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SkyEurope axes Budapest and Krakow to focus on key bases
Graham Dunn, London (03Sep07, 10:16 GMT, 314 words)
Central European budget carrier SkyEurope is to close its bases at the Hungarian capital Budapest and Polish city Krakow as part of move to bolster profitability by focusing on its Bratislava, Vienna and Prague operations.
From 28 October SkyEurope will cease to operate bases in both Budapest and Krakow, in a move it says is designed to reduce complexity and costs. It currently serves 19 destinations from Budapest and 22 from Krakow. It will though continue to operate flights linking Krakow to Vienna.
Instead the carrier is to reallocate this capacity to its Prague and Vienna bases, the latter of which it launched in March this year. It forms part of a strategy to focus on operations from its Bratislava, Prague and Vienna bases.
SkyEurope Airlines CEO Jason Bitter – who took the helm at the start of June in succession to Christian Mandl, who remains head of parent company SkyEurope Holding – says: “We have decided after much research that the way to achieve long-term success is to build our operation around Slovakia, Czech Republic and Vienna.
“These markets have a good mix of both leisure and business traffic and are growing rapidly with very healthy national economies and they have less pronounced seasonality than Krakow and Budapest.”
It comes as the carrier has just announced a cut in operating and net losses for the third quarter. Operating losses were reduced to €5.2 million ($7.1 million) from €14.4 million for the three months ending 30 June 2007, while net losses were cut from €16.5 million to €5.1 million for the quarter. Revenue growth of nearly €14 million to €66.6 million in the third quarter far outstripped the €3.5 million extra costs for the period, enabling SkyEurope to post a positive EBITDAR of €3.2 million.
SkyEurope is continuing to forecast a full-year positive EBITDAR figure and expects to post an operating profit in the last quarter.
Source: Air Transport Intelligence news
http://www2.skyeurope.com/EN/Documents/Q3_2007_Presentation_Final.pdf
Graham Dunn, London (03Sep07, 10:16 GMT, 314 words)
Central European budget carrier SkyEurope is to close its bases at the Hungarian capital Budapest and Polish city Krakow as part of move to bolster profitability by focusing on its Bratislava, Vienna and Prague operations.
From 28 October SkyEurope will cease to operate bases in both Budapest and Krakow, in a move it says is designed to reduce complexity and costs. It currently serves 19 destinations from Budapest and 22 from Krakow. It will though continue to operate flights linking Krakow to Vienna.
Instead the carrier is to reallocate this capacity to its Prague and Vienna bases, the latter of which it launched in March this year. It forms part of a strategy to focus on operations from its Bratislava, Prague and Vienna bases.
SkyEurope Airlines CEO Jason Bitter – who took the helm at the start of June in succession to Christian Mandl, who remains head of parent company SkyEurope Holding – says: “We have decided after much research that the way to achieve long-term success is to build our operation around Slovakia, Czech Republic and Vienna.
“These markets have a good mix of both leisure and business traffic and are growing rapidly with very healthy national economies and they have less pronounced seasonality than Krakow and Budapest.”
It comes as the carrier has just announced a cut in operating and net losses for the third quarter. Operating losses were reduced to €5.2 million ($7.1 million) from €14.4 million for the three months ending 30 June 2007, while net losses were cut from €16.5 million to €5.1 million for the quarter. Revenue growth of nearly €14 million to €66.6 million in the third quarter far outstripped the €3.5 million extra costs for the period, enabling SkyEurope to post a positive EBITDAR of €3.2 million.
SkyEurope is continuing to forecast a full-year positive EBITDAR figure and expects to post an operating profit in the last quarter.
Source: Air Transport Intelligence news
http://www2.skyeurope.com/EN/Documents/Q3_2007_Presentation_Final.pdf
