Lima J Chavez International Airport

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.

Key decisions loom in 2012 for Avianca-TACA as integration effort nears completion

The spotlight in Latin America this year will primarily be shone on LAN and TAM as the two airline groups complete their landmark merger and begin the integration process. But it is also a key year for Avianca-TACA, which completed their merger in early 2010 and has completed about 90% of its integration process.

The integration of Avianca and TACA will be wrapped up this year as the carrier formally joins the Star Alliance, completing two major milestones for the fast-expanding airline group. Several major decisions also loom for the group in 2012 related to its corporate structure, branding and fleet.

Structurally, a decision will likely be made by the end of this year on whether to bring Avianca Brazil into the publicly traded holding company Avianca-TACA. The Brazilian carrier is still owned by the Synergy Group, the holding company controlled by the Efromovich family which also owned Avianca prior to its merger with TACA (the Efromovich family now has a majority share in Avianca-TACA Holding). As a result, Avianca Brazil remains separate although it has a co-branding arrangement with Colombia-based Avianca.

Now it’s about fuel – again

In 2007-2008 the airlines most feared the rising cost of fuel and, especially in the US, used the expense to dramatically cut service, scale back operations, retire aircraft and reduce capacity. But the positive effects of those actions were almost immediately negated by the recession, which brought a whole new set of problems.

Frankfurt Airport establishes new traffic records in May-2010

Fraport has reported a further stabilisation of the growth trend last month, with Frankfurt Airport (FRA) registering new record levels for both passengers and airfreight in May-2010 (beating previous records established in May-2008). FRA handled 4.76 million passengers and over 200,000 metric tons of airfreight in May-2010, up 7.1% and 39.7% year-on-year.

Airline alliances in Latin America provoking major changes. How TAM helps Star

Despite strong growth in several markets, Latin America’s aviation scene is in flux—perhaps more so than any other geographic region on the globe. Political and economic instability have been rampant across the region and continue to be a part of the 21st century landscape. The latest difficulties have been manifest as political unrest in Venezuela and continuing economic turmoil in Argentina, to name just two.