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With BA cabin crew poised to go on strike just in time for Christmas, Scotland's largest airline, Flyglobespan, has been grounded after its parent company, Globespan, was placed under administration. Up to 5000 passengers may be affected, and the company's 600 employees are now out of a job.
Ryanair and EasyJet are offering rescue fares to stranded travelers.
WOW! it is going to be a bad holiday season for British travelers. Perhaps if people would stop expecting to go to Katmandu for 170 each way.............. Just a thought.
Marketing 101...people don't expect it or demand it...the airlines offer it and entice customers with loss leaders like this. Companies like Globespan then try to make a profit by adding on hotels, cars, and other packages. Alligent is a prime example, however they make money. Globespan has been in trouble for a good two years now. They were a nightmare when they served JFK and often times their flights were delayed because Port and the IAT would hold the plane until they paid their useage fees.Quote:
Originally Posted by hiss srq
That is a small part as to why G4 is so profitable. They use a similiar model to WN by using one aircraft with very low operating costs, fly to small markets with no competition and always fly the lucrative seasonal routes in which planes are packed.Quote:
then try to make a profit by adding on hotels, cars, and other packages. Alligent is a prime example, however they make money.
Yes and yes. Don't they have one "down" day out of the week with only maintenance and no flying? They've got a winning formula. Have to wonder what they'll replace the MD-80s with the time comes though. I guess used 737s....Quote:
Originally Posted by NIKV69
Tom
My goodness, Europse has been hit hard by the charter airlines going out of business, always sad to see anybody out of work for the holidaysQuote:
Originally Posted by GothamSpotter
G4 doesn't currently have plans to replace the MDs, in fact they've recently took more on. A past interview with their CEO he stated even with the higher fuel costs its cheaper for them to aquire the plane second or third hand then to pay off a new plane.Quote:
Originally Posted by Tom_Turner
Oh yea, they are going to fly those mad dogs till the wheels come off. What a money saver. Who cares if it takes forever to get airborne?Quote:
G4 doesn't currently have plans to replace the MDs, in fact they've recently took more on. A past interview with their CEO he stated even with the higher fuel costs its cheaper for them to aquire the plane second or third hand then to pay off a new plane.
Seems Flyglobespan is owed around $70 million(!) by its credit card processor, a company called EClear. EClear has refused to comment to explain where the money is, but finally agreed to talk to administrators after Scotland's finance secretary publicly lambasted them yesterday. EClear is also four months late in filing its most recent annual report.
http://www.tnooz.com/2009/12/19/news/fl ... istrators/