South African Airways (SAA) reportedly announced it was looking for a strategic equity partner for its technical division, SAA Technical, as well as for its rewards programme, Voyager (Business Day/Business Report, 11-Feb-2010). South African opposition party, the Democratic Alliance, welcomed what it called a "move towards privatisation" by SAA selling off minority interests in its subsidiaries. The airline stated it will retain a controlling stake in the subsidiaries.
SAA moves towards privatisation
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LOT Polish Airlines: now restructured, and long haul focus is on 2020 growth. Partnerships critical
On 8-Sep-2016 LOT Polish Airlines announced its "2020 profitable growth strategy". This involves a goal to achieve "sustainable viability", after a restructuring programme which returned LOT to operating profit in 2014 after six loss-making years. Its privatisation may even be back on the agenda.
LOT currently ranks behind LCCs Ryanair and Wizz Air by share of traffic in Poland, which offers superior traffic growth potential versus Europe as a whole. The airline aims to increase passenger numbers from 4.3 million in 2015 to 10 million in 2020, growing its fleet from 43 to 70 aircraft. LOT's expansion will focus on long haul, particularly North America and Asia, where it currently has only five routes and where competition is considerably lower than on short/medium haul. Initial plans include the launch of Warsaw-Seoul this winter and a return to Warsaw-New York Newark next summer.
According to data from LOT, its restructuring has left it with a fairly efficient cost base by legacy airline standards and this will be important in competing with LCCs (but there is still a cost gap with LCCs). LOT's growth will focus on long haul but will need short-haul European feed – and partnerships. Although LOT no longer appears to be considering leaving the Star Alliance, it remains excluded from American and Asian JVs. Further, those JVs preclude members from working with LOT. Partnership growth will be as critical as it will be challenging.
Odessa International Airport Part 2: Traffic profile, hub connections and airport privatisation
Odessa International Airport (OIA) is business-oriented, with limited exposure to low cost airlines, but it represents a city-region that retains a robust and multi-faceted economy. A modernisation project has been delayed but the first part of it should be completed in 2016, thus giving it the opportunity to compete directly with the much larger airport at the capital, Kiev.
This two part report examines Odessa International Airport by way of several sets of metrics, looks at the airports that are rivals to it, at its construction activities and its convoluted ownership.
Part 1 looked at the region's history and economic background. Part 2 reviews the airline market characteristics and issues around expanding the airport.