Possible Plane Order
01-23-2019 | 07:43 AM
#121
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Joined: Feb 2007
Posts: 1,451
Likes: 24
From: Airplanes
This is just my personal opinion. RR email stating possible unplanned growth, aircraft orders in line th F9, almost matching contracts. Route structures very similar to ours, some over lap but not much. The future growth of both airlines is pretty impressive. So, my guess is Delta will buy us😁.
UA/AA/DL have similar contracts but they aren't about the merge. F9 is NK's direct competitor. They couldn't have signed a more expensive contract and still compete with us as the cost structures have to be the same.
NK seems to be expanding like a regular airline while F9 to me appears to be expanding Allegiant style with 50 new cities served twice a week.
I don't have any facts saying we won't merge and just offering counters to your interpretation. Something has to happen this year is we're going to keep growing.
01-23-2019 | 07:45 AM
#122
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Joined: Feb 2014
Posts: 364
Likes: 3
From: CA
The RR email could be delivery slots that have opened up or more used frames.
UA/AA/DL have similar contracts but they aren't about the merge. F9 is NK's direct competitor. They couldn't have signed a more expensive contract and still compete with us as the cost structures have to be the same.
NK seems to be expanding like a regular airline while F9 to me appears to be expanding Allegiant style with 50 new cities served twice a week.
I don't have any facts saying we won't merge and just offering counters to your interpretation. Something has to happen this year is we're going to keep growing.
UA/AA/DL have similar contracts but they aren't about the merge. F9 is NK's direct competitor. They couldn't have signed a more expensive contract and still compete with us as the cost structures have to be the same.
NK seems to be expanding like a regular airline while F9 to me appears to be expanding Allegiant style with 50 new cities served twice a week.
I don't have any facts saying we won't merge and just offering counters to your interpretation. Something has to happen this year is we're going to keep growing.
01-23-2019 | 08:36 AM
#123
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Joined: Apr 2016
Posts: 778
Likes: 16
From: A320 CA
I laugh every time I see that stock photo of the yellow plane with the silver nose! https://www.bloomberg.com/news/artic...g-smaller-jets
01-23-2019 | 09:48 AM
#124
Gets Weekends Off
Joined: Feb 2006
Posts: 6,248
Likes: 0
From: 767A (Ret)
I laugh every time I see that stock photo of the yellow plane with the silver nose! https://www.bloomberg.com/news/artic...g-smaller-jets
That was a tribute to Tim Strawn.
01-23-2019 | 10:08 AM
#125
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Joined: Oct 2018
Posts: 78
Likes: 0
From: A320 CA
01-23-2019 | 01:01 PM
#126
Banned
Joined: Dec 2014
Posts: 718
Likes: 9
03-02-2019 | 07:30 AM
#128
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Joined: Mar 2018
Posts: 47
Likes: 0
Since its launch in 2012, WOW Air has been a disruptive force in the trans-Atlantic airline market. The Icelandic ultra-low-cost carrier has become famous for its brightly painted purple planes, no-frills in-flight products, and insanely low prices. In some cases, WOW has been known to offer one-way flights between the US and Europe for as little of $49.
Unfortunately, WOW Air suffered through a difficult 2018 that included a failed merger with crosstown rival Icelandair followed by the layoff of 111 employees and the reduction of its fleet from 20 to 11 planes.
During the first nine months of 2018, the airline saw revenues surge 31% to $501 million, but losses more than doubled to $33.6 million from $13.5 million during the same period in 2017.
WOW Air founder and CEO Skúli Mogensen told Business Insider that much of the airline's problems stem of the addition of wide-body Airbus A330-300 jetliners to its fleet.
"One of the mistakes that I made, that WOW made in the last 18 months was that we were moving away from the low-cost model," Mogensen said in the interview. "Most significantly we made our fleet structure unnecessarily complex with the addition of the widebody A330 to our fleet."
A WOW Air Airbus A330-300.
WOW
WOW Air launched with a fleet made up of narrow-body Airbus A320-family jets with 174 to 220 seats. However, the airline acquired three Airbus A330-300 jets with around 340 seats in late 2016 for flights to Asia and the West Coast of the United States.
Read more: The amazing story of how the Airbus A320 became the Boeing 737's greatest rival.
"One of the core essences of the successful low-cost model is to ensure that you maintain a simple and coherent fleet structure because it will very quickly complicate the operations and therefore the costs if you have multiple fleet types," Mogensen said.
The presence of the A330s not only increased the airlines operating costs, but it also put pressure on WOW to fill the extra 120 or so seats per flight. This hurt the airline's yields, Mogensen said.
The A330s are currently in the process of being phased out of service with the airline returning to a single aircraft type fleet strategy built around the A320-family.
A WOW Air Airbus A321neo.
