around in BRU without a suit + badge BIAC staff looks at you like you are dirt. they only act nice once they figure out you could have connections. its the kind of atmosphere that takes a hold of everyone in the end.
people at IAD for example are way more gentle

[sn26567]

Translation of the article in De Tijd:

Brussels Airlines out of the red only in 2015

Brussels Airlines posted last year less losses but the original ambition to come out of the red this year does not stand up. "We want no short-term gain, we aim to be profitable," now it sounds.

At the presentation of the savings plan 'Beyond 2013-2014 ' at the end of 2012, CEO Bernard Gustin forecast a reduction of the net loss to 20 million in 2013 and at least break even in 2014. The airline did not make it and the objectives had to be adjusted .

"The board, however, was very pleased with our work," Gustin announced at a press conference. "We were able to improve our operating results by 63.3 million, our net income improved by 38 million." These figures do contain a - yet to be paid - public financing of approximately 15 million.

If this financing is taken into account, Brussels Airlines does not reach the target of a loss of approximately 20 million. "We are aiming for sustainable profit", now it sounds. "If we had not invested, we might be able to write all black figures last year, but we look to the future."

The ambition is therefore to clamber out of the red this year. Repeated Gustin "It could be, but maybe not," said the CEO. 2015 is now put forward as the year when the company finally viable. In the long term Gustin wants to get a margin of 5 to 8 percent.

With the rapid expansion of the European Network - a reaction to the arrival of Ryanair to Brussels Airport - Brussels Airlines ventured a guess , "but we can not stand still, we must defend our market share," it sounds combative.

Meanwhile sister company Austrian Airlines - a wholly owned subsidiary of Lufthansa - booked its first profit in six years. The other sister Swiss has long been profitable and could even increase its operating profit by 25% in 2013. "I 'm a little jealous of Swiss", conceded Gustin.

Parent company Lufthansa saw a sharp decline in profits, which is still 697 million. Lufthansa has a 45 percent interest in SN Airholding, the holding company that is the sole owner of the Belgian airline.