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.
International Airlines Group has selected General Electric CF6-80E1 engines to power the eight Airbus A330 aircraft it currently has on order. According to carrier, the CF6-80E1 engines incorporate the latest technology with improved fuel efficiency, reduced emissions and a longer operating life.
Passenger numbers at International Airlines Group have continued to increase following the merger of British Airways and Spanish flag-carrier Iberia. The airlines jointly carried a total of 4.5 million passengers in June, compared with some 4.4 million in June 2010.
International Airlines Group, the company formed from the merger of British Airways and Iberia, has become the latest carrier to warned that high oil prices could cost it an additional €100m this year, whilst the Japan earthquake and Arabic uprisings have caused a similar dent. However its quarterly figures were otherwise solid with losses narrowing to €47m, down from €273m a year ago.
British Airways is to relaunch its brand later this year following its merger with Iberia. Details of the rebranding will be kept under wraps till autumn, but the national carrier is hoping the campaign will put the airline back on the map as one of the world’s iconic brands.
International Airlines Group – composed of British Airways and Iberia – has confirmed it will reorganise its network to improve services to Latin American and the Middle East. Under the plans, Latin America will become more accessible to British Airways customers and the Middle East will be brought to the doorstep of the Spanish flag-carrier’s travellers.
International Airlines Group has revealed its interest in taking a stake in Japan Airlines, after the Asian carrier emerged from bankruptcy proceedings. IAG was formed earlier this year following the merger of British Airways and Iberia of Spain.
American Airlines, British Airways and Spanish flag-carrier Iberia have signed a long-awaited strategic alliance that will see them cooperate on flights between Europe and North America. The deal had been vigorously opposed by transatlantic rival Virgin Atlantic, which claimed it would create a “monster monopoly”.
Members of the board of directors of International Airlines Group - the holding company formed by the merger of British Airways and Iberia - have been appointed. While many of the new board come from the existing leadership of the partner airlines, John Snow, the former US Treasury secretary, is among the most notable new faces.
British Airways and Iberia have drawn up a shopping list of up to 12 airlines which they hope to buy or merge with once their own tie-up has been completed. Airlines in their sights include Qantas, South African Airways, Finnair and AirAsia in a plan that would create the world’s largest airline.