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At some point investors will be asked for yet more cash to update fleet and this will yet again have another negative impact of company values. Flybe have not yet proven a model of business that makes money it’s just a cash burn business that rewards directors for failure. Win win for those at the top.
Promise I'll shut up after this post, but the average age of the flybe fleet is 9.5 years. That however includes the E175s none of which is more than 6 years old. Of the 56 Q400s in service, 19 are more than 10 years old. The oldest was delivered in June 2003 ( source www.planespotters.net)
I know the difference. This is related to an ongoing debate where Sam assured us all without really knowing what he was saying that there would categorically be no updates before November, anyone who suggested there could be was accused of spreading false information and he had their posts removed.
I'm quite upbeat about todays events. It seems to me the new CFO has got a handle on the base costings of the organisation and is demanding change in the way maintenance in particular is carried out. If this reflects a new culture of "clean sheet of paper" approach budgeting rather than just amending budgets based on previous outturns, then it augurs well for the future.
Northam - just to clarify, Sam is right, the results are coming on 9th November. Today's announcement is required because the previously issued profit forecast or guidance is not going to be met. The Board are obliged to tell shareholders as soon as they are aware (and not to await the results) if there is a material difference to the forecast performance out turn.
"FLYB RE: Drifting SP 30 Aug '17 Your incorrect next update not due until November reason this is dropping again is total lack of confidence if the market believes in Flybe you would see an uplift not a further drifting in values. Time will tell if Flybe have a chance in market" But is it an UPDATE?
But you sold out so surely this is a change of your opinion.
Well I certainly haven't changed my opinion on the pathetic sacked.....you simply can't polish a t¥rd!
So you should change your opinion to SELL as you have done knowing this company has failed AGAIN with another profit warning.
It’s not results it’s a profit warning. As your aware they are totally different.
If the maintenance costs are attributable to a fleet which is growing older by the day and the unspecified costs prior to returning an aircraft at the end of its lease, I can only see this being an ongoing issue...and a costly one at that. So, for the time being, I'm taking my profit at 38.25 and sitting on the side-lines. I might well regret it, but it just goes to show the vagaries of investing in the airline business. Will be keeping a watchful eye though.
I thought there categorically was not going to be any results until November?
got to admit, this company just disapoints time after time. They find problem after problem,. How many more skeletons in the locker room. Whats next? Well at least they gave us an advanced profit warning.
The last statement says it all " Confident that we are still on a clear sustainable path to profitability in line with our stated plan." It could be a reovery from this point.
Accounting for maintenance costs is an art rather than a science, pretty subjective. Suspect combination of returning five or six aircraft in H1 plus an enhanced maintenance programme to improve reliability and a new CFO last week all played a part. Disappointing but not wrist slitting news. Rising yield and load factor is good news though. Look forward to the detail in a few weeks
Takeover target, with competition and some airline setup have expanded faster then they can manage it seems FLYB are focused and contained with IT and maintenance. BA already had a smack with IT problems and Ryan air with overbooking problems.This could be the start of recovery I like the idea to let the market know of the setback than nasty surprises...Game is on for takeover or well managed setup. IMO
The downside of focusing on a turboprop fleet. Planes with "elastic bands" are costlier to maintain than jets and therefore liable to cost overruns if you get a bad patch of reliability and our fleet us getting older too. But they are still forecasting a profit.
GaryDav, those IT costs going up? Well below the CIO, you dont have much experience on the leadership. The IT director, if the same one still was his first ever IT director role. IT costs going up, lets hope the CIO gets a grip on that cost and sorts out that IT layer of management.
u really couldn't make this sh*t up!!
-18%
aww garydav.
Why are you gloating? You've lost thousands...allegedly. I wouldn't be crowing about that...but then I'm not an excuse for an investor.
No mention about paying SH’s salary for the past twelve months as another excuse.
I didn't see this latest excuse coming....the IT one came as a surprise but this morning's excuse about aircraft maintenance is hilarious! surely the excuse book must be running out?? 'higher than expected' aircraft maintenance costs, that's a cracker, aircraft maintenance costs are surely one of the easiest costs to predict (and include a buffer to allow for worst case)....
More bad news for Flybe back down we go.