Start-up Airlines

Bodi Group to launch a new domestic carrier for Mongolia – Mongolian Airlines

Bodi Group, one of the largest corporate conglomerates in Mongolia, is launching Mongolian Airlines, a new domestic airline in Mongolia. The carrier, which appears to be affiliated with MIAT Mongolian Airlines, will compete with former MIAT subsidiary company Aero Mongolia (owned by Newcom Group) and Eznis Airways (owned by Monnis Group). According to reports in the local media, an agreement on the establishment of the airline has been signed between Bodi Group and MIAT, enabling Bodi to ultimately benefit from the planned privatisation of MIAT in coming years. 

Why Tony Fernandes' new possible premium airline isn't a competitor to Qantas' Asian premium carrier

It is tempting to portray Tony Fernandes's possible new premium airline as being in contention with Asia's only other planned premium carrier, the one from Qantas, an airline that has ties to Mr Fernandes. But the premium market in Asia is nascent, and based on the few known details of the carriers, they are pitched at different segments. A closer look is in order.

IAG to establish new LCC subsidiary Iberia Express

International Airlines Group (IAG), the parent company of British Airways and Iberia, will launch a new subsidiary called Iberia Express from summer 2012 in a bid to boost margins on Spanish short- and medium-haul services. Iberia Express is being established to provide a more competitive offering in the Spanish domestic and European market amid rising challenges from the high-speed rail network and LCCs, notably Ryanair and easyJet, which both have bases at Madrid Barajas and Barcelona El Prat.

Ryanair and easyJet operate large and growing domestic and European networks, and have overtaken Iberia as the two largest operators of services between Europe and Spain. Iberia has found it a challenge to compete with these carriers in light of its high flight crew costs and lower productivity.

The LCC strategy is also part of efforts by IAG to reduce the carrier’s cost base and return Iberia to profitability.

Tibet Airlines preparing for Jul-2011 launch; CAAC sets limit of three new airline approvals p/a

Tibet Airlines, Tibet’s first airline, on 20-Jun-2011 received its public air carrier's licence from CAAC, after receiving approval from the aviation authority in Mar-2010. Tibet Airlines will be the first and only airline based in Lhasa when it launches operations next month and will benefit from the booming Tibet market.

Air Canada considering launch of new leisure LCC as competition in leisure market intensifies

Air Canada is drawing up a business plan to launch a new leisure LCC as a competitive response to its low cost rivals in the Canadian market, according to reports in the Globe and Mail. LCCs, led by WestJet and including Porter Airlines, Air Transat and Sunwing Vacations, have been growing at a faster pace than Air Canada in recent years, eroding the market share of the nation’s largest carrier. Air Canada has launched two other LCCs, Tango and Zip, in the past, both of which operated for less than two years.

The spread of LCC operations around the world

50 LCCs existed in some form or other before 2000. Not all were LCCs at the time but have since been restructured or redeveloped, sometimes from shell companies, into LCC format. Fourteen of these have since closed, leaving 36 survivors.

New entrants continue to be launched, despite challenging economic environment

Start-up carriers are continuing to enter the market in 2009, taking advantage of lower fuel and aircraft prices, as well as capacity reductions by rivals in some markets.