Brussels Airlines future and financial perspective

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Boeing767copilot
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Re: Brussels Airlines future and financial perspective

Post by Boeing767copilot »

Only a small part of that impact is offset by payment of political violence insurance that the German parent company Lufthansa closed. Brussels Airlines has it already received 17 million euros. In 2016, the company has additionally 29 million euros additional provisions booked for the expected further payouts. In total, Brussels Airlines is hoping to recover 105 million.

DeltaWiskey
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Re: Brussels Airlines future and financial perspective

Post by DeltaWiskey »

Thanks, and congratulations with your 1000th post! :)

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sn26567
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Re: Brussels Airlines future and financial perspective

Post by sn26567 »

Bel33 wrote: 16 Mar 2017, 15:45 Congratulations to the management and staff members of Brussels Airlines for the performance in 2016! The business plan of our company is definitively the good model for EW!
What CEO Bernard Gustin said about it is that Eurowings will evolve to the SN model rather than the opposite. SN has a lot more connecting flights than EW which is still mainly point-to-point. But in the future, EW will take SN as its model for connections to also become a hybrid airline.

SN should integrate EW and not the opposite!
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teddybAIR
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Re: Brussels Airlines future and financial perspective

Post by teddybAIR »

sn26567 wrote: 16 Mar 2017, 22:58 SN should integrate EW and not the opposite!
Electrabel-Suez or Total-Fina ring a bell?

Inquirer
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Re: Brussels Airlines future and financial perspective

Post by Inquirer »

DeltaWiskey wrote: 16 Mar 2017, 18:28 At the same time SN reported a 20 million operational profit, Eurowings announced a loss of €91 mio, with half of it being attributed to start-up (one time) costs. As far as I understood, SN is showing EW the way to go.

The best source about the financial impact of the attacks I could find is on http://deredactie.be/cm/vrtnieuws/binnenland/1.2919808

Incurred costs of attacks: 105 million; covered by insurance as of today: 46 million (and still counting).
Quite an achievement indeed!

Taking the figures quoted by 'deredactie' at hand for a minute, it means one could imagine a profit filtered from the dramatic one-off events of March 22th of somewhere around 80M euro (20M + 105M - 46M)!

As was pointed out above, their sister airline Eurowings (of very roughly almost double their size) meanwhile lost some 45M euro on their far steadier operations if one takes out non-recurrent start up costs.

I think this is something which will not remain unnoticed in a boardroom whenever they need to take decisions on which business model is most resilient and most suitable for future profit generation of an integrated group.

I've read André quoting Eurowings will be turned into a Brussels Airlines type of company, rather than the other way round: based on this back of the envelope comparison between the 2 airlines' financial performance, that would indeed seem like a good idea.

Boeing767copilot
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Re: Brussels Airlines future and financial perspective

Post by Boeing767copilot »

Will Gustin leave the company as CEO?

De Standaard online 13/5:

Komende dinsdag worden op de aandeelhoudersvergadering twee nieuwe bestuurders voorgedragen bij Elia: Bernard Gustin, de ceo van Brussels Airlines, en Rudy Provoost (ex-Philips en ex-Rexel). Gustin werkte in het begin van zijn carrière bij de consultancygroep Arthur D. Little, waar hij de transportpraktijk leidde. Sinds 2008 is hij aan de slag bij Brussels Airlines, onderdeel van Lufthansa. Eerst als co-ceo, sinds 2012 als ceo.

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sn26567
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Re: Brussels Airlines future and financial perspective

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Boeing767copilot wrote: 13 May 2017, 09:27 Will Gustin leave the company as CEO?
Bernard Gustin can very well remain at the helm of Brussels Airlines while becoming Director at Elia, a job that should not take more than a few hours per month.
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Re: Brussels Airlines future and financial perspective

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Lufthansa subsidiary Brussels Airlines must continue to reduce its cost base as it faces growing competition from low-cost carriers (LCCs) in its home market, CEO Bernard Gustin told ATW. “We now have a cost base that is 15% lower than [it was] in 2012.” However, he said costs for the Belgian flag carrier must decline “another 15% within the next three to five years.”

http://atwonline.com/airlines/ceo-bruss ... further-15
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mariareese
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Re: Brussels Airlines future and financial perspective

Post by mariareese »

With the current growth trend and considering all factors constant, I think that a 100 million profit is appearing on the horizon for 2016.

