See below the list of current and pending members of the Alliances.
393 total articles
The CAPA Asia Aviation Summit was held on 15/16-Nov-2016 at the Capella at Sentosa in Singapore. First off, BOC Aviation's Robert Martin and Indigo Partners' William Franke discussed the outlook for long haul LCCs, as well as the aviation implications from Donald Trump's election to US President. Malaysia Airlines CEO Peter Bellew gave a key presentation on the transformation of the airline and plans for its A380 fleet.
Panel discussions addressed the future of the full service airline model in Asia, the opportunities from big data, China's "One Belt, One Road" strategy, joint venture strategies, partnerships/alliances at LCCs.
Day one was capped off by a Gala Dinner with the CAPA Asia Aviation Awards for Excellence.
One of the five oldest airlines in the world that are still in operation, CSA Czech Airlines is also the smallest airline in SkyTeam by passenger numbers. After several years of losses the airline returned to profit in 2015 and expects another positive result in 2016, albeit below last year's level. CSA Czech Airlines is growing once more this year, after a restructuring programme involving reductions in its fleet, capacity and headcount it has also developed a profitable contract flying business. Together with lower fuel prices, its restructuring has helped to achieve the airline's turnaround.
CSA Czech Airlines has a predominantly European network. Its only intercontinental route is from Prague to Seoul, the hub of its part-owner – codeshare partner and fellow SkyTeam member, Korean Air. Its biggest destination market is Russia, but this is followed by the Western European countries France, Italy and Germany. It has a relatively low share of seats at its hub in Prague, where LCCs have a significant share and Ryanair has opened a base this winter. However, although CSA faces strong competitors on routes to non-SkyTeam hubs, competition is limited elsewhere by its targeting of niche regional routes and its use of codeshare agreements (including with Travel Service, another part owner).
Part 1 of CAPA's analysis of the S7 Airlines Group examined its network and competitive positioning, particularly with respect to the Russian market leader Aeroflot Group. Away from its Moscow Domodedovo hub, S7 has pockets of strength serving cities in Asia from regional Russian airports.
This second part of the report on S7 highlights its respectable track record of growth in its operations and profitability since the establishment of its subsidiary Globus in 2008. In 8M2016 its passenger growth rate accelerated to 25%, after a 6% increase in 2015. Although demand for international air travel to/from Russia has slumped due to geopolitical developments, S7 has benefited from growth in the domestic market and from capacity cuts by foreign competitors on international routes. It has also benefited from the 2015 collapse of Transaero (although Aeroflot has gained more from this).
S7 Airlines, together with its subsidiary Globus, achieved a 25% increase in passenger numbers in the first eight months of 2016. Passengers flying the S7 brand totalled 10.6 million in 2015, making it Russia's second biggest airline after Aeroflot (thanks also to the collapse last year of former number two Transaero). This first part of CAPA's report examines S7's current network. A second part will analyse its growth, fleet and financial track record.
Moscow Domodedovo is S7's biggest airport and its main hub for the domestic market, which accounts for around two thirds of its seat capacity. Domodedovo is also its hub for international routes to Europe (mainly Eastern and Central Europe). Although it is the biggest airline at this airport, on a city pair basis on many routes from Moscow there is significant competition from the market leader Aeroflot, whose main hub is Sheremetyevo.
However, S7 also has a noteworthy network to cities in Northeast and Southeast Asia from regional airports elsewhere in Russia, in particular Novosibirsk and Vladivostok. Competition on these Asian routes is much less severe: indeed, S7 is the only operator on the majority of its routes to NE/SE Asia and its position is further boosted by codeshares (including with Aeroflot).
Star Alliance's connecting partner model is evolving beyond a proposition for low cost airlines. In Oct-2016 Star disclosed its intention to add Shanghai-based Juneyao Airlines. Although Juneyao is full service, the semantics of full service versus low cost have proven irrelevant: the core concept of Star's connecting partner platform is to secure transfer options in key markets. The Star benefits for a connecting partner are only realised when connecting on the same itinerary to a Star member. Unlike the situation with full membership, Star benefits are not offered on a connecting partner when the itinerary is only point-to-point.
Juneyao gives Star a partner in China's financial hub and replaces Star's former Shanghai partner, Shanghai Airlines, which left when it merged with SkyTeam's China Eastern. Juneyao is the second announced member after the South African Airways LCC Mango, but Juneyao will be implemented first in 2Q2017. As Juneyao grows and plans intercontinental 787 flights, the airline may transition to a full member.
The international aviation world will look very different in a decade. The big US airlines are re-emerging from their shells as prosperity (and slow growth in their mature domestic market) prompts them to go forth internationally.
China is inevitably and remorselessly stamping its shape on global markets; the Gulf carriers continue to expand and attract the ire of those who prefer the status quo; and low cost carriers proliferate and metamorphose.
And all this while, sadly, airlines look like remaining confined to the 1940s’ archaic ownership and control rules. Within this confinement, they continue to struggle to find new ways of expanding their geography – and, in some cases, of restricting others’. International markets have another drawback. They tend to be much more competitive, in diverse ways, than nationally protected domestic markets.