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restructuring

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Primera Air fails to secure long term financing and shuts down, but was its collapse inevitable? Its product positioning was vague, LCC or Full Service, point to point with no feed, small 7 aircraft fleet (5 x A321neo and 2 x B737-800, plus 2 x A321LR and 18 x B737-9 on order) of its own, late aircraft deliveries, unexpected maintenance and then too many ACMI leases and starting too many long haul routes at once sealed its inevitability?

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/         Primera Air blames ‘several unforeseen misfortunate events’ for its collapse, but did it take a risk too many in entering the competitive trans-Atlantic market?   October 3, 2018 – CAPA The European carrier Primera Air surprised everybody when it burst into the trans-Atlantic market earlier this year. After over … Continue reading

BOC Aviation says 301 airline failures this decade and rising, 2 per month and 90% were <20 aircraft operators that did not reach "critical mass"​

https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     October 25, 2018     Tomas’s Comment:     These comments from BOC Aviation’s MD & CEO Robert Martin, confirm what we are seeing, and that is shake out of small weak carriers just cannot compete effectively with small fleets, usually high debts and little equity or ability to raise more cash. … Continue reading

For decades LIAT has struggled under heavy airport fees, taxes, poor management and politicians with no “balls” to make tough decisions. The airline has a monopoly on most of its network, but still burns cash year after year, and yet politicians just talk and talk about what is bad and what is good but nothing ever changes. The losers are the good people of the Eastern Caribbean, who are “stuck” with high fares and airport fees, unreliable air service and they have chosen NOT to fly, with LIAT passenger count down to around 800,000 yet 10 years ago 2 million were carried when LIAT had competition from Caribbean Star. That shows that the demand is there but supply is too expensive, unreliable and mistrusted, its time for LIAT to Swim of Sink and be ready to open the EC to competition, state aid is not working.

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/   PM Gonsalves Says There Are Weaknesses And Limitations With LIAT? Off Course, there are, it is why its burning taxpayers’ money for 2 generations!   October 23, 2018 – Antigua News Room     Tomas’s Comment:   For decades LIAT has struggled under heavy airport fees, taxes, poor management and a poor Board … Continue reading

Start-up Vietnamese airline, Bamboo Airways, has committed to purchasing 20 787-9 Dreamliners and 24 x Airbus A321neo’s back in March. The airline will be up against state owned and soon to be 49% privatized Vietnam Airlines with 83 aircraft and 28 on order, LCC VietJet Air with 55 aircraft and 179 on order and lastly Jetstar Pacific with 19 aircraft, if all airlines take their orders, Vietnam should have 4 airlines operating a total of 408 commercial jet airliners by +/- 2024, that is going to be a highly competitive market for sure.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Airline Economics Online- June 27, 2018       Tomas’s Comment:   Bamboo Airways, is a startup airline by a Vietnamese construction company, FLC Group. It will start in late 2019? and will serve destinations where FLC Group has heavily invested in tourism infrastructure, as well as other secondary domestic routes.   … Continue reading

SUMMARY: NO surprise! Fastjet of South Africa is on the brink of failure, without a cash immediate injection, as cash on hand is down to $US 3.3m, this airline’s LCC business model with A319’s was broken for years, then they abandoned the model for regional jet flying with 3 x ERJ-145’s and 2 x E190’s. With operations in Mozambique (under Solenta Aviation Mozambique), South Africa (“branding licence”? with Federal Airlines), Tanzania (Fastjet Tanzania 49% owned) and in Zimbabwe (FastJet Zimbabwe 49% owned) and still cannot make money, share price fell 70% today, and yet still the airline is valued at $US 29m seriously?

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Fastjet warns it cannot continue without equity raising Airline Economics Daily – June 27, 2018 Tomas’s Comment: This is a sad story, the LCC model was a disaster, in 2016 it lost $US 48m on $US 68.5m in revenue? a -70% loss margin? what kind of business is that? They found a … Continue reading

Air Belgium finally flies its first flight, leases out one of its two A340’s to AF, and now wants to fly to the US, yet no GDS and operating out of Charleroi Airport? oh boy!

You can read more of my Articles and Posts on LinkedIN at:         https://www.linkedin.com/in/tomas-chlumecky-3200a021/    Air Belgium Now Wants To Start Flying To The US JUNE 20, 2018 – BY LUCKY – One Mile at a Time   Tomas’ Comment:   This is an “odd” airline to keep an eye on for sure, … Continue reading