Ethiopian Airlines to join Star Alliance
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European airline seat capacity growth accelerates - perhaps too quickly: Outlook for winter 2016/17
The summer 2016 season came to an end on 29-Oct-2016. Adjusting for an extra week relative to the previous summer, it produced seat growth of 6% for capacity to/from/within Europe, matching the rate of growth in summer 2015, but higher than the 10-year average rate of 4% and higher than any other summer since 2010.
Current indications from data filed with OAG are that Europe will also experience accelerating capacity growth in the winter 2016/2017 season, which runs from 30-Oct-2016 to 25-Mar-2017. Adjusting for the season being shorter by one week relative to last winter, total seat growth in Europe is set to reach 7%, compared with 6% growth in winter 2015/2016 (and 6% growth in summer 2016). This is higher than the 10-year average rate for winter of 3% and the highest winter growth since 2007/2008.
On routes to all but one region from Europe, seat growth this winter will both be faster than last winter and higher than its 10-year average. The one exception is Europe to Middle East, the fastest-growing region, where capacity growth will remain at 10%. This report presents analysis of this winter's seat growth for Europe by region and by airline group.
Star Alliance connecting partner model evolves as Juneyao Airlines replaces Mango as first member
Star Alliance's connecting partner model is evolving beyond a proposition for low cost airlines. In Oct-2016 Star disclosed its intention to add Shanghai-based Juneyao Airlines. Although Juneyao is full service, the semantics of full service versus low cost have proven irrelevant: the core concept of Star's connecting partner platform is to secure transfer options in key markets. The Star benefits for a connecting partner are only realised when connecting on the same itinerary to a Star member. Unlike the situation with full membership, Star benefits are not offered on a connecting partner when the itinerary is only point-to-point.
Juneyao gives Star a partner in China's financial hub and replaces Star's former Shanghai partner, Shanghai Airlines, which left when it merged with SkyTeam's China Eastern. Juneyao is the second announced member after the South African Airways LCC Mango, but Juneyao will be implemented first in 2Q2017. As Juneyao grows and plans intercontinental 787 flights, the airline may transition to a full member.