newstodate.aero
Sep 06, 2012 (newstodate): August figures on Estonian Air's traffic tell of increasing volumes of passenger, flights operations and a growing load factor.
Still, the road ahead is full of challenges while the goal remains to return to profits in 2014 despite sustained losses in H1, 2012.
-We fly more frequencies with smaller aircraft, which stimulates both
volumes and revenue. The revenue per seat-kilometer is up significantly, and our cost per available seat-kilometer has shown a steady trend of decline. But unfortunately, the key challenge remains the fuel, says Tero Taskila, Estonian Air CEO.
-For an airline like Estonian Air the cost of fuel per seat is a challenge. So far, the fuel has eaten up all the benefits reaped from shaving the fixed costs.
-We are currently optimizing the flights to fill the planes better. We have also added a bit of "slack" to schedules, so that we don't have to increase fuel burn by flying faster to catch up the schedule.
-This is especially true with Embraer aircraft. They are more economical than the Bombardier if flown at their own economical speed, but pushing the throttle of Embraer E170 to fly CRJ speeds will have an impact on fuel burn.
-The logic response is thus gradually moving to bigger aircraft like the E190. We need these aircraft to optimize cost per seat in the markets where we have been successful building the volumes with local and transfer traffic. Smaller aircraft will them be moved to build new flows.
That way, we will remain competitive against new entrants who might be
attracted by our success in creating volumes on certain routes, says Mr Taskila.
Still, the road ahead is full of challenges while the goal remains to return to profits in 2014 despite sustained losses in H1, 2012.
-We fly more frequencies with smaller aircraft, which stimulates both
volumes and revenue. The revenue per seat-kilometer is up significantly, and our cost per available seat-kilometer has shown a steady trend of decline. But unfortunately, the key challenge remains the fuel, says Tero Taskila, Estonian Air CEO.
-For an airline like Estonian Air the cost of fuel per seat is a challenge. So far, the fuel has eaten up all the benefits reaped from shaving the fixed costs.
-We are currently optimizing the flights to fill the planes better. We have also added a bit of "slack" to schedules, so that we don't have to increase fuel burn by flying faster to catch up the schedule.
-This is especially true with Embraer aircraft. They are more economical than the Bombardier if flown at their own economical speed, but pushing the throttle of Embraer E170 to fly CRJ speeds will have an impact on fuel burn.
-The logic response is thus gradually moving to bigger aircraft like the E190. We need these aircraft to optimize cost per seat in the markets where we have been successful building the volumes with local and transfer traffic. Smaller aircraft will them be moved to build new flows.
That way, we will remain competitive against new entrants who might be
attracted by our success in creating volumes on certain routes, says Mr Taskila.