Interview of CEO Gustin: Brussels Airlines renamed Eurowings? ...and other topics

[convair]

BTW, I think Eurowings code is EW, not (yet) SH.

I think Treeper means short haul (SH) and long haul (LH), not the airline code

yup, that's the case

Sure! Sorry for that.

[MSS658]

I wonder what the whole Eurowings thing is actually about..
While (in my opinion) it's sense-less to rebrand a whole airline (with a bit of a different philosophy than LH/OS/LX.... ) It would't harm at all to base a few CRJ900s to replace the existing Avro's that are phasing out.

SN could deploy those on routes that wouldn't have enough demand for the 319/320! Wouldn't it be cheaper then the current Flybe/Airpost Europe/bmi/Tryolean flights operating for SN ?

[RoMax]

I wonder what the whole Eurowings thing is actually about..
While (in my opinion) it's sense-less to rebrand a whole airline (with a bit of a different philosophy than LH/OS/LX.... ) It would't harm at all to base a few CRJ900s to replace the existing Avro's that are phasing out.

SN could deploy those on routes that wouldn't have enough demand for the 319/320! Wouldn't it be cheaper then the current Flybe/Airpost Europe/bmi/Tryolean flights operating for SN ?

Eurowings is becoming an Airbus-only airline, the CRJ's are going (back) to Lufthansa CityLine (replacing the Embraers going to Austrian).

[flymd11]

This articles gives a few more details.

The idea is not a just a rebrand but a full "integration" of SN into Eurowings:
http://aviationweek.com/awincommercial/ ... -decisions

LH Group would take over the remaining 55% stake in SN, retire the brand and integrate operations/management into Eurowings. One major question is the longhaul network (SunExpress?).

Decision in 2H 2016.

[sean1982]

Sad news indeed, but I cant say im surprised. This whole story was leading to this. We will once again be a country without a national airline :/

[sn26567]

This articles gives a few more details.

The idea is not a just a rebrand but a full "integration" of SN into Eurowings:
http://aviationweek.com/awincommercial/ ... -decisions

That looks terrible! Would that mean the end of Belgian aviation (SN German, JAF as well, Thomas Cook English, VLM whatever...) ?

Would you have a copy of the article to share with us (the web article is reserved for paying subscribers) ?

[Boavida]

This would be an absolute horror-scenario! So they would takeover SN to kill it?! Why SN and not OS or LX? Is Belgium such a worthless country that it doesn't deserve its own 'national' carrier? Is that the way Germany/LH looks at us? And Gustin/SN would just let this happen? I'm in shock.

In this case, can't they look for a different airline group for a takeover, a company who would keep the Brussels Airlines brand?

[crew1990]

Pffff relax, those kind of article "shock" are really boring, Brussels Airlines will stay Brussels Airlines.

[Avroflyer]

Indeed relax I don't believe that it would come that far.

Unlike other LH Group airlines SN already catches the EW segment of the market trough its Light&Relax and Check&Go fares, so why would you set up a 'unknown' brand while the known and proven successful brand already catches that segment.

Besides they would encounter a problem on the long haul sector too because Brussels Airlines is known in Africa but Eurowings on the other hand...

[RoMax]

And Gustin/SN would just let this happen? I'm in shock.

If SN (and especially Gustin as the CEO) wouldn't be so tough on fighting LH in their plans with Eurowings in Brussels, there wouldn't even be any question or discussion about the whole plan anymore. SN is doing everything it can to show it is a valuable, independent and successful brand/company and from what I heard that is causing quite some friction with the LH management.

It is from one point understandable, hardly 50 aircraft is 'marginal' in the LH Group and in their constant effort to save money, the Germans don't see the added value of having a seperate company for such a small operation. However they seem to fail seeing the real added value of SN, their currently very well working business strategy, the strong brand image they have in Belgium, Africa and even beyond (which took them a lot of effort), etc.

We'll see what happens, but once they own SN for 100%, I wonder how much influence Gustin and his team will still have...

[crew1990]

I still don't think that Brussels Airlines will be part of Eurowings, at least not entirely. The flight to Berlin, Hamburg, Hanover, Bremen and Nuremberg and even Vienna, Geneva and Basel but that's it.

50 aircraft is not such a small operation, and Brussels Airlines is booming nowadays, having the biffes increase of capacity than the whole group. Brussels Airlines even has as much long haul destination (of course less frequencies) than Swiss.

[Conti764]

Well, I always said LH wasn't the way to go for SN... I just don't trust Germans... They closed down 'our' car factories, they might dissolve 'our' national airline,...

Such a pity SN didn't end up in IAG/Oneworld.

