European Commission launched (16-Feb-2011) infringement procedures against Cyprus, Ireland, Poland, Portugal, Slovakia and Spain over their bilateral air service agreements with Russia, sending each Member State a formal request for information. The Commission is concerned that the agreements may hinder competition between European airlines and provide the basis for Siberian overflight charges that may be illegal under EU antitrust rules. Similar letters of formal notice were already sent in Oct-2010 to Austria, Finland, France, Germany and and in Jan-2011 to Belgium, Denmark, Italy, Luxembourg, The Netherlands, Sweden and the UK. The Commission is now assessing the compliance with EU law of the remaining Member States' bilateral aviation agreements with Russia. The view of the European Commission is that air transport agreements must treat all EU airlines equally and respect antitrust rules. Otherwise some EU airlines may be treated less favourably than their direct competitors or face paying unreasonable additional charges which may be passed on to consumers in higher airfares. Member States have two months to respond to the letters of formal notice. [more]
EC launches infringement procedures against six states over agreements with Russia
You may also be interested in the following articles...
Jet2.com: growth mainly in Spain and Manchester. Overcapacity an issue, and competition strong
The strongly seasonal nature of Jet2.com's schedule and the financial performance of the airline and its parent Dart Group were examined in a Jul-2016 analysis report by CAPA. That report also noted that all of the increase in passenger numbers since the year to Mar-2013 was attributable to traffic booked via Dart Group's package holidays business – Jet2holidays.com.
This report looks in some detail at Jet2.com's network and how it has changed in the three years since summer 2013.
Over the past three years Jet2.com has increased its peak summer weekly seat capacity by one third. By airport, the biggest share of this incremental capacity has been at Manchester. By destination, the lion's share of its growth has been to Spain, where there is now a capacity glut. Its markets have become increasingly competitive – not only due to other LCCs, but also because of the growth of airlines owned by integrated leisure groups such as TUI and Thomas Cook.
IAG Group: Vueling is stalling, but Aer Lingus helps to grow 2Q profits. 2016 outlook lowered
IAG increased its 2Q2016 operating profit modestly, but only because Aer Lingus boosted this year's numbers (it was not in the group in 2Q2015). The quarter was affected by externalities: negative currency impacts and softer demand conditions resulting from terrorism, the Brexit vote, macroeconomic weakness in Latin America and air traffic control strikes in Europe. The resultant deteriorating unit revenue trend was offset by lower unit costs, mainly due to lower fuel prices.
Three of IAG's four operating airlines improved their margin in 1H2016 but Vueling's declined, since the external disruption affected it the most. Vueling's operating margin has been on a downward trend since its acquisition by IAG in 2013. Its capacity growth plans for FY2016 have now been trimmed, also scaling back the group's growth for the year.
IAG now expects 2016 operating profit growth of a low single-digit percentage, much less than the 40% increase previously anticipated but still an increase. This outlook is more positive than that given recently by Lufthansa, which expects a fall in profit this year. Moreover, IAG remains a higher margin group than either of Lufthansa or Air France-KLM, and should be better placed if there is to be a full-scale downturn.