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Old April 14th, 2012, 07:30 PM   #421
krnboy1009
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Would love to see BA launch route to Seoul. Kinda embarrassing that city of that magnititude cant get BA to go there, a major major airline.

Especially since demand to London is pretty great.
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Old April 14th, 2012, 07:47 PM   #422
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They will be using BMI's slots mainly to Asia so it's possible.
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Old April 14th, 2012, 11:18 PM   #423
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Would make a lot of sense to connect passengers to Japan Airline at ICN.

Or put in code shares with Korean Air or Asiana. Airline Alliances hasnt prevented other airlines from working with airlines of different alliances.
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Old April 16th, 2012, 08:53 AM   #424
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Quote:
Originally Posted by PortoNuts View Post
Yep, BA definitely needs to expand its network into South America.
Hence why IAG is very interested in acquiring TAP, which would definitely begin to rock the Star Alliance stronghold in Europe.
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Old April 16th, 2012, 10:39 AM   #425
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Quote:
Originally Posted by krnboy1009 View Post
Would make a lot of sense to connect passengers to Japan Airline at ICN.

Or put in code shares with Korean Air or Asiana. Airline Alliances hasnt prevented other airlines from working with airlines of different alliances.
BA can also connect with JAL at Tokyo Narita and Tokyo Haneda.

And their partnership is only going to be stronger now they are going to create a joint venture between Europe and Japan. BA will not become partners with other airline then JAL for the Japanese market.
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Old April 16th, 2012, 11:00 PM   #426
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Quote:
Originally Posted by deasine View Post
Hence why IAG is very interested in acquiring TAP, which would definitely begin to rock the Star Alliance stronghold in Europe.
Yes, it would greatly expand the network there, especially into Brazil.
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Old April 16th, 2012, 11:52 PM   #427
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Quote:
Originally Posted by Momo1435 View Post
BA can also connect with JAL at Tokyo Narita and Tokyo Haneda.

And their partnership is only going to be stronger now they are going to create a joint venture between Europe and Japan. BA will not become partners with other airline then JAL for the Japanese market.
Alrighty then. How about Chinese market or Southeast Asia?
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Old April 17th, 2012, 04:59 AM   #428
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With any China strategy, BA needs to push to get a Chinese carrier into Oneworld first.
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Old April 17th, 2012, 05:22 AM   #429
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Cathay Pacific is in One World. Thats it. Dont think theres any other airlines worth bringing in, all the major airlines in China are in an alliance. Eastern and Southern being in Skyteam.
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Old April 17th, 2012, 06:07 AM   #430
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Quote:
Originally Posted by krnboy1009 View Post
Cathay Pacific is in One World. Thats it. Dont think theres any other airlines worth bringing in, all the major airlines in China are in an alliance. Eastern and Southern being in Skyteam.
Well, China is very big and having a second Oneworld hub in, say, Beijing or Shanghai, can vastly improve the connectivity options.
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Old April 17th, 2012, 06:22 AM   #431
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Indeed. Any major airlines in China not in alliances yet?
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Old April 17th, 2012, 11:42 AM   #432
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Hainan Airlines is the biggest airline without any ties to an alliance yet. They also have a hub in Beijing, they would be a perfect candidate for OneWorld. The only big problem is that Hainan is the parent company of Hong Kong Airlines, the up and coming competitor for Cathay in Hong Kong. Other airlines are simply to small to be interesting partner. Pretty much the only other option is to lure either China Eastern or China Southern out of SkyTeam into OneWorld. But that would be the biggest coup in the history of the airline alliances.

As for BA opening a Seoul route, I think it's just a matter of time. Korea is becoming a big travel market on it's own very quickly, in both the business and leisure markets. As can be seen by the growth of both Korean Airlines and Asiana in London. The market should already be big enough for 3 airlines, just from Seoul to London. And with the recent developments that will result in Asiana losing it's code share flights from London to other British cities on BMI it might be a very tactical moment for BA to start this route.
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Old April 17th, 2012, 12:39 PM   #433
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It's a bit ironic MU & CZ decide to go for the same alliance, and I suspect over time, one of them will break out since they're more competitors than partners, trying to grow their business out of Shanghai and Guangzhou respectively.

Hainan Airlines seems quite big these days, and they have a number of smaller affiliate carriers throughout China and Hong Kong, so from a China network perspective they're perfect, but any talk of admitting them into Oneworld will likely meet fierce resistance from Cathay. So it will never work out unfortunately.
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Old April 18th, 2012, 04:54 AM   #434
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Yeah CX and their resistance to cooperate with any of the OW carriers has been pretty strong, and rightfully so. I'm also surprised MU decided to align with CZ, and more surprising how the Mainland gov't didn't try to stop them. But then again, CA was also closely working with CX at the time.

