9 JULY 2018

YOUR WORDS


Readers are invited to add their comments to any story. Click on the article to see and add.

BTN DISTRIBUTION

BTN also goes out by email every Sunday night at midnight (UK time). To view this edition click here.

Index

Email this Page
Bookmark

The Business Travel News
PO Box 758
Edgware HA8 4QF
United Kingdom
+44 (0)20 8952 8383
info@btnews.co.uk
© 2018 Business Travel News Ltd.

Article from BTNews 9 JULY 2018

Loganair in Flybe row

A pre-tax loss of £9m for fiscal 2017-18 after 17 consecutive years of profit was reported by Loganair last week.

The company said the end of its franchise agreement with Flybe had been a “major factor”.

Loganair had warned earlier of an impending loss since the Flybe decision would result in one-off costs including rebranding and creating a new reservations system, booking website and contact centre at Glasgow Airport.

Managing director Jonathan Hinkles said these totalled £2.98m. Delayed code-sharing agreements cost another £2m while competing with Flybe was estimated to have cost £6.8m. Prices on competitive routes “fell to unsustainable levels”.

Chairman David Harrison said: “The fact we forecast last year that we would be loss-making in 2017/18 makes it no less painful. The extent of the loss is a direct result of competition on six of our eight largest routes.

“From the outset, we maintained the markets on these routes were simply not big enough to sustain the level of seat capacity being introduced – this indeed proved to be the case."

Looking ahead, however, Loganair has signed three new interline agreements with more expected and late last month said it was planning to expand to Europe next year with a Glasgow – Brussels route.

www.loganair.co.uk

www.flybe.com

Index/Home page
 

OUR READERS FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum


No one has commented yet, why don't you start the ball rolling?


Add your comment

First Name
Surname
Email Address
Company (Not obligatory)
Country/City
Comment
- You must be a registered subscriber using the email address entered to submit a comment, or you will be sent a confirmation email before your comment will appear.
- Your comment will be checked before appearing, which may take several working hours.


www.btnews.co.uk