Herman De Wulf/BRUSSELS
Belgian flag carrier Sabena attributes its first net profit in 40 years to sustained growth in Europe, with the airline's low exposure in Asia shielding it from the full impact of the economic downturn there.
The airline made a net profit of BFr703 million ($20 million) last year, its first since 1958, on a turnover of BFr86,836 million, 21% up on the previous year.
Sabena is 49.5% owned by Swissair. Its recovery follows a major internal restructuring and the development of a hub-and-spoke operation based in Brussels. This, combined with a five-wave system of daily departures, has led to massive growth in passenger numbers, with 8.74 million people carried last year - 27% more than in 1997 and double the figure of four years ago.
Sabena remains essentially an intra-European carrier, with 83% of passengers travelling within Europe. This factor has protected it from the worst ravages of Asia's economic storm.
The airline says it expects to see growth continue this year - albeit "at a slower pace" - with more than 10 million passengers carried.
Sabena's overall load factor was 67.5% last year, with its intra-European figure up 4.5 points to 63% and the long-haul figure falling to 70.9% from 72.2%, partly as a result of larger Airbus A330/A340s and Boeing MD-11s entering the fleet. Long-haul business increased by 47% last year, and accounts for 17% of passengers. The airline is also upgrading its short-haul fleet with the delivery of an A321. The aircraft is the first of up to 34 A320 family aircraft ordered in March 1998. The A320 models will replace the airline's Boeing 737s on its European network.
Sabena, meanwhile, has confirmed that its interest in Uganda Airlines as a potential investment vehicle hinges on whether the African carrier has traffic rights to operate on certain international routes. The airline's executive vice-president and secretary general, Patrick du Bois, says it is waiting for Kampala to clarify the situation.
"As long as the Ugandan Government has not replied, there can be no progress in the talks," he says. "And should they reply that the airline is not in possession of traffic rights, then Sabena will not be interested in the airline at all."
A Ugandan parliamentary committee says the traffic rights question is a non-issue, since the routes - acquired by Kampala-based Alliance Air - remain the "property" of government and are subject to bilateral agreements with other countries.
Final bids for a 49% stake in Uganda Airlines are due to be submitted by 23 April, with the sale likely to be completed by 30 April. Further delays could cost $1 million a month in funding for the loss-making carrier.
Source: Flight International