It's clear many other OW carriers have been frustrated with CX. Shortly before, QF was trying to gain more slots to increase capacity to HKG, but CX stepped in and was strongly opposed to it, while increasing its flights to Australia. QF also wanted to work with CX on a LCC for HKG under the Jetstar brand, but was rejected, leading to a recent business cooperation with MU to form Jetstar Hong Kong.

HU originally wanted to enter into oneworld, but of course CX resistance as was discussed previously here, is one of the many reasons they aren't aligned right now. Meanwhile, HU's most recent business strategy seems to be content without an alliance. Having an alliance was critical at the time when carriers like CX, LH, AF, etc. were growing, but in todays time, this doesn't seem to be the case, as the case in gulf-carriers and carriers such as Virgin Australia. The importance is strong business partnerships and carrier acquisition, and this doesn't have to be necessarily represented through alliance anymore.

Of course, in a dream fantasy, I wish CX would leave oneworld and join Star Alliance (being my FFP), but I don't think that will be happening anytime soon.

Back on subject here, and on the topic of acquisition, aside from TAP, it seems that IAG is also interested in acquiring RJ. IAG's developments seem reminiscent of LH and their business carrier acquisition strategy. In some ways, this is a response to the growing success of gulf-state carriers. And to a certain extent, this can also be a way for IAG to increase its presence in Asia, as AMM has the more favorable geography between Europe and Asia.

Quote:
Royal Jordanian Seeks Merger as Gulf Carriers Squeeze Profit
By Tamara Walid - Apr 2, 2012 5:21 AM PT

Royal Jordanian Airlines (RJAL), a member of the British Airways-led Oneworld alliance, said a merger with a larger carrier is inevitable as high fuel prices, competition from local rivals and a sluggish economy squeeze earnings.

While Amman-based Royal Jordanian, founded in 1963 and one of the Middle East’s oldest airlines, has no concrete plans for a transaction, it views consolidation as “a must,” Chief Executive Officer Hussein Dabbas said in an interview.

“We are looking and reviewing options and talking to airlines to see when the time is right for us to do something,” Dabbas said yesterday. “With the pressure we are seeing from mega-carriers around the world, whether European or regional, to continue as we are is going to be a difficult game to follow.”

Airline earnings will likely drop 62 percent to $3 billion this year, equal to a 0.5 percent margin, the International Air Transport Association said last month. Royal Jordanian had a loss of 57.9 million dinars ($82 million) in 2011, versus a 9.6 million dinar year-earlier profit, as traffic was hurt by political unrest in the region and competition from Gulf-based rivals including Emirates, Etihad Airways and Qatar Airways Ltd.

‘Right Synergies’

“It’s a very difficult business environment and if airlines can find the right synergies, they should look at merging their operations and consolidating,” Dabbas said by telephone. “This is the trend of many airlines around the world now.”

Royal Jordanian shares rose as much as 3.5 percent to 59 qirsh before trading at 57 qirsh on the Amman exchange.

The carrier joined Oneworld, which includes AMR Corp. (AMR1)’s American Airlines, in 2007, becoming the first Middle Eastern recruit to one of the three major global groupings.
Willie Walsh, CEO of International Consolidated Airlines Group SA (IAG), the parent of British Airways, has said he’s eager to expand the company and that mergers will most likely happen between existing alliance partners. Dabbas didn’t say if a transaction involving another Oneworld member was most likely.

Among Middle Eastern airlines, Abu Dhabi-based Etihad has the active acquisition policy, increasing its stake in Air Berlin Plc (AB1), Europe’s third-biggest discount operator, to 30 percent and buying 40 percent of Air Seychelles Ltd.

Carriers worldwide are being squeezed as earnings shrink. Barcelona-based Spanair SA collapsed Jan. 27, followed that week by Hungarian national carrier Malev Zrt., while Kingfisher Airlines Ltd. of India may lose its license amid cash shortages and AMR itself has filed for Chapter 11 bankruptcy protection.

Route Review

Royal Jordanian, which scrapped more than 1,300 flights in 2011 due to low demand during the “Arab spring” and euro crisis, has abandoned four routes this year and cut frequencies on others. Dabbas said he’s examining all remaining destinations with a view to either reducing capacity or stimulating traffic.

Still, the carrier is looking at adding services to Algiers, the Ghanaian capital Accra and Lagos in Nigeria, and the CEO said there are signs of improvement in Arab markets as political unrest eases. Passenger numbers grew at least 20 percent in each month of the traditionally slow first quarter, which while unprofitable was “much better” than last year.
“We’re not shrinking but we’re consolidating,” Dabbas said. “Where we see room for improvement we’ll move there, and where we see the move is fruitless and useless we’ll pull out.”

