As IAG’s pursuit of Scandinavian low-cost carrier Norwegian continues, Routesonline examines the current network competition and why a deal will give the British Airways owner immediate scale in the long-haul low-cost market.
Delta Air Lines was named the world’s most on-time airline in 2017 with an on-time performance of 85.9 percent – the first US-based airline to win the global airline category since the awards were created.
Routesonline looks back at an eventful second half of 2017 which included the 23rd World Routes taking place in Barcelona, the failures of Monarch and Air Berlin, and Airbus' A380 celebrating a decade of commercial flight.
IAG, the owner of British Airways and Aer Lingus, is to expand its presence at Gatwick Airport after striking a deal to buy the majority of slots vacated by the collapse of Monarch. Hungarian carrier Wizz Air is also set to take Monarch's former slots at London Luton.
Barcelona seemingly has a good mix of the ingredients needed for IAG to make this new long haul low cost business work. It is a growing market in terms of demand and passenger flows are dominated by IAG airlines Vueling and Iberia providing a strong connecting feed into the long-haul operation to complement local traffic.
The Chinese city will become Iberia’s first Asian destination ahead of its previously announced launch of flights to Tokyo from October 18, 2016. This year the Spanish airline is also resuming services to Puerto Rico (from May 15, 2016) and to Johannesburg (from August 1, 2016), while its seasonal flights to Boston, previously offered from March to October, will operate through December this year.
The oneworld alliance member will introduce a three times weekly service between Madrid and Tokyo from October 18, 2016. The Madrid – Shanghai route, also expected to be flown three times weekly, will commence from a similar time, but Iberia is still awaiting final approval from Chinese authorities and slots at Pudong International Airport before opening reservations.
South America’s LATAM Airlines Group is applying for regulatory approval to enter into joint business arrangements with US major, American Airlines and IAG members, British Airways and Iberia to offer a coordinated network between markets in South America and North America and Europe, respectively.
The announcement marks the return of the Spanish flag carrier to Puerto Rico after a three-year hiatus following a restructuring of its long-haul operations to support its business transformation programme and return to profitability. The airline ended its previous flights between Madrid and San Juan in March 2013 but the void was quickly filled by Air Europa which introduced its own twice weekly operation on the route from January 2014.
The new service will commence from March 28, 2016 and will be operated on a four times weekly schedule using a 180-seat Airbus A320 with both Business and Economy offerings. Alongside supporting the point-to-point local flows on the city pair, the route will also offer connections with another 34 destinations in Spain, Portugal, Africa, the Middle East, and Latin America via Iberia’s mainline network.
Iberia says the improved economic outlook has led the airline to seek new opportunities both in its traditional markets and in new territories. Destinations now under study include Tokyo, Doha, Johannesburg, Toronto, Guadalajara, Managua, San Juan de Puerto Rico, Brasilia, and Asunción with flights to the selected destinations being launched in 2016 and 2017.
In its ruling the Commission had concerns that the merged entity would have faced insufficient competition on several routes. The Commission also found that the merged entity would have prevented Aer Lingus from continuing to provide traffic to the long-haul flights of competing airlines on several routes and has requested the parties to address the Commission’s concerns on this matter.
The Government said that having carefully considered all elements of the offer, it considered that a sale of the State’s minority shareholding to IAG, on the basis of the terms offered, would be “the best means of securing and enhancing Ireland’s connectivity with the rest of the world and maintaining a vibrant and competitive air transport industry in Ireland”. And it would also “best serve the interests of the travelling public, Aer Lingus and its employees, the Irish tourism industry and the Irish economy as a whole”.
The group has disputed the evidence and conclusions that unfair subsidies are being provided by the Gulf States to Gulf carriers contained in the White Paper which has been prepared by American Airlines, Delta and United.
The decision of three major European operators to depart the AEA shows the dispute between Europe and the Gulf carriers is clearly heating up. It is a very rare move that a key member of an EU trade association withdraws, but for three of its membership to leave shows significant concern at its abilities to fulfil its role.
The aircraft in question were originally options from a previous commitment that were converted into a firm order in September 2014. The first deliveries were always due for late 2015, but the original schedule had seen deliveries initially planned through to late 2017.
These additional destinations raise to 23 the number of routes resumed or launched by Iberia in the past year, since agreements were reached with employee unions on cost reductions and productivity hikes last February and March, and the implementation of Iberia’s Future Plan.
Bristol Airport and airBaltic have topped the charts in a recent report by OAG which has revealed its punctuality league for 2014, highlighting on-time performance results for airlines and airports.
