Brussels Airlines, the result of the merger of full-service carrier SN Brussels Airlines and LCC Virgin Express, has established five priorities in its effort to reinforce its profitability, which CEO Philippe Vander Putten said is at an unacceptably low level.

With net earnings of EUR14.5 million (US$19.5 million) on combined revenue of EUR892 million in 2006, the new carrier's margin of 1.6% was well below the 3.5% average attained by Assn. of European Airlines members. Speaking to the European Aviation Club in Brussels, Vander Putten said customer satisfaction, the "defense and growth" of its African network, the success of its b.flex and b.light economy products, integration of the constituent carriers and cost reduction are key to improving those results.

There are some good signs. "We have been able to retain the VEX customers, and the former SN Brussels passengers who have traveled with the new carrier are happy with the service. Thus I would say it is a success. Forward bookings are up 5% compared to the year-ago period," he said.

The new SN has eliminated business class across its short-haul network, as those passengers accounted for just 3% of the total during the three months prior to the merger. While the African network represents only 7% of passengers, it accounts for 20% of revenue and 100% of freight and "is clearly profitable," according to Vander Putten. "We need to defend the fortress we have built there," he said, adding that other carriers, including Air France-KLM, are keen to attack its African presence. The defense strategy comprises more frequencies, more direct flights, more destinations and development of regional projects. "We want to create minihubs in west, east and central Africa to feed and de-feed our long-haul network."

He said that the carrier is considering a "basket" of new destinations. "We could announce them soon. However, what I cannot control is how quickly we can find" a fifth A330, he said. Earlier, SN took delivery of its fourth A330-300, which will be used throughout the summer on an ad hoc basis in Europe and will start operating on the African network later this year.