Aerolineas Argentinas

Aeromexico continues to build partnerships outside SkyTeam

Aeromexico’s new codeshare agreement with Brazilian carrier TAM represents the second agreement Mexico’s largest carrier has signed with a non-SkyTeam carrier in the last two months. The partnerships reflect the need for both Star and SkyTeam carriers to access key markets in Latin and Central America that are not available through their respective alliance partners.

The Avianca-TACA relationship with Aeromexico, announced in Mar-2012, was surprising given that the Kriete family, which is a main shareholder in Avianca-TACA, is also a major holder in Aeromexico’s competitor Volaris. But Aeromexico has been pursuing a tie-up with Colombia’s largest carrier, Avianca, since it started Mexico City-Bogota flights in 2010. The chance was brushed aside once Avianca-TACA opted to join the Star Alliance, but now the agreement will include more connections than just Bogota as Avianca-TACA cited an ability to partner with Aeromexico on flights to Central and South America during the second half of this year.

Aerolineas Argentinas continues to struggle as government protection from competition increases

Argentina’s aviation market has taken another step backwards as the country’s Government continues to come up with new measures aimed at protecting struggling flag carrier Aerolineas Argentinas. Aerolineas, which has not yet completed the restructuring it started three years ago after the carrier was renationalised, faces another challenging year while Latin America’s other leading carriers prosper without any government subsidies or protection.

In the latest example of protectionism, Argentinean civil aviation authorities last month decided to revoke LAN Argentina’s permits to operate international flights from Buenos Aires’ downtown airport, Aeroparque Jorge Newbery. LAN is vehemently protesting the decision on the grounds the Chile-based airline group, which has had an affiliate in Argentina since 2005, is being unfairly discriminated against. LAN currently operates two important international business routes from Aeroparque, Santiago and Sao Paulo Guarulhos.

Aerolineas Argentinas focuses on fixing highly unprofitable long-haul operation

Aerolineas Argentinas plans to pursue further capacity and fleet expansion as the renationalised carrier enters the next phase of its transformation. Aerolineas, however, has had to push back expectations for returning to profitability until at least 2H2012. With a highly unprofitable international operation and a roughly break-even domestic business, Aerolineas now stands alone in Latin America as the only loss-making major carrier in the region.

Qatar Airways declares profit breakthrough, roll on IPO

Qatar Airways’ CEO Akbar Al Baker announced on 20-Dec-2010 that Qatar Airways is on track to declare “a very hefty profit” this year, clearing the way for an IPO. The CEO stated he is "pretty confident" the carrier will launch an IPO in early 2012, after achieving three consecutive years of profitability.