700 jobs threatened at Brussels Airlines?

[sn26567]

The climate is more tense than ever at Brussels Airlines between the unions and management. A social plan could be announced soon: the dismissal of a "small" one-fifth of the number of pilots - 80 to 100 people out of 500 - is clearly contemplated.

Negotiations that started nearly one year ago as part of the savings plan "Beyond 2012-2013" are indeed broken.

Worse, other sources go even further by saying that 20% of employees of Brussels Airlines - which has about 3,500 employees, would be made redundant as a result of this vast restructuring plan. The main reason: European traffic is struggling because of the economic crisis, and especially because of aggressive competition from low-cost airlines such as Ryanair and EasyJet.

Intercontinental routes, however, are doing well. Opened this summer, flights to New York have high load factors and there is even talk of strengthening links to the United States. Also a good result for Brussels Airlines: flights to Africa that carry "only" 11% of the passenger traffic of the company still represent 30% of sales in value. It is the European network that causes most of the losses. From 84 million euros in 2011, the deficit would indeed exceed 100 million this year and as Lufthansa - which owns 45% of the capital - is in no hurry to buy the remaining shares (55%), thus the current direction is faced with a real problem of recapitalization. Hence the desire to eliminate some flights and reduce the workforce.

We already know that the fixed-term contracts than 160 members of cabin crew will not be renewed at the end of October, but it is mainly due to the removal of both the Boeing and the Avro RJ85 fleet which would cause the dismissal of a few hundred pilots and hundreds of members of the administrative staff. In total, more than 700 jobs would be in jeopardy as well.

More details (French) in Trends: http://trends.levif.be/economie/actuali ... er-RNBTECZ#

[convair]

The article in Trends mentions 2 Boeing and 10 Avro. Since there are only 3 RJ85 left, could some of the RJ100 be going as well?
Very sad for the people involved, but does SN have the choice?

[sn26567]

From L'Echo and De Tijd, serious financial newspapers in Belgium:

Brussels Airlines: 250 jobs on the spot

New rumors about the number of jobs that would be lost as a result of the plan "Beyond 2012-2013". Rumors now evoke the dismissal of 250 crew members. Chairman of the Board of Directors of Brussels Airlines, Viscount Etienne Davignon, denied these rumors.

Tension increases in Brussels Airlines where discussions are underway to convince workers of the merits of future drastic measures to save the Belgian airline. According to information gathered by the newspapers, the subsidiary of the Lufthansa Group will soon initiate a Renault procedure, synonymous with layoffs of a significant number of workers. But under the first phase of the Renault procedure, leaders should propose solutions to workers to avoid having to resort to layoffs.

One of the tracks is the generalization of reduction of working time for all aircrew (pilots, flight attendants), or about 1,800 people. And for a period of two or three years. The company hopes to revive the financial balance at the end of this term.

But in case of rejection of this proposal by the workers, Brussels Airlines would have no choice but to proceed to the dismissal of nearly 250 aircrew.

The cancellation of certain European routes is also on the agenda.

According to sources familiar with the matter, the strategy adopted to ensure a better balance between long-haul and medium-sized destinations produces results. But the high cost of fuel tends to overwhelm the savings so far. Therefore the need to redress the balance.

This is not the first time that the figures circulating on the details of the savings plan "Beyond 2012-2013". A few weeks ago, newspapers referred to the layoff of fifty pilots. "Workers tell us what they have heard. However, as a union, we have not had contact with management for a month already. Negotiations within the framework of the restructuring plan 'Beyond 2012-2013' are suspended, "said Olivier Van Camp SETCa. The union added that such ads restructuring had been propagated by the media in the past. "It may also be a tactic to pressure management."

Etienne Davignon denies

Chairman of the Board of Directors of Brussels Airlines, Viscount Etienne Davignon, denied on Wednesday night during the RTBF television news, rumors about the restructuring looming on the airline, according to which jobs, or 1 out of 5, would be threatened.

"We must understand the word restructuring," he said on public television antenna. "If you link the restructuring inevitably automatic loss of jobs, I say clearly not. Now if you talk about adaptations to ensure the future development of the company in tolerable conditions for Brussels Airlines and its staff, I say yes. "

Etienne Davignon added, in conclusion, that the implications of these adaptations would be discussed with the staff of the company.

Details in L'Echo (French): http://www.lecho.be/actualite/entrepris ... MENT&ckc=1

[sn26567]

Somebody close to the negotiations told me the response of Brussels Airlines' management to these rumours:

These rumours are completely wrong, 700 jobs are not at stake. Temporary contracts will not be extended, but this happens every winter.

