US Department of Transportation granted (18-Jul-2012) an application from Hainan Airlines to provide new scheduled service between Chicago and Beijing. “This is good news for air travelers in the Chicago area and around the United States,” US Transportation Secretary Ray LaHood said. “This service will provide the public with an additional option for traveling to China.” There currently is no nonstop service between Chicago and Beijing by a Chinese carrier using its own aircraft. Both American Airlines and United Airlines currently provide daily nonstop service in the Chicago-Beijing market. Hainan filed its application on 18-Jun-2012. No objections were filed to Hainan’s application, which sought rights available under the US-China aviation agreement. Hainan proposes initially to operate four times weekly service, using Boeing 787 aircraft, beginning in 2Q2013. [more - original PR]
US DoT grants Hainan Airlines application for Beijing-Chicago service
You may also be interested in the following articles...
European airline consolidation to enhance financials? Few deals to be done, at least locally
European airline margins have underperformed other regions for years. There are many reasons for this, but our analysis suggests that Europe’s relative lack of consolidation may be a significant one, since margins appear to be correlated with market concentration. Even after a number of significant deals over the past decade, the European market is less concentrated than North America, where consolidation has gone further, to the benefit of margins. Europe is also less concentrated than Asia-Pacific (analysed as its sub-regions), whose margins have consistently been the highest.
If consolidation brings structural benefits, are there still European deals that can make a difference? Europe has a long tail of small carriers, which are unlikely to have a significant impact, but comparison with North America points to the potential for further combinations among the top five. Nevertheless, there are hurdles to such deals, not least of which are the ongoing restructuring programmes at Europe’s Big Three and the incompatibility of LCC/FSC mergers, but some second tier groups could be targets.
Why Emirates and friends will soon reshape American aviation
Shortly after Emirates Airline announced its remarkable breakthrough partnership with Qantas in Sep-2012, Emirates CEO Tim Clark said he had also been talking to American Airlines for some time and publicly expressed hopes that the two would also establish a close relationship. This was despite the fact that American already had an extensive codeshare relationship with Etihad; and the third Gulf carrier, Qatar Airways, has since been invited to join the oneworld alliance – which American leads.
The Gulf airlines, and particularly Emirates, have had a devastating impact on European long-haul hub carriers. The impact will be different for US airlines, but despite the different geography, it will be much bigger than most expect. For one thing they will cut across the developed boundaries of the global alliances.