Amadeus announced it has signed (20-Sep-2011) nine distribution agreements with low-cost and hybrid carriers in 2011, improving access for travel agents to the inventory, schedules and fares of the over 74 million seats sold annually by these nine airlines. The global distribution system travel provider has signed distribution agreements with Air Arabia, Air Méditerranée, flydubai, Porter Airlines and Vision Airlines. Porter Airlines has also signed a full content agreement along with Frontier Airlines. In Europe, airberlin and Norwegian Air Shuttle have extended their relationship with Amadeus and renewed their existing content agreements. Earlier this year, Amadeus also implemented a solution enabling Germanwings to deploy e-ticketing services to travel agencies. Total bookings on low-cost carriers by travel agencies using Amadeus in 1H2011 increased by 21% compared with the first half of 2010. Approximately 70 low-cost carriers are now bookable within the Amadeus system. [more - original PR]
Amadeus signs agreements with nine low-cost and hybrid carriers in 2011
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Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.
US airlines Part 2: LCCs and ULCCs face the same cost overhang as their larger rivals
US low cost carriers and ULCCs observed many of the same trends in the country’s marketplace at the end of 2016 as their large global network rivals – namely, that weak pricing trends in the domestic market were improving. Each airline has its own nuanced view of that general operating environment, but they feel encouraged by what they hope is an inflection point in pricing that will lay the groundwork for a return to positive unit revenue.
Those lower cost and ultra-low cost airlines also face similar challenges to their larger counterparts – cost pressure from new labour contracts and rising oil prices. And like their larger rivals, most of the lower cost US airlines are plotting lower capacity growth in 2017 as a means to improve their respective revenue performances.
For now, pricing improvement that began in late 3Q2016 and a bump in demand after the US presidential election are sustaining the cautious optimism expressed by US airlines as 2017 gets under way. But no US airline is ready to declare that pricing traction in the country’s domestic market is on a sustained upswing.
This is Part 2 of two reports examining the outlook for US airlines in 2017.