Airbus
Unfortunately, Mogensen confirmed that many long-haul destinations served exclusively by the A330, such as the West Coast of the US, will also be cut from WOW 's network.
The WOW Air boss also said that his company strayed from the no-frills, low-cost business model that made it famous and behaved more like a traditional legacy airline.
"The second mistake we made and was in part because of the A330 was that we started behaving like a legacy carrier in the sense that we added a premium cabin," he said. "And again complicating our message, complicating our service delivery, complicating the marketing, and we are going back to our roots as a pure low-cost carrier."
From the failed merger with Icelandair and the layoffs, Mogensen is hopeful that the difficult time will result in a stronger, more efficient and streamlined company.
WOW Air
The airline is in discussions regarding investment opportunities with the private-equity firm Indigo Partners, which owns the low-cost carriers Frontier Airlines and JetSmart.
According to Mogensen, WOW Air expects to be profitable again in the near future and will once again be in expansion mode in 2020. This time, as a single-fleet, low-cost operator.
"We were profitable and successful as a single fleet low-cost operator up until 2017," he said. "So really it's 2018 that was an abnormally bad year, so we're confident that the original strategy worked so we're going back to that."
Unfortunately, WOW Air suffered through a difficult 2018 that included a failed merger with crosstown rival Icelandair followed by the layoff of 111 employees and the reduction of its fleet from 20 to 11 planes.
During the first nine months of 2018, the airline saw revenues surge 31% to $501 million, but losses more than doubled to $33.6 million from $13.5 million during the same period in 2017.
WOW Air founder and CEO Skúli Mogensen told Business Insider that much of the airline's problems stem of the addition of wide-body Airbus A330-300 jetliners to its fleet.
"One of the mistakes that I made, that WOW made in the last 18 months was that we were moving away from the low-cost model," Mogensen said in the interview. "Most significantly we made our fleet structure unnecessarily complex with the addition of the widebody A330 to our fleet."
A WOW Air Airbus A330-300.
WOW
WOW Air launched with a fleet made up of narrow-body Airbus A320-family jets with 174 to 220 seats. However, the airline acquired three Airbus A330-300 jets with around 340 seats in late 2016 for flights to Asia and the West Coast of the United States.
Read more: The amazing story of how the Airbus A320 became the Boeing 737's greatest rival.
"One of the core essences of the successful low-cost model is to ensure that you maintain a simple and coherent fleet structure because it will very quickly complicate the operations and therefore the costs if you have multiple fleet types," Mogensen said.
The presence of the A330s not only increased the airlines operating costs, but it also put pressure on WOW to fill the extra 120 or so seats per flight. This hurt the airline's yields, Mogensen said.
The A330s are currently in the process of being phased out of service with the airline returning to a single aircraft type fleet strategy built around the A320-family.
A WOW Air Airbus A321neo.
Airbus
Unfortunately, Mogensen confirmed that many long-haul destinations served exclusively by the A330, such as the West Coast of the US, will also be cut from WOW 's network.
The WOW Air boss also said that his company strayed from the no-frills, low-cost business model that made it famous and behaved more like a traditional legacy airline.
"The second mistake we made and was in part because of the A330 was that we started behaving like a legacy carrier in the sense that we added a premium cabin," he said. "And again complicating our message, complicating our service delivery, complicating the marketing, and we are going back to our roots as a pure low-cost carrier."
From the failed merger with Icelandair and the layoffs, Mogensen is hopeful that the difficult time will result in a stronger, more efficient and streamlined company.
WOW Air
The airline is in discussions regarding investment opportunities with the private-equity firm Indigo Partners, which owns the low-cost carriers Frontier Airlines and JetSmart.
According to Mogensen, WOW Air expects to be profitable again in the near future and will once again be in expansion mode in 2020. This time, as a single-fleet, low-cost operator.
"We were profitable and successful as a single fleet low-cost operator up until 2017," he said. "So really it's 2018 that was an abnormally bad year, so we're confident that the original strategy worked so we're going back to that."
03-13-2019 | 12:09 PM
#130
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Joined: Jun 2015
Posts: 1,866
Likes: 0
From: Left
The current Airbus A320/21 NEO order backlog is huge. Order now and you will wait several years unless you decide to go with a more expensive lessor. Plus, with the unfortunate MAX issues, we may see more defections to the Airbus NEO or airlines holding on to their older A320s longer....
A big CS300/A220 order would make sense while their order backlog is manageable. JetBlue did their research and Spirit should follow (and negotiate a similar deal). It’s time to connect more dots on the map with more fuel efficient airplanes like the CS300....
A big CS300/A220 order would make sense while their order backlog is manageable. JetBlue did their research and Spirit should follow (and negotiate a similar deal). It’s time to connect more dots on the map with more fuel efficient airplanes like the CS300....
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