The Brussels Airlines management is talking about a negative campaign to destabilise Brussels Airlines, and negative news is not good to attract customers (passengers), investors, etc....

[Acid-drop]

negative campain ? negative emphasis maybe ... but there is seldom smoke without fire ...
It simply looks like a leak, and the communication team of the company is clearly trying to get it back under control. The way of communicating is sometime more important than the message.

[Inquirer]

It simply looks like a leak, and the communication team of the company is clearly trying to get it back under control. The way of communicating is sometime more important than the message.

I don't think it is a leak in fact, because E.Davignon sounds quite clear in his message and denying factually correct info just because it came out too soon, wouldn't be very smart from him.

I think what we see here is what we have for instance also seen at Ford Genk last week: a restructuring is announced internally, after which a lot of rumours and speculation happens as to the possible consequences, the most spectacular ones making it to the front pages.

Unions are often a good source of all this, because they obviously have a benefit in dramatising things.
Just look at the hero's welcome of the Ford unions in Genk, upon return from Detroit, where they got confirmation none of the rumours they had first spread themselves were justified....

Successfully "solving" a self-created problem, Il faut le faire!

[dna]

Off-topic

Just look at the hero's welcome of the Ford unions in Genk, upon return from Detroit, where they got confirmation none of the rumours they had first spread themselves were justified....

I think you will find that these rumours were first reported in the Wall Street Journal, a source that some here would call a serious newspaper.

[Inquirer]

The question is: where did the newspaper get them from? From a source 'on site' in Genk? Thus bringing it all back to the very origin, I.e. those working at the plant and speculating wildly due to a lack of factual information...

Besides, serious newspaper or not, the rumours turned out to be false at Ford Genk.

[Flanker]

The estimated losses started off at a budgeted 20 million then moved on to 80 million and now we re talking about more than 100 million.
There's not much equity left, LH doesn't seem to be very supportive, there isn't much hope for improvements down the line. The management are acting too slow,they're in defense mode.

Ryanair qua Ryanair la Ryanair su Ryanair giu.
SN's main competitors are BA,AF,AZ,IB,TP,TK,KL,....not Ryanair.

[RoMax]

Ryanair qua Ryanair la Ryanair su Ryanair giu.
SN's main competitors are BA,AF,AZ,IB,TP,TK,KL,....not Ryanair.

SN's main competitor on the local Belgian-Europe market IS Ryanair.

there isn't much hope for improvements down the line. The management are acting too slow,they're in defense mode.

SN said to their personell and unions that they are working on a much more aggressive plan to possibly replace "Beyond 2012-2013". That's not what I call "in defense mode".

There's not much equity left, LH doesn't seem to be very supportive,

LH is very happy with the JFK results and is 100% supportive towards the development of the long haul network, the only major thing they demand is that SN achieves to restructure their European network to reduce the losses and eventually return to profit.

[BrightCedars]

It's ironic that the core reason for Brussels Airlines' existence, connecting Brussels with the rest of Europe, is putting the entire company in jeopardy.

It is necessary for them to make the European operation profitable as this is the only way to guarantee it's future existence, which is strategic for the country's economy. Whether it means they should go down the low-cost way or re-size their operation to fit mostly business and connectivity needs is for them to decide.

I believe they need to choose for simplicity. A single aircraft family (offers a bit of flexibility in load and yield management) to fit all routes.

The majority of people who fly in and out of this country just want the highest value for the lowest money, which is an impossible equation to turn a profit.

B.flex and B.light seemed to be a good answer but it turns out it's not helping the bottom line.
I also doubt they can easily cut their overhead costs, I don't believe they are overpaid or overstaffed as it's been a lean structure growing carefully for the last 10 years.

As for LH, their ownership shouldn't be seen as a blank cheque for losses, those times are past.

I hope the solution proposed by the management will not be too hard on the people capital of the company, while at the same time putting it on the right track to sustainability.

[papysn]

Hi,

As i told already before, SN has no clear positionning:
Not cheap enough to fight with Ryanair.(Sabena structure)
Not good enough to compete with others good Cy.(Light is a crap!)

If you can choose you take the best (if quality matters) or the cheapest (if money matters)....

Regards.

K.

[Flanker]

As i told already before, SN has no clear positionning:
Not cheap enough to fight with Ryanair.(Sabena structure)
Not good enough to compete with others good Cy.(Light is a crap!)

If you can choose you take the best (if quality matters) or the cheapest (if money matters)....

