January 23, 2003 at 9:27 pm
I have just read on the news section of Justplanes.com, that KLM is considering to drop the low fare airline Buzz, due to poor results over the last year or so.
Heres the article:
KLM now plans to ground one Boeing 747-300 and a few regional aircraft from 01Feb03. The airline is also considering whether to give up a majority in low cost airline Buzz.
Can anyone give any more info on this?
By: wysiwyg - 25th January 2003 at 09:28
RE: KLM and BUZZ and Air Lib Express.
I think that despite a crap brand once they get their independence from the outfit that murdered the great AirUK (which was not only a very successful scheduled carrier but also had a charter offshoot, now part of Air2000) and decent operating equipment, Buzz will be a very strong outfit. They are the largest service provider between the UK and France and are specialists at this.
By: Fokker - 25th January 2003 at 08:58
RE: KLM and BUZZ and Air Lib Express.
According to KLM’s 3rd Quarter results the loadfactor of Buzz was under expectations for the months Oct-Dec due higher competition on mainly the German routes with new carriers.
I think it is important for Buzz to keep on investing in growth as they do not want to loose their 3rd position as European low cost carrier. Having a look at what is going on in the airline industry and the 3rd quarter loss for KLM I can imagine KLM is looking for a partner to help financing that growth. Hell would brake loose within KLM in the Netherlands when there will be only “(cost)cuts” in the mainstream operation and investment in Buzz which is operating outside the Netherlands.
By: mongu - 25th January 2003 at 01:08
RE: KLM and BUZZ and Air Lib Express.
That’s like buying a new kitchen from MFI before you sell your house!
By: EGNM - 25th January 2003 at 00:19
RE: KLM and BUZZ and Air Lib Express.
yea 6 new B733s are entering the fleet!
By: mongu - 24th January 2003 at 20:00
RE: KLM and BUZZ and Air Lib Express.
Preston, KLMuk continues to operate the AMS feeder flights, but that is all it is good for. The Buzz part of things is surplus to requirements. Talk of extra investment is just a way of getting more cash when they offload Buzz!
By: EGNM - 24th January 2003 at 10:03
RE: KLM and BUZZ and Air Lib Express.
Mongu KLM originally can accross Buzz through its partnership with the Former Air UK, later becoming KLM UK after a majority buyout. After dropping many regional routes it became standardised that the F100 and FK50 would operate the UK-AMS routes with the BAe 146-300 becoming redundant – hence the formation of Buzz at the time!
By: wysiwyg - 24th January 2003 at 08:11
RE: KLM and BUZZ and Air Lib Express.
I thought KLM had been looking at offloading Buzz for ages as it didn’t fit their business plan. I don’t think it would disappear, just continue independently.
By: Fokker - 24th January 2003 at 07:37
KLM and BUZZ and Air Lib Express.
According Dutch newspapers KLM is looking for a partner to help pay for Buzz expansion plans. A name popped up recently of someone who might be interested.
There are talks Erik de Vlieger, a Dutch businessman who made his money in first sawing machines and since years real estate would be interested. Mr de Vlieger’s IMCA group owns already Tulip Air, Fly Metropolis, Dynamic Airlines, 60% of KLM Exel and since the end of last year 50% of Air Lib the ailing second French airline.
Air Lib, the new name of Air Liberte and AOM after the demise of Swissair which owned those airlines, is in negotiation with French governement about restructuring plans.
According to the newspapers Erik de Vlieger has also agreed on a first purchasing right of 60 Fokker 100’s placed in the desert by American Airlines. It is said that he even has a deal already with Rolls Royce to overhaul the engines and is negotiating with Dutch company STORK who took over Fokker Maintenance after their demise.
By: mongu - 24th January 2003 at 00:46
RE: KLM and BUZZ.
Well, there is no good reason why KLM would want to own a UK-based low cost airline to be honest. It just ties up time and resources.
The KLM guys think that those resources and that time, would be more profitably used if it were devoted to the mainstream KLM operation.
You’re right folks, they just did the same as BA did with Go…learn lots of things about how to operate more cheaply, and make a fair bit of money in the process. Now it’s time to apply all that to the real KLM. Tricks like, being rude and refusing to check bags in for connecting flights…..
By: EGNM - 24th January 2003 at 00:35
RE: KLM and BUZZ.
we’ll have to see – just hope that they dont end up in a buy out by another loco carrier and further monopolise the UK Market!
By: dan777 - 23rd January 2003 at 23:19
RE: KLM and BUZZ.
Oh My God!!!! I thought Buzz were doing so well. I’ve flown with them 4 times and they are the BEST low-cost airline. All there flights were full when I went with them and they fly to really good and alternative destinations e.g. Almeria, Jerez, Dijon etc. They have excellent customer service.
Maybe KLM are just thinking of selling Buzz like BA sold go just to concentrate on high business class revenue???
Regards
dan777
By: T5 - 23rd January 2003 at 22:31
RE: KLM and BUZZ.
What a waste! They have just started up a whole host of new destinations from Bournemouth. Surely the performance of Buzz isn’t having such a bad effect on the huge KLM!
Give it a chance people @ KLM!