Hello everybody,
Here is the full translation of the German press article:
Why does Brussels Airlines is pleased to Lufthansa integration
CEO Bernard Gustin says in an exclusive interview how the attacks Brussels Airlines have changed, why the integration into Lufthansa makes sense and how he wants to rejuvenate the fleet.
Where were you on the morning of 22 March when the attacks occurred at Brussels Airport?
Bernard Gustin: I came that day earlier than usual to the office. I had to prepare even a management meeting. The night before, I had not done it, because we had since our plane presented with Magritte special paint solemnly to the public. I was very elated about the morning. In addition, we had five days earlier presents brilliant results. Thirty percent more passengers, higher returns, a record high profits. But shortly before 8:30 am Then came the first reports of the attacks. Believe me, I've never been so fast from paradise to hell.
What happened then?
One advantage was that I was already in the office. Many other managers were not able to quickly access our offices which are located near the airport. It was blocked everything. We set up immediately a crisis center. In the first few minutes it was all very confusing. We had to make a picture of the situation as everyone else because of media reports and first Twitter photos. On one of these pictures one saw our ticket office at the airport. I was shocked. I was afraid that we lost many colleagues. Later, I went down to the main entrance and waited for all employees who returned from the airport to us at the headquarters. I shook hands with everyone, we embraced. It was very emotional. Then we tried all counting and noticed that four colleagues were missing. I immediately sent a los colleague who searched the hospitals. So we knew what had happened to our people and showed them that we had not forgotten them. Almost simultaneously began the usual crisis work, when we took care of our passengers. The Easter weekend was approaching yes. Yet we did not realize how bad everything was. But then told me an expert, that the airport will probably remain closed for several days. Since we knew how great our challenge would be.
Did you think about, a few days to close completely?
No. The crisis unit immediately sat together. And quickly came up with the idea that we could move the European traffic to Antwerp and Liege. At the same time we were planning long distance traffic to Frankfurt and Zurich bring. Lufthansa CEO Carsten Spohr had me early in the morning as the first ever called and asked me about the condition and there also offered to help. Within 24 hours, we have built up to an emergency operation. That was amazing - even though unfortunately we were not able to offer the creature comforts our passengers and they were often faced with a chaotic situation. But we have done something. We fought, and therefore they have forgiven us.
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Carsten Spohr had called me early in the morning as the first ever"
What happened internally with the employees?
That sounds kind of funny. But the whole thing has bound us together. The will to achieve something together, was extremely strong. For days hundreds of people day and night working through here to get the business back on track and to assist passengers. It's great to have such an employee.
Can you estimate also the financial loss?
This really is not our first priority. More important is that we can carry out 100 percent of our flights again. Yet the Brussels airport does not work as before. It was not built to control each passenger several times, as happens now. This holds even certain people from traveling from Brussels. Therefore, we have to see how the demand develops. Our ultimate goal, however, remains that the planned 8 million passengers in 2016 to reach yet.
And as it looks to cut costs?
Our estimate of the financial cost of the attacks is 70 to 100 million euros. That's a lot of money. We hope here to cover part of the cost through insurance.
One effect was that Lufthansa postponed the decision on a full takeover of Brussels Airlines in the autumn. Are you disappointed?
No. This decision we made together with Lufthansa. The complete integration into Lufthansa will retain a lot of resources. This is a huge project. I must first take care of me and my colleagues now to the normalization operation. In addition, the also the wrong signal would now be sent: Are the so desperate that they are open to take over? For the opposite is the case.
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The decision to shift we met jointly with Lufthansa."
That means you are responsible for the integration?
I am convinced that it is a smaller airline as we are better in a large network. The solo is not an option. The sale of 45 percent stake in Lufthansa 2009 was therefore a conscious decision. We had then looked at all the other possible partners and decide on Lufthansa. This assessment has not changed. I am absolutely convinced that Brussels Airlines will be even stronger as a full member of the Lufthansa Group. The integration brings not only us something, but also Lufthansa.
What do you bring for Lufthansa?
There are three things, and by the way also sees Carsten Spohr way. First, we will be launching a Brussels with the many business customers traveling to EU institutions, NATO and international group headquarters. This market is actually larger than the market Frankfurt. Secondly, we have in Africa a vast knowledge and there is a very strong image. And thirdly, we have a recipe found how to exist by the low-cost supplier, despite fierce competition. Ryanair and Vueling have a base in Brussels, Easyjet is also very active. We now know how to handle it and grow anyway. And then there are half a point, which goes sometimes forget something. The Brussels hub will be the first at Lufthansa, which is not in the German-speaking world. So we bring expertise in a different culture with.
Are there any products that could incorporate other airlines Brussels Airlines?
