The quiet rebirth of Iberia

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The quiet rebirth of Iberia

Iberia a Europe-Latin America specialist Iberia’s employee cost falls from 30% of revenue in 2012 to 24.2% Iberia needs A350-1000 more than BA for hot & high missions Iberia’s Madrid hub well placed to capture North Asia-LatAm spillover demand from Heathrow Iberia’s Madrid routings on North Asia-LatAm competitive with Middle Eastern hubs Madrid commands 60.3% & […]

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Qatar Airways nets a prized catch, expanding westwards

It may seem somewhat crazy, but it is definitely not surprising in today’s aviation landscape of fast changing and crisscrossed relationships, some of them making most unlikely bedfellows. The ends justify the means. Qatar Airways has acquired a 10% stake in International Airlines Group (IAG), better known as the owner of British Airways (BA) and […]

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Is Qantas robbing Peter to pay Paul?

Qantas thinks it has found a way to respond to the pressure to reduce airfares in light of the hefty fall in the oil price (“A conscionable call as oil price plummets: Will airlines reduce airfares?“, 26th Jan, 15). Logically, and to be expected, fuel surcharge should go down. So Qantas will axe fuel surcharges […]

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A conscionable call as oil price plummets: Will airlines reduce airfares?

As the oil price plummets – some 55% since June last year – the question top most in the mind of the consumer must be: Will airlines reduce airfares? Many of them have chosen to be silent on the subject, the reason being that the historical volatility of the market is such that the trend can […]

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Falling fuel prices: How good is the news?

The slump in the oil price in recent weeks should spell good news for airlines, dipping to a four-year low. It is today some 30% below the price in June. Yet do not be too quick to bet on falling airfare. But when no less a person than director general of the International Air Transport […]

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easyJet rides on Air France’s troubles

Air France should feel chastened by easyJet’s jubilant admission that the strike by French pilots had brought it a windfall. The industrial action has boosted the budget carrier’s revenue by about £5 million (US$5.35 million), raising hope of the financial year ending September 30 achieving better pre-tax profit of between £575-580 million, previously expected to […]

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Air France dispute reflects a divisive & unsure industry

After two weeks, the dispute between Air France and the pilots’ union SNPL was finally called off. One may be tempted to ask: Who wins, who loses? That aside, the dispute clearly reflects not only a divisive industry but also an unsure one trapped without clear strategies in place in the throes of uncertainty. The […]

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The state of the airline industry

In his keynote address at the recent annual general meeting (AGM) of the International Air Transport Association (IATA) held in Doha, IATA director-general (DG) and chief executive Tony Tyler said: “Our financial performance does not yet match the value that we deliver.” No one will deny the importance of the airline business in global connectivity […]

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IAG’s performance augurs well for industry

While Ryanair paints a gloomy picture of the future of aviation out of London, warning that the market will soften resulting in dip of profits despite expected falls in fares, British Airways (BA) all but dispels that as a myth. International Airlines Group (IAG) chief executive Willie Walsh even went as far as suggesting that it was a publicity ploy

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Move over, Ryanair, the new low-cost model is Jetstar

Reporting a net profit of €602 million (US$831 million) for the six months to end-September and despite an increase of 1% year-on-year, Ryanair yet again warned that profits are likely to fall for the full year. The airline reiterated an earlier exhortation about the numbers dipping as low as €500 million compared to last year’s €570 million, thus negating the

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