ATW Daily News

Brussels Airlines unveiled

Wednesday November 8, 2006

SN Brussels Airlines and Virgin Express announced that Brussels Airlines will be the name of the merged company, a "new-generation" carrier that will meet "the real needs of...both business and low-cost travelers: Flexibility, service and timesaving for the former, and the lowest fare guarantee for the latter."

The hybrid, born out of full-service SN Brussels--which itself was created out of the remains of Sabena--and low-fare carrier Virgin Express (ATWOnline, April 3), will continue to offer a two-class product on its long-haul network and to three medium-haul destinations (Helsinki, Moscow Domodedovo and Tel Aviv) but will move to a single-class short-haul configuration from March 25, the date of its official launch.

Its "new generation" economy product will encompass b.flex and b.light. The b, which is also the airline's new logo, symbolizes both Brussels and Belgium. B.flex comprises tickets without charge for change of date or destination, a 100% refund for pre-departure cancellation and rebooking onto an earlier flight at no extra cost. The ticket comes with priority boarding, seating in the front of the plane, complimentary newspapers, meals and fast-track through security, although initially only at Brussels Airport. The carrier claims its b.flex fares will be 50% cheaper than its competitors' business class fares. All tickets will be sold one-way.

"We are the dominant player at Brussels Airport and we want to become even more dominant," outgoing CEO Neil Burrows told ATWOnline. The constituent carriers currently command a 44% share of the passenger throughput at BRU. "We will strengthen our niche position in Africa and we are still on course to expand our North America network," Burrows said. He added that the airline is seeking to add a fourth A330 to its long-haul operation and is in negotiations with "potential partners in Africa," specifically in Rwanda and Cameroon.

"In Europe we will be in the position to compete more effectively with the growing number of LCCs. We will offer three times as many low-fare destinations out of Brussels than before," he noted. Brussels Airlines will operate about 5% more seats at the start of the next summer schedule compared to the year-earlier period.

Chairman Etienne Davignon said he is targeting a 5% operating margin for Brussels Airlines in 2008, although he admitted SN "never made money" on its short-haul operations. The new carrier will be an IATA member and keep the SN code of SN Brussels.

by Cathy Buyck

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