Emirates: “The route structures complement each other, with British Airways flying to places that Iberia doesn’t and vice versa, but complexity is the bugbear of our business and this merger looks rather too complex,” Maurice Flanagan, vice-Chairman. Source: Bloomberg, 06-Sep-2010.
Emirates expresses doubts about BA/Iberia merger
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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.
EU-Gulf open skies negotiations: Qatar CEO Al Baker warns of biased 'fair competition' definition
As the US-Gulf airline dispute loses momentum with the American government, the big Middle East aeropolitical debate will now shift across the Atlantic to Europe, where the European Commission has a mandate to try to negotiate an open skies agreement with Qatar and the United Arab Emirates, as well as other countries/blocs, including Turkey and ASEAN.
Qatar Airways CEO H.E. Akbar Al Baker gave a keynote presentation at the recent CAPA-ACTE Global Aviation Summit in Amsterdam and addressed the subject of the EU mandate. Mr Al Baker called for unquestionable third and fourth freedom liberalisation and eventual fifth freedom liberalisation. The devil as always is in the detail; the non-EU airlines in the negotiations are sceptical about how the EU will define a "fair competition" clause, and whether it will be left abstract enough that "fair competition" could potentially be used against airlines in a way they have not envisaged. The Brexit referendum could result in the EU negotiating side losing the UK, whose liberal views have balanced those of the more protectionist France and Germany.