[JohnHarper]

Hippocampus – 24/03/2014 21:43 GMT

IAG has little to worry about. It is rapidly becoming Europe’s pre-eminent airline group and will in time become an iconic global aviation powerhouse.

Thanks to its unparalleled expertise and the decisive and determined leadership of Willie and the team it is the only airline group with proven turnaround expertise.

Merging Air Berlin and Alitalia seems like an absolutely splendid idea and I’m sure all of Etihad’s competitors would happily support and encourage this!”

Well the OP did not mention Europe’s number three and least desirable airline so interesting there was a need to even mention it. As for pre-eminent, thank you for the laugh but third with third class products is nearer the mark.

Air Berlin/Alitalia will have excellent access to Europe’s core market and give EY a big advantage. The fact that LH are squealing about it says they recognise the size of the threat while Willie remains silent.

[AboveTheClouds]

EY, the same way as QR and EK is on race for US now. It’s going to be fun watching them compete with QR going to MIA/PHL/DFW, EY to LAX and EK to ORD this year.

[transtraxman]

It is fascinating to see the battle between the three Gulf airlines. As “AboveTheClouds” says the race to the Americas is on (not just the USA)
-Emirates is still going it alone and marking out its own future.
-Qatar has joined oneworld and has placed its bets on its partners BA, Iberia and American to reach all of the Americas.
-Etihad has decided on a combination of codeshares and equity participation with Aer Lingus (and others) while sharing with Skyteam (AF/KLM – Air Europa – Delta – Virgin Atlantic etc.)

Some of these deals are not done yet but will be soon.

What will happen to the other Gulf airlines — Kuwait , Oman and Gulf Air? Do they have a role or will they disappear?

[AMcWhirter]

Well Etihad is raising US$2 billion for aircraft deliveries in 2014.

http://gulfbusiness.com/2014/03/etihad-airways-raise-2bn-deliveries-2014/#.UzLS0GLV_-s

[JohnHarper]

The more I think about EY the more sense their business models make.

I am beginning to agree, the alliances have had their day, they are too big and service across any of them is far from consistent.

The EK model of dominate long haul has its place and no doubt they are doing very well. I’d like to see them allowed from the UK on to the North Atlantic to give the present incumbents a good shake. East bound they are already cleaning up.

The EY model appears to go beyond that by offering some regional services too. If AZ and AB tie up is there any part of Europe they could not reach? With backing their model could get just about anywhere. That will shake up the LH group, AF/KLM and the number three IAG.

I think we live in interesting times.

[AMcWhirter]

I wonder what’s up at Etihad partner Jet Airways ? It’s changed CEOs three times in nine months.

CEO Nikos Kardassis resigned in June 2013

http://timesofindia.indiatimes.com/business/india-business/Jet-Airways-CEO-Nikos-Kardassis-quits/articleshow/20478474.cms

CEO Gary Toomey quit in January 2014

http://www.travelbizmonitor.com/jet-airways-ceo-gary-kenneth-toomey-quits-22922

and now acting CEO R Gopalakrishnan resigned today March 26 … a little over two months since taking on the job.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/jet-airways-acting-ceo-r-gopalakrishnan-quits-a-little-over-two-months-after-assuming-the-position/articleshow/32671129.cms

[BusinessBabble]

Etihad has got its work cut out if it wants to transform the fortunes Jet, Air Berlin and Alitalia, good luck to them, they’re going to need it.

[MarcusUK]

For sure, Etihad is one of the fastest growing Airlines in the World, considering it started only in 2003. It has a unique method of expansion, including investments in hotels, and a vast amount in shares in many other Airlines, which it steadily increases. As a result, it gains greater influence of that Airline.

I say again, that KLM and AF have a 10 year agreement with Etihad, and they will not be fighting against each other. There is a good co-operation between them, so they will not be affected by Etihad’s expansion plans as mentioned. Etihad have their own lounge in CDG now, and have just two weeks ago when i was in Sydney, opened their own lounge there.

They have cabins and First Class and ground services that not one European Airline comes near to, for a lesser price. A new Larger hub in 2017, (not taking 20 years to build another runway or airport as in the UK!), and unlimited resources.
This is quite different from the Emirates strategy.

