Spanair

Europe loses four airlines in an unhappy start to 2012

As the economic noose tightens around European airlines, the industry's ranks look set to thin this year. Over late 2011 and the first month of 2012, the industry has witnessed the collapse of four small European carriers as well as the announcement of a merger between Wind Jet and Blue Panorama Airlines by Alitalia. For the time being, it is predominantly smaller, lower capitalised airlines that have failed. The four failed carriers deploy only around 217,000 weekly seats or 0.6% of total European system capacity.

However, the collapses, which follow more than 30 European airline failures over the 2008/09 economic crisis, could in the coming months foreshadow the demise of further carriers or further consolidation, with a number of financially weak carriers operating in the European market. While all but one of the airlines affected so far in 2012 have been based in Continental Europe, there are several weak carriers in Eastern Europe urgently seeking further funding and/or new investors in the near term. Three of the collapsed carriers have been privately owned, but last week's collapse of Spanair shows governments may be willing to let state-supported carriers dither away.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.

LAN-TAM merger opens South American markets to bids from Star, oneworld, SkyTeam; ATI again a factor

This week’s proposed combination of Brazil’s TAM and the multi-hub LAN is making waves across the industry. In creating what will be a world force, it would also create a regional dominance unprecedented in any other geography. The cross-alliance merger of LAN (oneworld) and TAM (Star) also raises major issues for each of the global alliance; and the opportunities for negotiating a powerful position in one of the global alliances could become a key part of the LAN-TAM merger moves. But then the role of anti-trust immunity enters from stage left…

‘Old faithful’ Monarch puts its faith in Spain

The British scheduled and charter airline Monarch has announced its winter flying programme for 2010-11, with plans to add frequencies on existing key scheduled routes and add new services. Monarch has established its scheduled division, Monarch Scheduled, previously known as Gold Crown, as one of the major operators of flights to the Mediterranean despite having adjusted its service offer in accordance with low-cost competition, much to the annoyance of some of its original clients.