Brussels Airlines takes over Thomas Cook Airlines Belgium

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Bralo20
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Re: Brussels Airlines in 2017

Post by Bralo20 » 30 Mar 2017, 10:27

Well, that was bound to happen sooner than later... No surprise there.
Not exactly the youngest birds that will join SN's fleet though, the oldest birds are 16yo while the youngest are 14yo. Wonder which 2 will be transferred to SN.

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Yuqu12
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Re: Brussels Airlines in 2017

Post by Yuqu12 » 30 Mar 2017, 10:30

Wasn't one of the TC-planes already in SN-colours?

airbuske
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Re: Brussels Airlines in 2017

Post by airbuske » 30 Mar 2017, 10:48

Yuqu12 wrote:
30 Mar 2017, 10:30
Wasn't one of the TC-planes already in SN-colours?
OO-TCQ is an ex TC bird.
Best regards,

Airbuske

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Re: Brussels Airlines in 2017

Post by Airbus A330 » 30 Mar 2017, 12:32

Bralo20 wrote:
30 Mar 2017, 10:27
Wonder which 2 will be transferred to SN.
It will most probably be between TCH, TCV or TCW which are the 3 remaining A320-214 powered by CFM56-5B4/P. ;)

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sn26567
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Re: Brussels Airlines in 2017

Post by sn26567 » 30 Mar 2017, 14:55

The absorption of TCAB (I wouldn't call it a merger) means that SN will now compete head-to-head with TUI.

In the past they were more or less complementary, but now that SN takes over all the touristic destinations of TCAB (the only real - and rather weak in the airline business - competitor of TUI), it also takes over the challenge to vie for leisure customers.

That can only be good for the passengers to have two strong airlines in the same markets.
André
ex Sabena #26567

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sn26567
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Re: Brussels Airlines in 2017

Post by sn26567 » 30 Mar 2017, 15:39

Some more information from this morning's press conference on the takeover of TCAB by SN:

1. SN takes over 2 aircraft from TCAB, but the production for TCAB needs more aircraft, that will come from the SN fleet at moments when it is idle, e.g. winter and weekends. Thus, SN needs to take over ALL the flight crew of TCAB (160 pilots and cabin crew).

2. SN will take care of 90% of the production of Thomas Cook Belgium. Some flights will still be carried out by other airlines under existing contracts, e.g. Air Malta to Malta, Tailwinds to Turkey, etc.

3. All the flights carried out for Thomas Cook will be in the timetable of Brussels Airlines as scheduled flights, and no longer as charter flights.

4. SN will thus have a considerable increase in the number of destinations (no less than 24 new destinations) and frequencies to existing leisure destinations. For example, to Tenerife, SN will operate its two own flights, plus the 5 frequencies taken over from TCAB, which means 7 weekly flights or better, a daily flight.

5. SN is discussing with Thomas Cook on how to server some long-haul leisure destinations (Caribbean, North America, Africa, Asia) which Thomas Cook now serves via a change of plane in Frankfurt.

6. The takeover will bring around 1 million new passengers yearly to SN, helping to achieve the goal of 10 million passengers in 2020.
André
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by Sabena youngster » 30 Mar 2017, 19:50

they say there will be jobs lost in TCAB but wat about sabena aerospace who maintains them?

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sn26567
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by sn26567 » 30 Mar 2017, 20:49

Sabena youngster wrote:
30 Mar 2017, 19:50
they say there will be jobs lost in TCAB but wat about sabena aerospace who maintains them?
Indeed, at the press conference it was mentioned that 40 ground jobs "could" be lost at TCAB, but as SN is still expanding, some of these people could be hired again by SN depending on the needs.

Nothing was said about Sabena Aerospace (which anyway has a lot of other customers). Sorry I can't help you on this.
André
ex Sabena #26567

ostair
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Re: Brussels Airlines in 2017

Post by ostair » 30 Mar 2017, 22:17

sn26567 wrote:
30 Mar 2017, 14:55
The absorption of TCAB (I wouldn't call it a merger) means that SN will now compete head-to-head with TUI.

In the past they were more or less complementary, but now that SN takes over all the touristic destinations of TCAB (the only real - and rather weak in the airline business - competitor of TUI), it also takes over the challenge to vie for leisure customers.

That can only be good for the passengers to have two strong airlines in the same markets.
I smell some price fixing here for the near future with TUI.

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sn26567
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Re: Brussels Airlines in 2017

Post by sn26567 » 30 Mar 2017, 23:02

ostair wrote:
30 Mar 2017, 22:17
I smell some price fixing here for the near future with TUI.
Mind you! In the recent past I have often compared prices of TUI fly and TCAB on the same (or similar) dates to the same destinations, and there were often big differences. I don't see why it wouldn't be the same between SN and TUI fly.
André
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Passenger
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by Passenger » 30 Mar 2017, 23:29

ostair wrote:
30 Mar 2017, 22:17
sn26567 wrote:
30 Mar 2017, 14:55
The absorption of TCAB (I wouldn't call it a merger) means that SN will now compete head-to-head with TUI. In the past they were more or less complementary, but now that SN takes over all the touristic destinations of TCAB (the only real - and rather weak in the airline business - competitor of TUI), it also takes over the challenge to vie for leisure customers. That can only be good for the passengers to have two strong airlines in the same markets.
I smell some price fixing here for the near future with TUI.
There is no price fixing anymore. Management of all companies involved (airlines and/or touroperators) meet each other quite often, but they don't dare to discuss a price fixing. Reason: the penalties from the Economische Inspectie / Inspection économique when they are catched are far higher then whatever benefit they could result.