I am sure when they do start their US routes, the Americans will be shocked by the luxury compared to the relative coach service provided by many US Airlines.

But for now, they are profitable, have a great income from other investments such as the Etihad Towers, incorporating the Jumeirah 7 Star hotel in Abu Dhabi.
No strikes. No cutbacks. No unhappy employees. No stinging on food or products on board. No squashing in more passengers adding extra seating into aircraft.. And no history of poor employee relations or costs, or scandals such as BA have back over many years.

Clever strategic leadership, and a happy workforce, and brilliant Guest experiences on board and ground services, make them unique and world leaders. This secures their future.

http://www.etihad.com/en-us/about-us/our-story/

And voted best World Airlines for the last 5 years running!

[JohnHarper]

I think we shouldn’t either lose sight of the fact that Etihad has shares in Aer Lingus. I was also told a few days ago that Hogan is eyeing BD regional. Whether he is serious or it’s nostalgia I don’t know.

EI have at least twenty three slot pairs at LHR and in the main utilise A320s on their services to Ireland. I doubt all those services are full and I’m sure efficiencies could be made by again using A321s and reducing the number of services. That could free up a reasonable number of slots to gain access to LHR for all sorts of possibilities.

Who knows, we might see the BD livery painted on an A320 at LHR again before too long.

[AMcWhirter]

MarcusUK – Yes Etihad and AF are already working together. The French media reports today that AF is to train Etihad’s A380 pilots.

As for Air Berlin, latest news from Germany is that the press conference tomorrow (already postponed once) is being put back to April. When it eventually takes place there is expected to be an announcement regarding greater investment by Etihad.

[BusinessBabble]

Norwegian have had to deny rumours they are in talks to take a controlling stake in Air Berlin, I gather Etihad are frustrated at the slow progress of Air Berlin’s restructuring, it all sounds a bit of a disaster.

[CXDiamond]

Good point about EYs shareholding in EI. That could have interesting results in the medium term.

My sense is that EY will be patient over AB, it’s too big a chance to miss out on. The only loser will be OW.

[Hippocampus]

There is absolutely no chance of Etihad being allowed to raid Aer Lingus for its Heathrow slots.

The Irish Government places a lot if value on Aer Lingus’s links with Heathrow and would never let it happen.

Perhaps someone would also care to tot up how much Etihad has spent on Air Berlin and how much cash it has burned?

[JohnHarper]

” Hippocampus – 28/03/2014 09:33 GMT

There is absolutely no chance of Etihad being allowed to raid Aer Lingus for its Heathrow slots.”

Well that has all the credibility of the statements that Qantas would never rescind the JSA with BA.

Etihad is already a significant shareholder in EI and as more shares will be coming on sale the Irish government might not be in a position to stop it happening.

[MarcusUK]

It seems the clear intention of Etihad re Air berlin…?49.9% share? Possible to merge with Alitalia if it does go for them, so it will be completely re-structured.

http://www.travelweekly.co.uk/Articles/2014/03/27/47432/air-berlin-in-recapitalisation-talks.html

And at Aer Lingus, Etihad has increased its share holdings twice in a few weeks. It gives EY access to the US market via the Irish Airline, perhaps why Etihad is doubling its Dublin flight capacity also. With a favourable visit from the Irish PM, The Government who own 25% of the shares (and are up for sale), to Etihad’s CEO some weeks ago, There may well be a greater transfer of shares. Clearly a strategy is midway through here…

http://gulfnews.com/business/aviation/etihad-increases-aer-lingus-stake-for-second-time-in-two-weeks-1.1306139

Etihad Airways also owns nearly 30 percent of airberlin, Europe’s sixth largest carrier and 40 percent of Air Seychelles, and an increasing share in Virgin Australia. Hogan has taken up a seat on the Board at VA!
It is about to enter a new agreement with Singapore Airlines.

And 2 Billion worth of Aircraft tripling its fleet on the way, with A380’s and 787’s coming this year, A brand new Mid field Airport by 2017 as an extension to the Hub at AUH.
A very fast moving Company, with events week by week!
Unlike the progress of any World Airline at this time.

[Author]

Posts