Non-Subscriber Extract
Executive Overview: Jane's World Airlines
04 March 2008
Jane's World Airlines highlights industry trends from mature airline consolidation to new airline start-ups
Mature airline consolidation
The protracted search for new investors in Alitalia may yet involve another well established carrier following the previously successful acquisitions of KLM and SWISS by Air France and Lufthansa respectively. Iberia is the subject of a possible takeover, whilst its Iberian peninsular neighbour, TAP Portugal, has purchased the Portuguese regional carrier Portugalia. In June 2007, the SAS Group unveiled the SAS Group Strategy 2011. Parts of the Group's plans include the divestment of its stakes in Spanair, bmi and Air Greenland.
Elsewhere in Europe, Jane's Transport Finance reports, Serbia has approved privatisation of flag carrier Jat Airways and that Aeroflot, Air-India and Icelandair have shown interest in bidding in a tender for Jat Airways. In Bulgaria, Chimimport, an industrial conglomerate, has appointed Lufthansa Consulting to advise on the restructuring and merger of the former's three airline interests, Bulgaria Air, Hemus Air and Viaggio Air. Finally, Russian interest in the consolidation process is also evident with the purchase earlier in 2007 of Malev by AirBridge, a Hungarian company backed by Krasair, Russia's fourth-largest airline as well as Aeroflot's previous interest in Alitalia and current interest in JAT Airways.
Liberalisation continues
Throughout 2007, the European Union continued to start or conclude agreements with various other countries worldwide on further harmonising or enhancing existing aviation agreements. More recently, in February 2008, the US announced a new Open Skies agreement with Australia.
Financial recovery
An improvement in financial results was recorded from the majority of the leading airline or airline groupings in 2006 (or FY2006/2007) and this trend seems to have been extended for 2007. Some results do, however, reflect restructuring items. Repairing balance sheets continues to challenge the vast majority.
Traffic Growth
ICAO's preliminary 2007 figures also reported 2.2 billion passengers were carried on scheduled passenger flights (an increase of around 6 per cent) over 2006.
Aircraft order books
According to Airbus' latest Global Market Forecast (released in February 2008), the aircraft manufacturer foresees a demand for 24,300 new passenger and freighter aircraft valued at USD2.8 trillion between 2008 and 2026, with an annual average delivery of 1,215 aircraft.
Safety
In July 2007, Indonesia and ICAO signed a declaration for prompt and wide-ranging action for improving the safety of its civil aviation system. In a keynote address at the Strategic Aviation Safety Summit in Indonesia, ICAO's President, Robert Gonzalez said, "Since the beginning of 2007, there have been two fatal accidents [in Indonesia] and at least one serious accident resulting in a hull loss."
Security
In a September 2007 address, ICAO's president said: "The ICAO Universal Security Audit Programme (USAP), created in 2002... had "audited 174 (of 190 ICAO contracting states), well on course for auditing all 190 states by the end of 2007."
Selected Regional briefs
North Africa and Middle East
airDC is the name of a new airline created by Hewa Bora Airways (51 per cent) and the Brussels Airlines Group (49 per cent). The airline's operational base will be located at Kinshasa's N'Djili Airport. The fleet will consist of two BAe 146 aircraft and will be further augmented with a single Boeing 737-300. Pending all approvals, the airline intends to begin operations at the end of March 2008. Both management and operational resources will be provided by Brussels Airlines and a codesharing agreement with the minority shareholder on the Kinshasa - Brussels route has also been agreed. airDC plans to operate both domestic and regional flights.
Major Airline Alliance new membership update
Air China and Shanghai Airlines became the 18th and 19th Star alliance members in December 2007. Turkish Airlines is due to become a full member by April 2008. EgyptAir has been invited to become a new member (expected before April 2009).
Image: An Icelandair Boeing 757 taking off at London Heathrow. The airline has shown interest in bidding in a tender for Jat Airways. (Jane's/Patrick Allen)