Continental Airlines aiming to join Star Alliance on 27-Oct-09
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Global alliances as the airline system metamorphoses: A view to 2025
The international aviation world will look very different in a decade. The big US airlines are re-emerging from their shells as prosperity (and slow growth in their mature domestic market) prompts them to go forth internationally.
China is inevitably and remorselessly stamping its shape on global markets; the Gulf carriers continue to expand and attract the ire of those who prefer the status quo; and low cost carriers proliferate and metamorphose.
And all this while, sadly, airlines look like remaining confined to the 1940s’ archaic ownership and control rules. Within this confinement, they continue to struggle to find new ways of expanding their geography – and, in some cases, of restricting others’. International markets have another drawback. They tend to be much more competitive, in diverse ways, than nationally protected domestic markets.
CSA Czech Airlines: restructuring, partnerships, and now growth for SkyTeam's smallest airline
One of the five oldest airlines in the world that are still in operation, CSA Czech Airlines is also the smallest airline in SkyTeam by passenger numbers. After several years of losses the airline returned to profit in 2015 and expects another positive result in 2016, albeit below last year's level. CSA Czech Airlines is growing once more this year, after a restructuring programme involving reductions in its fleet, capacity and headcount it has also developed a profitable contract flying business. Together with lower fuel prices, its restructuring has helped to achieve the airline's turnaround.
CSA Czech Airlines has a predominantly European network. Its only intercontinental route is from Prague to Seoul, the hub of its part-owner – codeshare partner and fellow SkyTeam member, Korean Air. Its biggest destination market is Russia, but this is followed by the Western European countries France, Italy and Germany. It has a relatively low share of seats at its hub in Prague, where LCCs have a significant share and Ryanair has opened a base this winter. However, although CSA faces strong competitors on routes to non-SkyTeam hubs, competition is limited elsewhere by its targeting of niche regional routes and its use of codeshare agreements (including with Travel Service, another part owner).