European Aviation Restructuring Continues: Cyprus Airways exits, Aer Lingus holds off British Airways

In European passenger aviation 2015 began much as expected – further pressure for restructuring. Two events this week presaged much of what we can expect in the coming twelve months. First, Cyprus Airways was grounded indefinitely when the EU Commission’s State Aid investigation led to a ruling requiring the company to repay 65 million Euro […]

Read More European Aviation Restructuring Continues: Cyprus Airways exits, Aer Lingus holds off British Airways

The Year in Passenger Aviation 2014

As 2014 draws to a close, passenger aviation has experienced much of the same as previous years: Continuing challenges to the cost restructuring of the legacy carriers including debilitating strike action by pilots for Air France and Lufthansa that effectively wiped out their profits for the year. The service upgrading strategies of low-cost Carriers as direct threats […]

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IAG profits rise strongly…in contrast to Air France/KLM and Lufthansa Group

In stark contrast to financial results for Air France/KLM and Lufthansa Group, IAG (British Airways, BMI, Iberia and Vueling) posted strong financials at the end of Q3 2014. The table below shows a comparative between the three European legacy groups   (source: CAPA and company reports)   So how has IAG managed to improve its […]

Read More IAG profits rise strongly…in contrast to Air France/KLM and Lufthansa Group

Brief Update: Etihad-Alitalia Alliance

The EU Commission will make a final decision on the proposed 49% equity stake acquisition by Etihad in the struggling Italian national carrier, Alitalia. According to Reuters, the EU Commission may accept concessions from Etihad/Alitalia such as slots on Rome to Belgrade (Etihad has a stake in Air Serbia) and Rome-New York. In August, Abu Dhabi’s Etihad […]

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More of the Same…Lufthansa Group moderates its financial outlook for 2015

Citing a series of unrelated events and factors including the Ukraine conflict, Ebola, pilot strikes and weak revenue conditions, Lufthansa Group remained cautious about the prospects for 2015. The Passenger Airline division, which produced more than 75 percent of Lufthansa Group’s revenue in first 9 months of 2014, posted a 1% decline in revenue and a 41 million euro fall […]

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“The only thing that’s different is you have the sea under you” – Norwegian Shuttle’s quest to operate low-cost Transatlantic

The battle is on. Norwegian Shuttle – Norway and Scandinavia’s newest and fastest growing airline – is pressing ahead with the its LCC transatlantic service. It offers all economy class (with some “premium economy” seats at the front of the plane) on their 787-8 and 787-9 Dreamliners. CEO of Norwegian Air International (NAI) (the holding company operating the […]

Read More “The only thing that’s different is you have the sea under you” – Norwegian Shuttle’s quest to operate low-cost Transatlantic