Air Seychelles reported (18-Mar-2013) net profit of USD1 million in FY2012. The airline reported significant synergies and cost savings from its equity partnership with Etihad Airways. Air Seychelles chairman Joel Morgan said, "The choice of Etihad Airways as a strategic partner has been the right one. Working with our new partner, we have had to make some hard decisions to turn the airline around. We are now seeing the successful results of our strategy...I am confident we have now laid the ground work for sustainable profitability." Etihad Airways president and CEO James Hogan said, "This performance validates the strength of our equity alliance proposition in which closer committed commercial collaboration drives revenue growth, and the integration and consolidation of key functions, achieves economies of scale and cost savings. It is also testament to the hard work and willingness of the Air Seychelles team to embrace change and make the tough decisions required in reshaping their business." Air Seychelles reported a total of 247,750 passengers for the year, during which it commenced 19 codeshare agreements, expanded its network to Abu Dhabi and received its first two A330-200 aircraft. The airline plans to commence service to Hong Kong from 24-Mar-2013 and increase frequency to Abu Dhabi, Johannesburg and Mauritius. [more - original PR - Air Seychelles] [more - original PR - Etihad Airways]
Air Seychelles reports USD1m profit in 2012
You may also be interested in the following articles...
LOT Polish Airlines: now restructured, and long haul focus is on 2020 growth. Partnerships critical
On 8-Sep-2016 LOT Polish Airlines announced its "2020 profitable growth strategy". This involves a goal to achieve "sustainable viability", after a restructuring programme which returned LOT to operating profit in 2014 after six loss-making years. Its privatisation may even be back on the agenda.
LOT currently ranks behind LCCs Ryanair and Wizz Air by share of traffic in Poland, which offers superior traffic growth potential versus Europe as a whole. The airline aims to increase passenger numbers from 4.3 million in 2015 to 10 million in 2020, growing its fleet from 43 to 70 aircraft. LOT's expansion will focus on long haul, particularly North America and Asia, where it currently has only five routes and where competition is considerably lower than on short/medium haul. Initial plans include the launch of Warsaw-Seoul this winter and a return to Warsaw-New York Newark next summer.
According to data from LOT, its restructuring has left it with a fairly efficient cost base by legacy airline standards and this will be important in competing with LCCs (but there is still a cost gap with LCCs). LOT's growth will focus on long haul but will need short-haul European feed – and partnerships. Although LOT no longer appears to be considering leaving the Star Alliance, it remains excluded from American and Asian JVs. Further, those JVs preclude members from working with LOT. Partnership growth will be as critical as it will be challenging.
Airberlin makes network cuts, refocusses on North America long haul and new premium product
Despite low fuel prices that have carried the global airline industry to record margins, airberlin's 2Q2016 losses have widened. This was its fifth successive quarter of unit cost growth outpacing unit revenue growth (they both fell, but unit revenue fell faster). Airberlin improved its cost structure, but CEO Stefan Pichler said that 2Q "was more challenging than expected on volumes and yield". It now seems likely that 2016 will be yet another year of red ink for airberlin, which is 30% owned by Etihad.
Airberlin's ongoing restructuring continues to involve capacity and headcount cuts to improve cost efficiency. In addition, airberlin is seeking cost synergies by coordinating some support functions with Etihad Airways Partners airlines.
Still predominantly a short/medium haul operator, airberlin is expanding its long haul network with new routes in the US and the Caribbean. This long haul expansion, accompanied by the launch of a short/medium haul premium product, attempts to position airberlin more squarely as a full service network airline. This is a further move away from its LCC past, just as LCCs are encroaching on long haul in addition to short haul.