International Airlines Group (IAG) CFO Enrique Dupuy said the merger will change the way the company’s component carriers purchase their aircraft (AINonline, 09-May-2011). Iberia and British Airways will combine their purchasing power for aircraft acquisitions under a unified fleet renewal strategy, but will continue to operate and maintain their fleets separately. IAG has already ordered eight A330-300s, which will replace up to 16 of Iberia’s A340s, which are leased and due for renewal in six to seven years.
International Airlines Group implementing combined fleet strategy
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London airports and a new runway: Heathrow the business champion but the biggest growth is elsewhere
As the British government approaches a final decision on the construction of an additional runway in southeast England it is pertinent to look at how passenger traffic is developing at the two main airports that are in contention – Heathrow and Gatwick, and at the next two largest London area airports, Stansted and Luton.
While Luton stepped back from the runway debate (its ‘proposal’ was submitted by a third party), the management at Stansted Airport (M.A.G), having been knocked back by the Airport Commission’s report, has found renewed vigour as the scope of the objections to both Heathrow and Gatwick expansion became clear. Indeed, the suggestion that the government might decide to let airports compete, rather than itself funnel resources into one location, has inspired M.A.G. to revisit its own ambitions for Stansted.
That is assuming of course that a decision is ever reached, as, unbelievably, it has been postponed yet again while the Prime Minister, Mrs May, ensures that a Cabinet transport sub-committee that is known to be divided on the issue has a good debate about it. Then, having made a recommendation, MPs - also divided - will have another year to argue over it and - perhaps - fail to reach a consensus.
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.