Continental Airlines completed (27-Oct-2009) bilateral commercial agreements with all of the existing 24 Star Alliance members and signed codesharing agreements with four members - United Airlines, Lufthansa, Air Canada and bmi - as it joined the alliance. [more]
Continental Airlines takes final steps on path to joining Star Alliance
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Lufthansa and Etihad bedfellows - at last - but unions may make marriage a distant prospect
There can be no understating the symbolic change in mindset of Lufthansa agreeing to partner with Etihad. Lufthansa has spent the better part of a decade rallying against Gulf airlines to the press, lobbying in Europe's power corridors and seeking a range of aeropolitical measures to wind back new competitors. Etihad has been the prime target for its investment and ongoing top-ups in a range of European airlines including Lufthansa's home competitor, the failing airberlin. Despite that, it is not well known that the two have come close to a liaison before, suggesting that each sees an intrinsic logic in a relationship.
The partnership has potential to be more significant than Emirates-Qantas, Qatar-IAG or Etihad-AF-KLM. But for now it is limited in scope and caution should be exercised in extrapolating too far at this stage.
Lufthansa CEO Carsten Spohr is seeking new growth platforms that sidestep the flagship business' uncompromising unions who would seemingly prefer a status quo that exists only in memory. Their support will be necessary if the partnership is to work and grow. Then Lufthansa, which has rallied the Star Alliance and JV partners against Gulf airlines, will need to explain its change of heart. For now Lufthansa will not partner on Etihad's beyond-Abu Dhabi network, a move that would embrace the fundamental business plan of Etihad and peers. That upside remains a matter for speculation.
Copa Holdings believes a recovery in demand will support marked rise in 2017 capacity growth
Panama’s Copa Airlines is planning markedly increased capacity year-on-year in 2017 as demand patterns in Latin America continue to build on strength that began to emerge in 2H2016. That followed two years of economic contraction in the region. Most of Copa’s growth in 2017 stems from higher utilisation, given that its fleet is expanding by just a single aircraft during the year. The airline also plans to add back, in the lower season, the capacity that it cut in 2016 to adjust to Latin America’s weakened supply demand scenario.
Copa’s outlook is based on its determination that demand is holding steady in Latin America, and it is joining other airlines in the region in expanding capacity as a slow economic recovery begins to take effect. Its approach, that there is strengthening demand, stretches broadly across its network, even in Brazil, whose deep economic recession drove Latin America’s overall two year long economic contraction.
Copa has no concerns about its fellow Star Alliance partners Avianca and United potentially deepening their partnership through a proposed equity stake by United in Avianca. Although Copa has not publicly confirmed that it courted Avianca during its evaluation process for a strategic partner, the airline now believes United is the best partner for Avianca.