IAG has reportedly appointed JPMorgan Chase to advise on a bid for TAP Portugal (The Financial Times/Bloomberg, 03-Sep-2011). IAG has previously expressed interest in Star Alliance-member TAP to gain access to TAP’s extensive Brazilian network. IAG is already Europe’s dominant carrier on routes to Latin America, owing to Iberia’s extensive network across the region.
IAG appoints advisor for TAP bid: reports
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Asia-Europe slowest-growing major market but dynamic: AF-KLM and SIA shrink as oneworld, China grow
Asia-Europe, which is one of IATA's big four international markets, has become the slowest-growing. The market underwent RPK expansion of only 1.5% in Jul-2016, the latest data available. Uncertainty in Europe and terrorism fears mean that some Asian travellers choose Australia and North America or, as IATA has flagged – travel within Asia, which has expanded by nearly double digits.
Although market expansion was slow in the first part of 2016, so too was capacity. Yet this changed in Jul-2016 as capacity increased more quickly, perhaps as airlines expected a stronger summer. Despite slow passenger growth, dynamics are highly varied – except for yield declines. The combined RPK growth of IAG (7.2%) Cathay Pacific (3.7%) and Finnair (8.7%) was not enough to offset the contraction of the largest airline in the market, AF-KLM (7.9%).
From the reported geographic data by all major airlines, load factors are falling.
Spain aviation and LCCs: 2016 traffic above pre-crisis levels, but capacity surplus unsustainable
After suffering a protracted recession in 2009 to 2013, Spain's air travel market at last looks set to exceed its pre-crisis passenger numbers in 2016, albeit with something of an airline capacity glut. During the recession traffic was actually remarkably robust, thanks to buoyant inbound tourism and the growth of LCCs.
Europe's third largest aviation market by seats is dominated by short haul, with long haul strongly skewed towards trans-Atlantic routes (North and South) – principally operated by a resurgent Iberia and Air Europa. For long haul connections elsewhere Spain relies on other European hubs, although Iberia has re-entered Asia Pacific with Madrid-Shanghai, and plans a Tokyo service. The superconnectors have yet to make a big impression in Spain, but this may change.
Ryanair has been the largest airline by seats in Spain since 2013, the result of its own growth and also of second ranked Iberia's restructuring. IAG's other Spanish airline – the fast-growing Vueling – has been the country's number three ranked airline since 2010, pushing Air Europa into fourth. Madrid has remained Spain's largest airport, but Barcelona's growth has outpaced Madrid's. Spain's airport operator AENA is benefiting from double-digit growth this year, but airlines are suffering yield declines.