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sn26567
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Re: Brussels Airlines future and financial perspective

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mariareese wrote: 09 Nov 2017, 07:26 With the current growth trend and considering all factors constant, I think that a 100 million profit is appearing on the horizon for 2016.
Welcome to our website.

I guess you mean 2017?
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DeltaWiskey
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Re: Brussels Airlines future and financial perspective

Post by DeltaWiskey »

mariareese wrote: 09 Nov 2017, 07:26 With the current growth trend and considering all factors constant, I think that a 100 million profit is appearing on the horizon for 2016.
Assuming you mean 2017, what is your prognosis based on? It looks like that figure is pulled our of thin air. I would be amazed if if is even half of that.

Passenger
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Re: Brussels Airlines future and financial perspective

Post by Passenger »

DeltaWiskey wrote: 09 Nov 2017, 18:11
mariareese wrote: 09 Nov 2017, 07:26 With the current growth trend and considering all factors constant, I think that a 100 million profit is appearing on the horizon for 2016.
Assuming you mean 2017, what is your prognosis based on? It looks like that figure is pulled our of thin air. I would be amazed if if is even half of that.
For 2016, they've realized a nett profit of 15m, despite the 22/03/2016 attacks.
First figures for 2017 are excellent. So they will most probably surpass their 2015 result (+40m).

Inquirer
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Re: Brussels Airlines future and financial perspective

Post by Inquirer »

Actually, one doesn't need to do much guessing any longer:

Brussels airlines is a consolidated part of a stock listed company, so they have to offer sufficient guidance as to their actual financial performance on regular intervals, including that of their subsidiaries like Brussels Airlines. It's not always easy to find it nor is it fully clear exactly what is counted, but from the latest interim report of Lufthansa it can be derived that Brussels Airlines have contributed some 30+ million euro to the group's result this year, with Q4 traditionally being the strongest, so I'd say they will end somewhere between 40 and 50 million euro profit for this year.

Of course, the net result can change by possible one-off effects or accounting practices linked to their fleet change (exit AVRO, introduction of newer A330s and those A340s to be used from Germany), but the sustained operational profitability is clearly there now, probably much to their own relief.

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sn26567
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Re: Brussels Airlines future and financial perspective

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The Belgian State lost 60 million euros on the rescue of Brussels Airlines

In 2002, the Federal Holding and Investment Company (SFPI/FPIM) granted a loan of 125 million euros to SN Airholding, the parent company of the Brussels Airlines company born a year earlier on the ashes of Sabena. In 2009, shortly after Lufthansa became the company's largest shareholder (with 45%), this loan was partially converted into non-voting beneficiary shares. It was when the company needed money and failed to get a single euro from Belgian private investors. Only the Germans of Lufthansa had accepted to grant a loan of 100 million. The public holding company did not bring cash, but it was still a financial boost. "When Mr Davignon (Chairman of Brussels Airlines) recalls that at that time no one in Belgium was ready to intervene, he forgets to say that the SFPI/FPIM has turned debt into capital," says Koen Van Loo, CEO of SFPI/FPIM.

When Lufthansa became a 100% shareholder of Brussels Airlines in 2016, and in accordance with the conditions set in 2009, the beneficiary shares were cancelled but the German company still provided a guarantee on a debt of 50 million. The SFPI/FPIM thus registered between 2002 and 2016 a loss of 75 million out of the 125 million. From this loss, we must deduct the interest paid by Brussels Airlines since 2002, about 15 million. The net loss so far amounts to 60 million.

Source: La Libre Belgique

http://www.lalibre.be/economie/libre-en ... 58ed5d3116
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Passenger
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Re: Brussels Airlines future and financial perspective

Post by Passenger »

Without the intervention from Lufthansa, the Belgian State probably would have lost everything.

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sn26567
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Re: Brussels Airlines future and financial perspective

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Passenger wrote: 17 Feb 2018, 19:02 Without the intervention from Lufthansa, the Belgian State probably would have lost everything.
But elsewhere in thé article the journalists recall the dirty trick used by Lufthansa to pay almost nothing for the last 55% of Brussels Airlines.
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