Feature: Airline Update
in the skies Revolution
“A
recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you’ve lost your trousers – you’re in the airline business.” So said Sir Adam Thomson, founder and chairman of British Caledonian, before it was taken over by British Airways in the late 1980s. His thoughts will resonate down the years, finding an echo in those involved in today’s airline business, where the challenges tumble over each other in a scenario reminiscent of Alice in Wonderland in its quirks and complexities. In today’s competitive environment, exacerbated by rising oil prices and government-imposed taxes, airlines must look at long-term strategies to survive, with consolidation or acquisition often the name of the game. “Leading the field right now,” says Tony Berry, industry and fare distribution director for the Hogg Robinson Group (HRG), “is IAG (International Airline Group), with its recent acquisition of bmi".
Qantas has found a new partner in Emirates in a bid to meet the onslaught of Middle Eastern and Asian airlines in Australia …and Etihad Airways has bought a stake in Virgin
Airlines large and small are investing in new and greener product
Australia, Aer Lingus and Air Seychelles in a bid to compete with [fellow Gulf carriers] Emirates and Qatar Airways.
“Looking to the future, the Latin American and Asia/Pacific regions are expected to be leading the way with consolidation and structural change in the next few years. In fact, Chile’s LAN recently took over Brazil’s TAM Airlines to create a new aviation giant. Consolidation is changing the face of the airline industry,” concludes Berry. Qantas also launched a joint business venture with American Airlines on the transpacific route between the US and Australia.
ANA and United Airlines – the latter merging with Continental two years ago – are in partnership between Japan and the US. ANA is also planning a strategic joint venture with Lufthansa between Japan and Europe, a move mirrored by British Airways and a restructured Japan Air Lines in early 2012, when they submitted applications to both the Japanese government and to the EU to become partners on the link.
In addition, American Airlines is rumoured to be seeking a merger with US Airways, and Ryanair has been pulling out all the stops to buy Aer Lingus.
While the passenger-carrying days of the
Airlines continue to invest in new product and greener aircraft amid a murky economic outlook. UK-based Colin Ellson charts these turbulent times for the aviation industry
Dreamliner are still in their infancy, the huge bulk of the A380, the world’s largest commercial jet, is becoming an increasingly common sight in skies around the globe. It is already in service with the likes of Singapore Airlines, Emirates, Lufthansa, Air France and Qantas and next year will make its long-awaited debut in British Airways colours.
The airline has ordered 12 Super Jumbos, which together with the 24 Boeing 787s on order, will replace 34 of the flag carrier’s existing long-haul fleet. In preparation for both aircraft, BA has completed a multi-million pound redevelopment of its Heathrow engineering base, with the roof raised to accommodate the A380’s 24-metre-high tailfin.
No details of what passengers will enjoy aboard the BA Super Jumbos or the routes they will fly have yet been released – unless you are riveted by the fact that one double decker’s interior has space for 35 million ping-pong balls. The A380s are part of the airline’s £5 billion investment in new aircraft, smarter cabins, elegant lounges and fresh new technologies over the next five years to make life more comfortable for BA customers in the air and on the ground.
As they speculate on the facilities the big bird
www.onboardhospitality.com 27
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