ATW Daily News

Transavia.com stays profitable despite Schiphol frustrations

Wednesday May 31, 2006

Transavia.com, celebrating its 40th birthday this year, achieved its 28th consecutive annual profit with a net result of €11.1 million ($14.1 million) for the financial year ended March 31. This compares to a net profit of €13.6 million in FY05, the 18.4% decline owing to a switch to EU-IFRS accounting standards. Revenues rose 15% to €597.1 million and operating costs increased 16% to €573.5 million. Cost per seat grew 6%, driven largely by fuel. Operating profit at the low-cost and charter subsidiary of Air France-KLM was €18.1 million. It carried 4.8 million passengers in the financial year, a 7% increase. FY06 was its first full year of operating again under one brand following the merger of Transavia Airlines and Basiq Air on Jan. 1, 2005 (ATWOnline, Dec. 16, 2004).

Transavia.com took the opportunity to criticize the fees at its Amsterdam Schiphol base, saying the airport "appears to pay little heed to criticism from the market in this regard. Because of the monopolistic situation in which the airport operates, we, like many others, feel that the regulators in particular should use their influence to bring about a long-term pricing policy which is acceptable to all parties." The airline and AMS have been at odds since the opening of the new low-cost Pier H on Nov. 1. CEO Onno van den Brink described Pier H as "unfit" for the carrier's fleet and bemoaned the 20% discount designed to bring competitors such as easyJet, Thomsonfly.com, bmibaby, Jet2.com, SkyEurope Airlines and Wizz Air to the new facility. "We're steaming," he told de Volkskrant noting that his request for a comparable discount has fallen on "deaf ears" despite Transavia.com's status as the second-largest operator at AMS. The newspaper said the carrier is considering a legal challenge against Schiphol Group.

by Cathy Buyck

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