[Flanker2]

Isn't it what some of us were saying for over 7 years now?
LH buys SN, shifts the longhaul to FRA and or MUC, changes the name to something generic.

Some of you SN guys were supporting this, but it looks like now you will be working for a generic low-cost airline if you're lucky enough not to be replaced by German crews and/or management.
The SN take-over might be as good as it can be bad for the workforce.

Also, I don't see the SN maintenance base in BRU surviving a Eurowings integration for more than 2-3 years.
There is LH Technik across the field and except for a few technicians hauled over from SN, what more will they need?

This was a long time coming. It's sad to see another Belgian airline mismanaged to disappearance.
The IAG/OW scenario would have made more sense now indeed, even though I was personally against it back then.

So what happens with the hundreds of millions of taxpayer money invested in preserving Belgian jobs when all those jobs are shipped away from Belgium? I hope that the government doesn't let that slide under the door.

Euroings is not competitive enough as a brand or as an operation to keep up with FR and U2. The European network will see significant downsizing in no time.

[sn-remember]

Indeed 1W would have been a better alliance for SN.
One has to admit that the way BruAir was managed during the first 10 yrs of existence was terrible, no ambition, no goals/strategy, no investment in a fast moving context. They did not develop a convincing business "à la Swiss" (or TP or EI or AY for that matter) while it was still time. Admittedly with Gustin, it seems they are trying to change this .
..
While the airtransport business needs brand recognition and service distinction, the Eurowings setup conveys the opposite, a lowcost blah thing. Mind you, such offering is needed but is it appropriate for AFI service and beyond? Do they want to go "à la TK" ? Offering cut fares with s/aisled equipment ? But TK have become a strong brand with ww service recognition. Could Eurowings achieve the same ? .. I have my doubts bcs they are the shadow of LH ..
So, one has to ask what's the plan concerning AFI which is the bread and butter of SN ? (stopping nbo was an error)
What about the Star JV on the N-A ?
What's the added value of SN business ?
Should they give all that away, it means the death of belgian wings.
It seems to me (and anybody sane) hardly imaginable and totally unacceptable.

[travellover]

IF the scenario of dilution and loss of identity becomes clear, are there possibilities to divorce with LH group and prevent them to buy the remaining 55% shares to SN holding ? IS SN viable without LH (as not a fatality) ? Within * increasingly present at BRU and very related to SN. SN proves now its ability of management (network, fleet, human ressources, reaching black figures in 2015) without significant LH investments. Not the same story or the same fleet, but isn't AY growing again and again in 1W in a stand alone position ?

[Conti764]

IF the scenario of dilution and loss of identity becomes clear, are there possibilities to divorce with LH group and prevent them to buy the remaining 55% shares to SN holding ? IS SN viable without LH (as not a fatality) ? Within * increasingly present at BRU and very related to SN. SN proves now its ability of management (network, fleet, human ressources, reaching black figures in 2015) without significant LH investments. Not the same story or the same fleet, but isn't AY growing again and again in 1W in a stand alone position ?

I'm pretty sure SN will still be very welcome in Oneworld, since they still have something to offer...

The real issue is getting rid of Lufthansa. I don't know if and how they could achieve this, only thing I could imagine is dissolving SN Airholding, take over the fleet and start with a 'new' company, with the support of IAG, Brussels Airport and other interested parties...

But I can't imagine LH just getting rid of SN...

[sean1982]

With all the loans SN has with LH, there is no way to buy themselves out at any time, unless IAG would take over the loans for them which would be highly unlikely.

[RoMax]

With all the loans SN has with LH, there is no way to buy themselves out at any time, unless IAG would take over the loans for them which would be highly unlikely.

Lufthansa said in late 2015/early 2016 that they will decide on buying the remaining 55% of SN this year, or to sell them completely. So it is an option. In terms of the loans, that wouldn't change much compared to the current situation (being a minority owned company), SN would just have to pay it back (and the new owner probably would need to give certain guarantees that they will be able to).

[sean1982]

Buying themselves out of LH is no option with a new owner either cause that would mean having to leave star alliance and all their codeshares and associated profits. BRU has become a star hub so it wouldnt only impact SN but also the airport greatly. Exactly why you should never put your eggs in one basket ... and they did, again.

[sn26567]

Lufthansa has already its "Eye of Moscow" in SN's management: Lars Redeligx. Every time I had the opportunity to talk with him (the last time during the presentation of the Red Devils partnership), he seemed very much in line with all the decisions taken recently by SN. Therefore I doubt that there is really a difference of opinion between the LH and SN management teams. Lars Redeligx might be the best supporter of SN inside LH. Hence my opinion is that the rumours of an integration of SN into EW are there only to encourage SN to do even more savings. A threat, but not a goal!