Regards.

K.

That's a good rephrasing of what I wrote.
Between trying to reduce costs further (but then they have to make the Avro's fly on water) and improving service and quality, I think that the best solution to achieve both was to offer a top notch business class product and high frequencies using an entire fleet of Q400's.
Hence, it was important to invest in a fleet of Q400's while they still could, now it's too late.

The ugly marketing is also a waste of money, they should be more creative.

I already gave up on this company, if it's not in 6 months, or in 18 months, it may even be put on life support by LH for 3 years but I don't see anything coming out of it.
The people capital on the operational side is ok, with some excellence here and there, but I can see that many people working in the B'house and B32 are in way over their head, many even amateurish (except for the way they present themselves).

Ryanair's market is tough to go after especially considering the crappy service SN provides.

Value for money is very low, if you charge a customer 1000 euro for 2 x 1 hour flights, your airplane must be equipped with a marble floor, pay-tv and a very open-minded hostess.
Instead you get a cramped seat on an old airplane that smells and a seat next to you to share with your neighbor, a cheap but ok meal, a glass of cheap champagne, a yellow cabin, and an old hostess who's watching you to make sure that you're not looking at her behind every time she kneels to take something out of the food cart. The flights often not on time, the airport more like a shopping mall than a terminal, long check-in queues while 2 or 3 check-in supervisors spend time chatting with eachother while regulating traffic of the queues or showing pax how they can check-in themselves, while it's faster if they would do it for you...
The mechanics dressed in very dirty and oily clown suits, dragging tool boxes that look like left-overs from WWII, a handling agent that doesn't give a damn, bad UM and wheelchair pax management that has cabin crew waiting for ages before an Axxicom guy shows up, delaying the next flight.

Well it may appear harsh but such is how the mind of the customer works and customers notice everything.
The more they pay, the more they notice. There were flights where I noticed all of the above simultaneously on one flight.

I prefer to drive for short missions up to 500km or longer missions for up to 1000km, otherwise I will take Ryanair and rent a car locally.
For trips of up to 500km one-way, by the time you arrive at the airport, check-in, wait, board, you could have been already half-way with your car. Then by the time you arrive at the destination airport, de-board, get your luggage and your rental car and walk-out the airport, you're already checked-in at your hotel.
Little difference: You spend 75 euro's on diesel (return) don't have to walk or drag your suitcase for 1 meter, you can stop when you want as you're not bound by any schedule but your own and you're totally independent from the entire chain of aviation professionals who must perform their job correctly for you to arrive at your destination on time, and from weather.
Plus you save time and resources by not having to look up a ticket online, compare fares/schedules, and if you have luggage or material, you save a lot of time on the packing/unpacking, etc...


Now remind me, what do we need SN for?

[shockcooling]

Great, you're back, it was becoming a bit boring

Where as I'm seeing almost everything happening everyday, just another point of view (the pointy part), I can absolutely agree on your points for: check-in, handling agent, axxicom, pricey tickets (not me, but friends do complain a lot), no cabin consistency (some AB have screens, some don't...).

Concerning the mechanics, pfff, I also find doctors/surgeons wearing Crocs look like clowns...

Food in flex/business is indeed not to bad, even in light you get a good choice, it just stays pointless for <1,5hr flights. Just give everybody during boarding a small can of water, just next to some newspapers...

But you're following remark, euhm...

For trips of up to 500km one-way, by the time you arrive at the airport, check-in, wait, board, you could have been already half-way with your car. Then by the time you arrive at the destination airport, de-board, get your luggage and your rental car and walk-out the airport, you're already checked-in at your hotel.
Little difference: You spend 75 euro's on diesel (return) don't have to walk or drag your suitcase for 1 meter, you can stop when you want as you're not bound by any schedule but your own and you're totally independent from the entire chain of aviation professionals who must perform their job correctly for you to arrive at your destination on time, and from weather.
Plus you save time and resources by not having to look up a ticket online, compare fares/schedules, and if you have luggage or material, you save a lot of time on the packing/unpacking, etc...


Now remind me, what do we need SN for?

Now remind me, what do we need 'airlines' for?

[SNam]

I agree with Flanker on some points, certainly the ground operations can have some reorganization.

While walking through the departure zone you often see SN staff chatting with each other while passengers are suffering from self check-in. The same goes for gate agents, flights from 0 up to 50 they handle with 2 gate agents. Is this really necessary?

Not to mention the load control they are planning to do themselves. They already do it for the Africa flights.
While most companies are outsourcing....