The carrier operates 32 aircraft, mostly from Airbus SAS (EAD), with two A310 wide-bodies to be retired this month and seven of its older A320-series single-aisle jets due to be swapped for newer versions of the same type later this year. The first five of 11 Boeing Co. (BA) 787 on order will arrive in 2014, the CEO said.

Capital Boost

Royal Jordanian is also looking at raising equity over the next two or three years, Dabbas said, adding that many of the company’s problems stem from it being “very under-capitalized.”

The airline has 84.4 million shares outstanding, including a free float of 28.2 million, Bloomberg data. The examination of a capital increase already has investor approval and a decision to go ahead could be taken before the end of 2012, the CEO said.

Royal Jordanian is hedged on about 10 percent of fuel needs for this year, and its budget assumes the cost of crude is $110 a barrel, versus $85 in 2011. That “very conservative” figure resulted from feedback provided by banks, hedging companies and other institutions suggesting the oil price would drop, and even the new number may prove to be too low, Dabbas said.

Brent crude for May settlement was priced at $122.31 a barrel on the ICE Futures Europe exchange as of 12:48 p.m. in London, and has gained almost 9 percent so far this year.
“During the past month the increase was unreal,” he said. “It seems we may have underestimated, but we’ll wait and see. We review prices every day. If the price goes up again maybe we’ll need to increase the expected budget.”

To contact the reporter on this story: Tamara Walid in Dubai at [email protected]
To contact the editor responsible for this story: Chad Thomas at [email protected]
(via Bloomberg)

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Old April 21st, 2012, 08:21 PM   #435
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And the 1st BMI plane will go to the paint shop to be repainted with the BA livery on April 25.

Not surprisingly it's the A320 G-MIDX that currently has the Star Alliance livery.

image hosted on flickr

G-MIDX A320-232 by Irish251, on Flickr


The other A319s & A320 will follow the coming months.

Both BMI A330s will be returned to the lessor in October, that means that we won't see the A330 in BA livery.
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Old April 21st, 2012, 11:15 PM   #436
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Quote:
Originally Posted by hkskyline View Post
It's a bit ironic MU & CZ decide to go for the same alliance, and I suspect over time, one of them will break out since they're more competitors than partners, trying to grow their business out of Shanghai and Guangzhou respectively.

Hainan Airlines seems quite big these days, and they have a number of smaller affiliate carriers throughout China and Hong Kong, so from a China network perspective they're perfect, but any talk of admitting them into Oneworld will likely meet fierce resistance from Cathay. So it will never work out unfortunately.
Arent both of them owned at least partially by the Chinese government?
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Old April 23rd, 2012, 04:41 AM   #437
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Quote:
Originally Posted by krnboy1009 View Post
Arent both of them owned at least partially by the Chinese government?
That applies to all the mainline carriers.
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Old May 3rd, 2012, 03:52 PM   #438
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Quote:
Originally Posted by krnboy1009 View Post
Would love to see BA launch route to Seoul. Kinda embarrassing that city of that magnititude cant get BA to go there, a major major airline.

Especially since demand to London is pretty great.
Look where BA will be flying next.
Quote:
BA returns to Seoul

British Airways is to commence six times weekly flights to Seoul from December after a gap of 14 years. The flights will commence December 2, 2012 using a four class (economy, premium economy, business and first) B777 aircraft.

The schedule for British Airways’ new flight to Seoul is:

BA017 | Heathrow | Seoul | 13:00 | 08:55 | Mon, Tues, Thurs, Fri, Sat, Sun

BA018 | Seoul | Heathrow | 10:45 | 14:00 | Mon, Tues, Wed, Fri, Sat, Sun

full article:
http://www.businesstraveller.com/new...turns-to-seoul
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Old May 3rd, 2012, 09:17 PM   #439
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Eventually the rumor becomes reality I guess. It has been heavily rumored for years now.


It was only a matter of time. didnt think it would happen this year though, didnt Branson appeal against the BA and BMI merging?

Last edited by krnboy1009; May 3rd, 2012 at 09:32 PM.
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Old June 20th, 2012, 08:28 AM   #440
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BA's new advert: 777 flying through London
(WCARN.com, June 19)


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With 38 days until the start of the London 2012 Olympic Games, British Airways, official airline partner of the games, has launched a new television advert promoting its "home advantage."


The airline is encouraging UK residents to not fly for a change: "Don't fly, support Team GB" is the slogan.

The advert shows a Boeing 777 taxiing from Heathrow through the streets of London to the Olympic stadium in east London.
view the ad: http://www.wcarn.com/cache/news/19/19850.html
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