VLM sold to Air France/KLM group
Posted: 25 Dec 2007, 02:12Bad news LCY flyers, our favourite LCY airline, VLM is being sold:
http://www.flyvlm.com/emc.asp?pageId=1184
Worst of all, it's being sold to AF-KLM, which will mean an elimination of competition on routes such as LCY-AMS, which did have significantly more affordable fares since VLM started flying the route.
I remember that before VLM started flying LCY-AMS, KLM were wanting over 300 for a round trip on that route, and all the midday flights were scrapped - KLM cherry-picking the business traffic only on that route.
It makes AF-KLM seriously dominant at LCY, with the AF/CityJet flights, the recent purchase of ScotAirways by CityJet, existing KLM schedule and now adding VLM. I wouldn't at all be surprised if the combined operation is forced to release slots, if they don't give them up voluntarily anyway as a result of merging services.
I guess the only thing that can be hoped for is that VLM is run as a 'hands off' operation by the group, in much the way CityJet is. Who knows, maybe the long term plan is to transfer all the KLM Cityhopper operations to the VLM AOC, so that KLM is concerned with operating 'mainline' only? (However, the reverse is more likely to happen... Antwerp is swallowed up by Amsterdam.)
My primary concern is that this will lead to monopolisation of LCY by the AF/KLM group and significant increases in fares - effectivly AF/KLM bought VLM to solely kill off a competitor.
The other threat is loss of the individuality and distinctiveness of the VLM onboard service - drinks served in real glass and china, Leonidas chocolates, that sort of thing. Replaced by AF/KLM homogenised 'cardboard' service.
Of course, the real irony is that the two recent acquisitions largely reintegrate the LCY network which was operated by AirUK back in the 90s, and subsequently shut down by KLM. Almost like the wheel has gone full circle.
Mike
http://www.flyvlm.com/emc.asp?pageId=1184
Worst of all, it's being sold to AF-KLM, which will mean an elimination of competition on routes such as LCY-AMS, which did have significantly more affordable fares since VLM started flying the route.
I remember that before VLM started flying LCY-AMS, KLM were wanting over 300 for a round trip on that route, and all the midday flights were scrapped - KLM cherry-picking the business traffic only on that route.
It makes AF-KLM seriously dominant at LCY, with the AF/CityJet flights, the recent purchase of ScotAirways by CityJet, existing KLM schedule and now adding VLM. I wouldn't at all be surprised if the combined operation is forced to release slots, if they don't give them up voluntarily anyway as a result of merging services.
I guess the only thing that can be hoped for is that VLM is run as a 'hands off' operation by the group, in much the way CityJet is. Who knows, maybe the long term plan is to transfer all the KLM Cityhopper operations to the VLM AOC, so that KLM is concerned with operating 'mainline' only? (However, the reverse is more likely to happen... Antwerp is swallowed up by Amsterdam.)
My primary concern is that this will lead to monopolisation of LCY by the AF/KLM group and significant increases in fares - effectivly AF/KLM bought VLM to solely kill off a competitor.
The other threat is loss of the individuality and distinctiveness of the VLM onboard service - drinks served in real glass and china, Leonidas chocolates, that sort of thing. Replaced by AF/KLM homogenised 'cardboard' service.
Of course, the real irony is that the two recent acquisitions largely reintegrate the LCY network which was operated by AirUK back in the 90s, and subsequently shut down by KLM. Almost like the wheel has gone full circle.
Mike