Sólyom Hungarian Airways’ initial routes were revealed with the airline planning to serve Amsterdam, Brussels, Frankfurt, London, Milan, Paris and Stockholm from Budapest. The airline, according to reports from Vilaggazdasag, Budapest Business Journal and AIRportal.hu, expects to take delivery of its first aircraft on 18-Aug-2013, with ticket sales to launch around the same time. The airline expects to take delivery of five more aircraft by the end of Sep-2013. Sólyom's call sign will be "English" Hungary's Capitol Consulting Group (CCG) stated the airline's CEO József Vágó's estimates of the airline's operations are nearly impossible to achieve and predicted the airline would rapidly accumulate "massive losses" ahead of potentially collapsing in 2017. As previously reported by CAPA, the airline plans to replace Malev Hungarian Airlines which suspended operations in early 2012 and plans to operate six aircraft by the end of Sep-2013. The airline plans to expand its fleet to 25 aircraft by the end of 2014 and 50 by the end of 2017, including 10 widebody aircraft.
Sólyom Hungarian Airways’ initial routes revealed
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Europe's aviation strike spike could signal a cyclical peak - with downturn to follow
One swallow does not make a spring and nor does a rash of aviation strike news guarantee a turning point for the aviation industry. But the signs are ominous. In the month of Jun-2016 (to 20-Jun-2016), there have been 136 articles on CAPA's website mentioning the word 'strike'. This compares with 81 for the first 20 days of Jun-2015. For 2016 so far (1-Jan-2016 to 20-Jun-2016), the 's' word has occurred in 594 articles – about 20% more than in the same period in each of the past two years. If this rate continues, 2016 could be the biggest year for strike-related articles since before the global financial crisis.
The vast majority of the Jun-2016 articles – 80% – relate to Europe. A significant source is air traffic control disputes, particularly French ATC. There have also been strikes and/or strike threats involving airport workers and ground handlers. Among European airlines, Air France has generated the most coverage for its ongoing dispute with its pilots, and it may also face a cabin crew strike. Lufthansa has not yet faced a strike by its employees this year, but has not yet reached new agreements with pilots or cabin crew after industrial action last year.
History tells us that labour's demands grow as profits rise. The apparent increase in industrial action this year could be a signal of an approaching peak in the airline profit cycle. There are other causes of unrest, such as impending French labour legislation, but the correlation reflects some history.
Air France-KLM: margin grows, but performance and profit below IAG & Lufthansa airline groups.
The first of Europe's big three legacy airline groups to report results for 2Q2016, Air France-KLM improved its operating margin and still expects higher operating free cash flow for FY2016. However, it remains less profitable than the other two big legacy groups, IAG and Lufthansa, and is still reluctant to give a profit target for FY2016.
Air France-KLM's commentary on the outlook implies that it now expects to make a lower profit this year than previously anticipated, even if this is likely to be higher than in 2015. In effect, this completes a full set of profit warnings from the big three legacy groups, since IAG and Lufthansa have already signalled a lowering of their profit outlook for 2016.
By contrast, LCCs have generally been more positive in their 2Q reporting and outlook (with the notable exception of easyJet). All European airlines have highlighted a weakening outlook for unit revenue, due to industry capacity growth plus geopolitical and macroeconomic risks, but low cost airlines such as Ryanair and Wizz Air appear better placed to cope with this outlook, given their lower unit costs. At this point in the cycle, new Air France-KLM CEO Jean-Marc Janaillac will need to balance growth against productivity.