Jazeera Airways and Travelport signed (17-Dec-2009) an agreement to provide Galileo and Worldspan-connected travel agents with access to the airline’s published fares and inventory. It will be the first time that the airline has distributed its content through the GDS channel. [more]
Jazeera Airways and Travelport sign new agreement
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Iberia: capacity stabilises. IAG focuses growth on Level, its new long haul LCC
Iberia's 'Plan de Futuro' restructuring restored its profitability in 2014 and it achieved its third straight positive operating result in 2016. Its owner, IAG, rewarded it with a return to capacity growth after years of cuts and new aircraft orders. Iberia's improved returns, and a drop in performance by sister airline Vueling, lifted it from the bottom of the IAG pack in 2016.
Nevertheless, Iberia is still not earning its cost of capital and is some way short of IAG's even higher target return. Iberia's capacity growth is slowing, as it concentrates more on load factor gains in a market characterised by overcapacity. Seat numbers are levelling off in its key long haul market of Latin America, although there is some growth in North America and the 2016 launches of Shanghai and Tokyo routes will feed through to growth in NE Asia this year. In Europe, Iberia is also maintaining flat capacity in the face of rapid LCC expansion.
The second phase of 'Plan de Futuro' targets further margin expansion, but Iberia may have a bigger challenge taking the next step upwards than it did to restore profits. Meanwhile, IAG's growth focus has shifted to its new long haul low cost operator Level.
Europe's big five airline groups embrace disruption via digital innovation; some more than others
Many of Europe's leading airline groups are acknowledging the importance of establishing dedicated incubator and/or accelerator programmes to innovate in digital technology. On 24-Apr-2017 IAG announced that it had invested in two new technology companies – Esplorio and Vchain Tech. These are the first two investments under its Hangar 51 accelerator programme in partnership with L Marks, an innovation specialist and early stage investor.
IAG's investments followed easyJet's announcement earlier this year that its partnership with the incubator Founders Factory had selected two travel startups for its accelerator programme. The Lufthansa Group established its Innovation Hub in 2014 and started a new partnership with Californian startup investor ‘Plug and Play’ in 2016. While these three groups chose external partners, Ryanair has its inhouse Labs team, set up in 2014. Air France-KLM is alone among Europe's big five airline groups in not having a distinct and dedicated digital incubator/accelerator programme, but it has recognised digital's strategic importance.
Much of the airlines' rhetoric concerning these developments suggests that they are trying to associate themselves with the forces of disruption, but this will take more than rhetoric. CAPA has argued previously that the airline industry has been slow to prepare for disruption, but some are at least making a start.