On Radio 1 there was a lady from an airline audit company speaking about SN, she mentioned some interesting things.

For example company culture(the SABENA spirit (good or bad) is till alive at SN) and she took Aer Lingus as an 'example' of the direction SN could go.

Regards,

[papysn]

On Radio 1 there was a lady from an airline audit company speaking about SN, she mentioned some interesting things.

Hi again,

That's just the kind of thing i hate to hear...Auditeurs are turning all around those days, being pay $$$$ per minute "work", they are comparing airlines with WC paper....

Air industry don't need more auditeurs... we've seen enough of them...we need Real Managers,people with a "vista" and a plan for a future.

Thats's also valid for the all industry...and that's what is missing at Brussels Airlines.

Regards.
K.

[airazurxtror]

For example company culture(the SABENA spirit (good or bad) is till alive at SN) and she took Aer Lingus as an 'example' of the direction SN could go.

Christoph Mueller, come back !

[Atlantis]

Value for money is very low, if you charge a customer 1000 euro for 2 x 1 hour flights, your airplane must be equipped with a marble floor, pay-tv and a very open-minded hostess.
Instead you get a cramped seat on an old airplane that smells and a seat next to you to share with your neighbor, a cheap but ok meal, a glass of cheap champagne, a yellow cabin, and an old hostess who's watching you to make sure that you're not looking at her behind every time she kneels to take something out of the food cart. The flights often not on time, the airport more like a shopping mall than a terminal, long check-in queues while 2 or 3 check-in supervisors spend time chatting with eachother while regulating traffic of the queues or showing pax how they can check-in themselves, while it's faster if they would do it for you...
The mechanics dressed in very dirty and oily clown suits, dragging tool boxes that look like left-overs from WWII, a handling agent that doesn't give a damn, bad UM and wheelchair pax management that has cabin crew waiting for ages before an Axxicom guy shows up, delaying the next flight.

Hi Flanker,

You have to explain me what the "dress code" of mechanics, the mall of Brussels Airport and many other things has to do with the price SN asks for their flights.

Nothing.

No passenger will care how the mechanics look like, dirty or not, like a clown or not. Fact is that their clothes are according to the safety regulations. If they are dirty then it is up to them to clean them.

The mall of Brussels Airport? Everybody has his or her opinion about it but fact is that crisis or not it is still a very good money maker for Brussels Aiport. Our shops, beverages, restaurants overthere are very good, solid and stays for a very long time. At least we have shops without people who are shauting to visit them or very laudy music or some commercials throughout the whole airport. I'm very glad we don't have it. People are also very happy with those shops, restaurants. Most of them are turning very good figures. People have also more then enough seats in the terminal to take a rest. Even, I can say more, some parts of the airport (terminal) are UNDERUSED.

Now back to SN. I use them every month several times. Prices are indeed not cheap for what you get. Business is rediculous for Intra-Europe. You don't receive the service you have to receive. That's why business is almost empty at every Intra-EU flight. Meals at B-Flex can be a lot better. B-Light is a joke.
But if you try to search for a good price via their website? Try several times a day, you will see that it change a lot and from time to time you can have a really good price.

If we compare SN with other airlines like f.e. LOT on the same route to Warsaw then I prefer LOT with an excellent service, very good and clean airplanes, good seat pitch AND a lot of food and drinks during the flight with a real smile and this in the whole cabine, even in economy. Mayby that's why their planes are always full!!!

[papysn]

. LOT on the same route to Warsaw then I prefer LOT with an excellent service, very good and clean airplanes, good seat pitch AND a lot of food and drinks during the flight with a real smile and this in the whole cabine, even in economy. Mayby that's why their planes are always full!!!

You've got it totally right Atlantis, that's the point...

But i also think it's too late for Brussels Airlines,now they have to struggle for survival.
They had taken the right direction with SN (CEO Vanderputten), their turn with Brussels airlines was dramatic and every concerned frontliner was totally aware of that (that was not the case of the managers, of course)!!!

Regards.

K.

[SN1203]

But i also think it's too late for Brussels Airlines,now they have to struggle for survival.
They had taken the right direction with SN (CEO Vanderputten), their turn with Brussels airlines was dramatic and every concerned frontliner was totally aware of that (that was not the case of the managers, of course)!!!

Everybody prefers a brand new aircraft and a very good service, but does it pay off for LOT? Last time I checked, they were virtually bankrupt.

Also due to bad managers I guess?

(disclaimer: this is no excuse to offer a lousy service, just to put things in perspective)