Herman De Wulf/BRUSSELS
HAVINGMADE its first profit since it launched three years ago, City Bird has revealed a revamped cargo strategy and plans to set up an all-business class airline operation for long-range services.
The Brussels-based low-cost airline operates long-haul scheduled, charter and wet-lease services with three Boeing MD-11s and two Boeing 767-300ERs. It has just introduced three Boeing 737-400s on European charters, while its freight arm operates two Airbus A300-600 freighters.
The major change to City Bird's cargo strategy is the shelving of plans to introduce two Boeing 747-400 freighters this year. According to chief executive Victor Hasson, the airline is instead doubling its A300-600F fleet. City Bird's first two Airbus A300s, delivered last year, are operated on daily cargo flights between Brussels and Tel Aviv, and will be joined by the two additional examples this year.
Although City Bird's 747 order was never formally announced, the airline had planned to introduce the 113t payload freighter this quarter, and had been negotiating a deal with the manufacturer and leasing companies (Flight International, 3-9 March, 1999).
With the 747 freighter plans on hold, Hasson is studying taking the airline into a new niche in the passenger market. This could see the carrier introducing scheduled business class-only services to the USA using a 40-seat extended-range version of the Boeing Next Generation 737. Hasson calculates that flights would be profitable, even with a 50% load factor.
Meanwhile, City Bird is expanding its short-haul charter operation, with plans to increase the 737 fleet to eight aircraft. A fourth 737 will be delivered in May, and the airline has four 737-800s on lease order from Bouillioun.
City Bird posted a BFr153million ($3.6 million) profit last year, compared to a BFr492 million loss in 1998. Profitability was achieved through cost-cutting, while turnover increased by 44% to BFr6.2 billion. Unprofitable services to Los Angeles, San Francisco and Mexico were dropped last year, leaving Brussels to Miami and Orlando as the airline's only scheduled services.
Source: Flight International
