While perhaps the most global of industries, aviation has failed to create a truly global airline. But with rising fuel costs, falling prices and natural disasters all taking a toll, the crunch for legacy carriers across the globe is fast approaching. Here Breaking Travel News looks at the various strategies open to airlines as they seek to survive.
The European Commission has granted unconditional approval to the proposed merger of United Airlines and Continental Airlines. U.S. authorities will need to grant final approval for the creation of what would become the world’s largest airline.
The controversial transatlantic tie-up between American Airlines, British Airways and Iberia has won final approval from the US Department of Transport, some 14 years after it was first proposed. The three carriers will now be able to jointly set prices, sell tickets and schedule flights through their Oneworld alliance.
The European Commission has cleared for take-off the three-way transatlantic tie-up between American Airlines, British Airways and Iberia. The airlines are expected to start co-ordinating schedules and pricing from the autumn, subject to final approval from the US Department of Transport.
British Airways and Iberia have formally agreed upon their corporate structure partnership, in the latest sign that the merger of the two flag carriers is on schedule for completion by this December.
Delta customers gain enhanced connectivity, frequent flyer benefits when traveling to and from Romania
Sir Richard Branson has hinted that merging Virgin Atlantic with another carrier might be the only way to allow his airline to compete with the likes of United, Lufthansa and British Airways.
British Airways and Iberia have sealed their long-awaited merger, which will see the two flag carriers integrate operations by the end of the year. They are expected to save up to £350 million annually from the £5bn deal, and will trade as a holding company called International Airlines Group.
British Airways’ merger with Iberia will not take place in the first quarter of this year as planned because of “technical issues”. However BA has quashed speculation that this was due to the disruption caused by the cabin crew strikes.
Air China has revealed plans to take over Shenzhen Airlines in a move that would bring the majority of China’s aviation sector under the control of just three state-controlled carriers. The $100m deal would also strengthen the flag carrier’s foothold in the south of China.
Russia’s troubled aviation market is poised for a radical overhaul after the government approved plans to merge six state-owned airlines into its flagship carrier Aeroflot. The green light from Prime Minister Vladimir Putin will boost Aeroflot’s share of the domestic market from 15 per cent to up to 35 per cent.
The proposed transatlantic venture between British Airways, American Airlines and Iberia has moved closer to securing regulatory approval from the European Commission.