We have last fall launched the loyalty program Loop. Jetblue was the model here. Miles & More is great, but especially for the frequent flyer. For passengers traveling from and within Europe, Loop is a very interesting alternative. You we want to offer something even if they are not frequent flyers. Meanwhile, we have 70,000 members in Loop. It is a loyalty program, no frequent flyer program. There are no blackout dates, you can gather together, you can get very low free flights. It is a program that provides the consumer at the center. Other airlines in the Lufthansa Group, the look at exactly. Maybe they do not need it now, but when the competition increases.
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The Brussels hub will be the first at Lufthansa, which is not in the German-speaking world."
And what does Brussels Airlines integration?
There are certainly synergies because we can save some costs. We also enjoy the benefits of increased purchasing power, not least for aircraft. Our costs can sink so on. but is much more important the sales power of Lufthansa. We could never build a strong enough sales himself, for example in the US or in Spain. As we help the composite.
Are there opportunities for cooperation with Eurowings?
Absolutely. There are great similarities. We are exposed to both strong competition from low-cost providers, both have an unsaturated domestic market and operate both no hub with flights to all regions of the world. This is different with Lufthansa, Swiss and Austrian Airlines. Nevertheless, there are also differences: We have other than Eurowings a hub and transfer passengers.
But you wish that Brussels Airlines is organizationally located closer to Eurowings or rather with Lufthansa?
We need to find a strategy within the Lufthansa Group, which these two aspects - does justice - Lowcost- and hub provider. It must also strengthen us beyond our home markets Belgium and Africa. Whether we are then appended at Eurowings or the Hub Management at Lufthansa, does not really matter. There are good arguments for both divisions. An advantage of Eurowings is certainly that are still under construction. Since we can bring us more with our small size. The advantage of hub management area is that it is already working well.
Would it be possible that Eurowings once accepts routes of Brussels Airlines from Brussels?
No. It makes no sense to have two brands in Brussels. We have then already established with Virgin. You need a strong brand with the right cost structure.
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An advantage of Eurowings is certainly that are still under construction."
They built in the last months of the network, especially on the long haul. Could the attacks make this expansion in question?
I think it would be a mistake now to act hastily. We have put a lot of effort in there. That's why we do not give up so quickly, even though we now sometimes feel a temporary dent in bookings. An abrupt stop would also send the wrong signal. We would risk making the whole dynamics, we feel just destroyed.
Where do you see more opportunities for expansion?
We have 30 percent market share in Belgium. Here is more in it. We have now successfully established itself as a hybrid supplier - between cheap airline and full service airline. Jetblue and Aer Lingus were here for us role models. The costs for Brussels Airlines are now so low that we can compete with Ryanair and Co. and are also able to offer also service next cheap tickets. And for the passengers are prepared to pay a little bit more. This is our model of success in Europe.
And outside your home market?
In Africa, there are still possibilities for expansion even though we fly to 19 destinations today. So let's look at some of Nigeria. We also examine the frequency increases and the conversion to non-stop flights, where we still fly with a stopover. Finally, we have seen in North America gaps. Our transatlantic business is closely linked to Africa. Many of the passengers from Montreal, New York and Washington have relations with the African continent and rising in Brussels to. As we see even more opportunities. And then we also see opportunities that have nothing to do with our hub. So we are currently considering flights to Mumbai which has been abandoned by Jet Airways. Since there is a demand.
Then you would also expand the fleet...
I come from the consumer goods sector. I am somewhat surprised again and again how often thinks first in aviation to the aircraft and then on to the market. If we see in Brussels Airlines an exciting market and where an interesting destination, we will also take care of course the question of the necessary aircraft. We will continue to rely mainly on leasing.
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Our transatlantic business is closely linked to Africa."
The fleet of Brussels Airlines with an average of 14 years old relative. Is there planned a taper?
We know that we have to do something here. The project is ongoing and until the end of the year we will decide. We look at all options. In this case, the integration into the Lufthansa Group certainly help, because we have more possibilities with their size. Alone we would certainly stay with the Airbus A330 and the A320 family. Together, new opportunities may arise. but it is always important that we can keep the simplest possible structure of the fleet.
If the C-Series CS100 Bombardier for an option to replace the Airbus A319?
In order Ryanair, Vueling and Easyjet to fight on, we opted for a unit fleet. That would no longer be with the C-Series. We will also choose tended to be larger flyer, so replace A319 through A320. So we can reduce unit costs.
That is, the A320 neo family is a prime candidate?
The fuel price will rise again. Therefore, we need the best technology, which give us the highest efficiency. The A320 neo is therefore certainly an issue. This does not mean that we will certainly buy A320 neo. Perhaps there is another equally good solution within the group.
A A320 you have for the Euro painted entirely in red, the colors of the football team. What is your forecast how long the Red Devils remain in the game?
I do not make forecasts, but I have a goal. I want that plane on Belgian National Day on July 21, fly next to fighter jets the Air Force. That would be a first. And with a win on the football championship, there is no reason not to do so.
(Translated by Google Translate)
This article answers several questions I had since quite some time!
Of course: corrected!