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AENA’s stop-start partial privatisation is ready to start again. Can it succeed this time around?

5-Feb-2014 10:00 PM

If all goes to plan (and that is a very big if) Spain’s state airport operator AENA’s part privatisation is supposed to swing back into action in Feb-2014, having been suspended late in 2011 following a General Election and the rise to power of the People's Party (PP), led by Mariano Rajoy.

It would be first privatisation in Spain since the start of the economic crisis – as well as being that of the busiest airport operator in the world.

Prior to the election, the People's Party had been unequivocal about both the format of the privatisation and the valuation placed on the airports. But since then, the government has had to handle a sovereign debt crisis with attendant public deficit, an economy in freefall and raging unemployment, particularly amongst young people, for whom it has reached 50% of the workforce. 

Etihad reaches a decade, and helps transform global aviation

12-Nov-2013 5:36 PM

On 12-Aug-2013 a historic milestone rolls around, when Etihad Airways turns 10 years old. The carrier, which proudly advertises itself as the fastest growing airline in the history of aviation, has helped usher in a revolution that has reshaped the global airline industry.

Etihad Airways was born as the national airline of the UAE via a Royal Decree issued in Jul-2003. Less than six months later it began operations, with just one aircraft. It launched itself in the midst of a major shake-up of the Middle East’s market and with a mission to support the development of Abu Dhabi as a business and leisure destination and help realise the transformation of the city into a global hub.

A decade on, Eithad Airways has achieved its objectives. Through a combination of rapid organic growth, aggressive partnership development and innovative equity acquisitions, the carrier has become one of the headline players not only in the Middle East, but in global aviation. Few carriers can boast such success in such a small amount of time. Fewer still can claim to be part of a revolution that is helping to change how the world connects.

Manchester Airport route network expansion becomes an interesting model for the industry. Part 1

16-Oct-2013 2:04 PM

As Manchester Airports Group (MAG) considers its route network development strategy, three major external factors will shape its future:

Firstly, the UK Airports Commission’s deliberations on future UK airport capacity increases and where they should be, if at all.

Although Manchester Airport handles more passengers, for now at least it appears to play a secondary role in the group’s strategy to MAG's recent acquisition, Stansted Airport.

Secondly, the delivery (or not) of ‘HS2’, the high-speed rail system that would serve Manchester Airport directly and also a station at Derby, close to the group’s East Midlands Airport.

Finally, the creation of an ‘airport city’ on land close to Manchester Airport, which will be the UK’s first such planned development. All these factors impose on Manchester Airport’s route network planning, which has already been undergoing a transformation in recent years.

This is the first of a two part report on MAG, the ingredients in its network planning – LCCs, Gulf airlines and China – and the likely role of the Airport City.

Philippine Airlines will need to overcome challenges with new London Heathrow service

18-Sep-2013 9:00 AM

Philippine Airlines (PAL) is planning to launch services to London in early Nov-2013, the first step in an ambitious plan for resuming flights to Europe. PAL has secured Heathrow slots but the flight times are not ideal as they do not support connecting services, which the carrier will likely need to sustain the new route.

PAL will face intense competition from several carriers in the Manila-London market as well as in planned new services to continental Europe. While PAL will be the only airline offering non-stop service between the Philippines and Europe, the market is well served on a one-stop basis by several Asian and Gulf carriers.

PAL announced on 17-Sep-2013 that London Heathrow will be its first European destination since 1998 with flights beginning on 4-Nov-2013. The Manila-London Heathrow route will initially be served with five weekly frequencies using 777-300ERs.

Air Serbia’s upcoming expansion under Etihad to see creation of Eastern European hub

9-Sep-2013 6:40 PM

Air Serbia’s recent rebranding from Jat Airways is the beginning of a number of significant developments for the airline which will also lead to changes in the Serbian aviation market. Through its partnership with Etihad Airways, Air Serbia will be establishing a medium sized hub in Belgrade with a restructured network featuring 12 new destinations and a new fleet of A319 aircraft. Through this hub other airlines within the Etihad’s ‘equity alliance’ will be able to take advantage of an increased presence in the Eastern European region.

As previously reported by CAPA, Serbia's Government and Etihad Airways established on 1-Aug-2013 a strategic partnership to secure the future of Jat Airways which was subsequently renamed and rebranded as Air Serbia. The partnership included the acquisition of 49% of Air Serbia by Etihad on 01-Jan-2014 and Etihad being awarded a five-year management contract

Etihad and the Serbian Government agreed to both inject USD40 million into the airline while both parties will each provide up to USD60 million in further funding. Debt from Jat Airways was also written off by the Serbian Government which will allow Air Serbia to launch from a clean sheet.

Air Lituanica launches operations, becomes Lithuania’s sole scheduled airline

12-Jul-2013 5:13 PM

Air Lituanica launched services at the end of Jun-2013, making it the first scheduled Lithuanian carrier since the collapse of FlyLAL in 2009 and Star1 Airlines in 2010. Air Lituanica will see Lithuania once again connected to other key European countries through a home-based carrier.

As the largest of the three Baltic states with a land area of 65,300km2, Lithuania has a population of about three million and had a GDP in 2012 of about USD42 billion, according to World Bank data. The country currently has four airports in Vilnius, Kaunas, Palanga and Šiauliai which are served by about 20 foreign carriers.

Aside from Air Lituanica, there are currently five other Lithuanian airlines including five charter carriers (Aurela, Avion Express, DOT LT, Grand Cru Airlines and Small Planet Airlines) and one cargo carrier (Aviavilsa). There have been no domestic services in the country since the demise of FlyLAL.

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