ostair
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by ostair » 31 Mar 2017, 00:45

Passenger wrote:
30 Mar 2017, 23:29
ostair wrote:
30 Mar 2017, 22:17
sn26567 wrote:
30 Mar 2017, 14:55
The absorption of TCAB (I wouldn't call it a merger) means that SN will now compete head-to-head with TUI. In the past they were more or less complementary, but now that SN takes over all the touristic destinations of TCAB (the only real - and rather weak in the airline business - competitor of TUI), it also takes over the challenge to vie for leisure customers. That can only be good for the passengers to have two strong airlines in the same markets.
I smell some price fixing here for the near future with TUI.
There is no price fixing anymore. Management of all companies involved (airlines and/or touroperators) meet each other quite often, but they don't dare to discuss a price fixing. Reason: the penalties from the Economische Inspectie / Inspection économique when they are catched are far higher then whatever benefit they could result.
OK, I respect your words.
Later on next season 2018 I will be comparing prices.
Hope you are wrong.

Sai
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Re: Brussels Airlines in 2017

Post by Sai » 31 Mar 2017, 01:23

Does this mean Eurowings actually took over TCAB or is it something SN can/could decide? Or from which perspective do you need to look at this 'merger'?
and...
sn26567 wrote:
30 Mar 2017, 15:39
(...) 5. SN is discussing with Thomas Cook on how to server some long-haul leisure destinations (Caribbean, North America, Africa, Asia) which Thomas Cook now serves via a change of plane in Frankfurt. (...)
In Belgium the long-haul leisure market is a rather small one, I would think?
Just not that many leisure passengers are going on an exotic holiday to fill planes every day or a few times a week to a destination, given the supply will increase, to make it profitable.

When TCAB & TUI did their long-haul flights to Asia & Africa (CMB, BKK, MBA,...) together in the past it was possible due to fact that the 2 biggest local tour operators combined could fill the planes ...On top of that the pressure on the price on the same market of the Middle-East airlines (e.g for leisure to Asia)

I would think it will be rather difficult to compete with wide-bodies to the same (leisure) destinations from BRU without both losing (SN/TCAB & TUI).
Impossible to fill so many planes weekly/daily with mainly Belgian pax (except for 2 or 3 typical long-haul destinations in the Carib. maybe).
Thats why TCAB sent their leisure long-haul pax via FRA as they couldn't fill the planes themselves...
Or am I mistaken?

Inquirer
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by Inquirer » 31 Mar 2017, 05:13

As to the above remark, i think Brussels Airlines may be well placed to sustain an entry in these Caribbean (or other) leisure markets from Brussels thanks to them running a huge European feeding network to support any such entry, not to mention their colleagues at Eurowings might lend them a helping hand too in transferring some of their suboptimal transfer volume from Germany in an act of internal consolidation.

Depending on just how big a share the local package holiday customer segment is in relation to the total customer base on those routes at TUI, some of their routes to the more exotic places which would see direct competition may suddenly come under some serious threat even, if they start loosing a bit too many unbound customers to Brussels Airlines! Very interesting evolution for sure, if indeed Brussels Airlines would aim to go heads on with TUI on some of those routes!

I'll step out of my way to say a route to Miami would likely be very high on the list.
Alternatively, they could focus on different US markets to avoid too much competition at home, in which case a launch of a nonstop flight to California suddenly seems more plausible.

Maybe it would be interesting if somebody could lists all of the intercontinental leisure routes currently flown from BRU to get a better idea of which markets they might start to consider?

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Yuqu12
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by Yuqu12 » 31 Mar 2017, 09:27

All in all, this makes it "perfect" for EW to take over SN, as they will have the exact same business model now: point to point connections at relatively low prices and then a long haul network (with some leysure destinations there). I think this step from SN (or LH) is a very clear indication that SN will merge into EW as they will start operating the same sort of connections.

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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by alex » 31 Mar 2017, 13:40

I wonder how TCAB crew will be integrated in SN... if they are!
Will they be kept apart, flying only the old Thomas Cook flights or will they become regular SN crew?
I wonder what unions will say about that. Seniority list integrations are always a nightmare!

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sn26567
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by sn26567 » 31 Mar 2017, 14:48

Hi, Alex. Welcome to Luchtzak.

You make a valid point. Integration of staff coming from other airlines is a universal problem. We've seen it here in Belgium when SN took over VEX. In that case, the problem was easier, as VEX was flying B737s vs the A320s of SN, hence the pilots remained with their type of aircraft.

In the current case, both airlines are flying the A320s, so I guess that the pilots will be inter-changeable. Remains the problems of seniority. I don't know how the airlines will solve it. But I can already guess that there will be dissatisfied pilots (and cabin crew) in both airlines...
André
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saratoga
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by saratoga » 31 Mar 2017, 17:03

I am more wondering how this all would fit in the eurowings structure. (?)

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sn26567
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Re: Brussels Airlines takes over Thomas Cook Airlines Belgium

Post by sn26567 » 31 Mar 2017, 18:27

saratoga wrote:
31 Mar 2017, 17:03
I am more wondering how this all would fit in the eurowings structure. (?)
The point-to-point route structure of TCAB correspond perfectly to the Eurowings philosophy!
André
ex Sabena #26567

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