LAN Airlines and TAM Airlines celebrated (21-Jun-2013) the first anniversary of the creation of LATAM Airlines Group and reiterated plans to join oneworld in 2Q2014. LATAM highlighted its combined fleet of 318 aircraft will be supplemented with the addition of 32 Boeing 787s, 12 A350s, 42 A320neos and the introduction of "more than" 100 sharklet-equipment aircraft to reduce emissions and improve fuel efficiency. LATAM said its cargo business is "on target to achieve the expected synergies and offer a greater network", and noted domestic cargo operates in Brazil increased due to larger cargo-capacity aircraft and dedicated freighters. LATAM CEO Enrique Cueto said, "This [LAN-TAM] partnership offers unmatchable route connectivity and is the most important achievement in the history of regional air transportation.There is no other airline group in South America that offers more flights or destinations." [more - original PR - Spanish]
LAN and TAM celebrate first anniversary of LATAM Airlines Group
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Qatar gives LATAM needed cash and a distant shareholder. Latin America is the smallest market by far for Gulf airlines, but while currently in the economic doldrums, has a longer term potential for growth. It is also a key future market for US airlines, albeit very small on the Gulf airlines' networks. Qatar is spending nearly EUR2.5 billion on equity investments, still smaller than Etihad's but illustrating a willingness to acquire airline assets, for investment and strategic reasons. In this case the immediate strategic purpose for Qatar is less apparent.
Star Alliance's privately owned Avianca is also considering a strategic shareholder; that would mean five of Latin America's eight largest airline groups could have an airline investor from outside the region.
Hawaiian Airlines: cost creep casts a slight shadow over a favourable PRASM performance
Hawaiian Airlines’ geography has been a boon for the airline throughout 2016 as the company’s unit revenue performance has outpaced that of its peers. Hawaiian has benefitted from immunity to the lack of pricing traction in many domestic markets on the US mainland, and rational capacity deployment on is largest North American routes.
The company expects to continue posting a unit revenue outperformance for the remainder of 2016, driven by still favourable capacity trends in its markets. Hawaiian’s own capacity growth is expected to fall between 3% and 4% for 2016, and remain in the low- to mid- single-digit range for the foreseeable future.
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