Global aviation in Europe is very much controlled by the big three European airline groups Air France-KLM, IAG, and Lufthansa Group. These airline groups often try to buy up independent airlines, both to further their strategic interests, and to prevent competitors from doing the same.
Continue reading: Air France-KLM Wants To Invest In Air Europa, Makes Offer
Share your questions, experiences, and thoughts below.
You haven't explained why you think this will be better for consumers. UX are currently selling business class tickets Germany to Ecuador for €1700 return all in. Do you think that AF will be inclined to offer prices that are lower or higher than that?
Obviously, less competition would result in higher fares. Although fares to Ecuador seem to be the lowest, to other countries in Latin America they already charge higher fares, now.
They do seem to have an old-fashioned approach to revenue management, at least if you exclude online upgrades.
I know they work with tour operators to send people to the Dominican Republic etc and for South America I imagine they just try to get the most out of Y flyers on VFR trips and leave the big seats available for those on corporate contracts (they're the most convenient choice for a lot of people travelling to/from places such as Paraguay, Cordoba etc), using any slack for opups, paid online upgrades, award tickets etc.
Between UX & TP, I expect AFKL gets one and LH gets the other. Home team advantage to the same alliances, but a swap is also possible.
Getting the TA JV will be a skosh harder b/c of scope - the Euro airlines will want to exclude flights to destinations South of the Rio Grande, where the US counterparts will insist they be included.
I think they use all three main terminals, which are uninspiring but efficient and easy to navigate...and certainly better than having to take the train to T4S.
I just don't see what the play is. Where do you position Air Europa? KLM is a mess. Even in business-class. SAS doesn't (yet) have intra-Europe business-class. I guess you could make Air Europa a no-frills, cheap transatlantic airline like TAP Air Portugal. Take advantage of KLM's extensive UK service to give British Airways a run for the money. Make Air France the premium airline. But then what do you do with SAS?
It is also possible IAG could go after TP but I do think AF KL will win for Air Europa.
Amsterdam Paris Copenhagen and Madrid would be quite a wall across western continental Europe supplemented by London
Now that ITA, Scandinavian, TAP, Air Europa and Air Baltic are being absorbed there’s only Finnair, LOT, Aegean, Icelandair and Condor left as independent airlines other than the very minor players and LCCs.
I fly UX between Europe and South America one to three round trips per year. I used to be an Iberia loyalist but Air Europa offers significantly better value. Decent business class for about 30% less. Given that I used to be a flying blue platinum member I wouldn’t mind a partnership that haves me flying AF or KL occasionally, I just want UX to stay competitive with their prices.
The T123 terminal(s) will be refurbished by 2030, and a new central building will be constructed for check-in, passport controls, and baggage collection. This has already been published, and work will probably begin next year.
SAS already dominates the Norway, Denmark and Sweden, but that's a small market. SAS and KLM are both low-end airlines. SAS so much so that they don't have intra-Europe business-class for connecting long-haul passengers. That is supposed to launch this summer. But it's long overdue.
UX to AFKL, TP to LHG and IB to IAG is the best case for Europe competition watchdogs: all 3 alliances would have a decently placed Central and South America gateway.
It seems LHG would be the largest beneficiary considering they have nothing west of FRA currently.
Anyone has clues whether it's better to share MAD with IB or having to expand from LIS ? Portugal has massive diaspora in Europe so the network is massive but yields are probably poor with massive LCC there. I wonder how much space is left for long haul expansion ? Seems the runway situation is not great.
News articles have also indicated that AF/KLM is interested in acquiring part of TAP.
https://simpleflying.com/confirmed-air-france-klm-bid-tap-air-portugal/
Looking at the pricing, The LH deal values Air Europa higher than AF-KLM does - i mean €240m for 25% is better than €300m for 51%. While Tap is very attractive, it is very dominant in Brazil but it covers less of Latin America in general than Air Europa does.
Also, Air Europa is leasing a plane to Brussels Airline apparently as a test for the Lufthansa group to see how it operates.
You haven't explained why you think this will be better for consumers. UX are currently selling business class tickets Germany to Ecuador for €1700 return all in. Do you think that AF will be inclined to offer prices that are lower or higher than that?
Obviously, less competition would result in higher fares. Although fares to Ecuador seem to be the lowest, to other countries in Latin America they already charge higher fares, now.
They do seem to have an old-fashioned approach to revenue management, at least if you exclude online upgrades.
I know they work with tour operators to send people to the Dominican Republic etc and for South America I imagine they just try to get the most out of Y flyers on VFR trips and leave the big seats available for those on corporate contracts (they're the most convenient choice for a lot of people travelling to/from places such as Paraguay, Cordoba etc), using any slack for opups, paid online upgrades, award tickets etc.
Between UX & TP, I expect AFKL gets one and LH gets the other. Home team advantage to the same alliances, but a swap is also possible.
Getting the TA JV will be a skosh harder b/c of scope - the Euro airlines will want to exclude flights to destinations South of the Rio Grande, where the US counterparts will insist they be included.
News articles have also indicated that AF/KLM is interested in acquiring part of TAP.
https://simpleflying.com/confirmed-air-france-klm-bid-tap-air-portugal/
Air Europa is crummy airline that uses a terrible terminal in Madrid.
I think they use all three main terminals, which are uninspiring but efficient and easy to navigate...and certainly better than having to take the train to T4S.
The T123 terminal(s) will be refurbished by 2030, and a new central building will be constructed for check-in, passport controls, and baggage collection. This has already been published, and work will probably begin next year.
I just don't see what the play is. Where do you position Air Europa? KLM is a mess. Even in business-class. SAS doesn't (yet) have intra-Europe business-class. I guess you could make Air Europa a no-frills, cheap transatlantic airline like TAP Air Portugal. Take advantage of KLM's extensive UK service to give British Airways a run for the money. Make Air France the premium airline. But then what do you do with SAS?
It is also possible IAG could go after TP but I do think AF KL will win for Air Europa.
Amsterdam Paris Copenhagen and Madrid would be quite a wall across western continental Europe supplemented by London
Now that ITA, Scandinavian, TAP, Air Europa and Air Baltic are being absorbed there’s only Finnair, LOT, Aegean, Icelandair and Condor left as independent airlines other than the very minor players and LCCs.
I fly UX between Europe and South America one to three round trips per year. I used to be an Iberia loyalist but Air Europa offers significantly better value. Decent business class for about 30% less. Given that I used to be a flying blue platinum member I wouldn’t mind a partnership that haves me flying AF or KL occasionally, I just want UX to stay competitive with their prices.
What do you do with SAS? You dominate Scandinavia.
SAS already dominates the Norway, Denmark and Sweden, but that's a small market. SAS and KLM are both low-end airlines. SAS so much so that they don't have intra-Europe business-class for connecting long-haul passengers. That is supposed to launch this summer. But it's long overdue.
UX to AFKL, TP to LHG and IB to IAG is the best case for Europe competition watchdogs: all 3 alliances would have a decently placed Central and South America gateway.
It seems LHG would be the largest beneficiary considering they have nothing west of FRA currently.
Anyone has clues whether it's better to share MAD with IB or having to expand from LIS ? Portugal has massive diaspora in Europe so the network is massive but yields are probably poor with massive LCC there. I wonder how much space is left for long haul expansion ? Seems the runway situation is not great.
Looking at the pricing, The LH deal values Air Europa higher than AF-KLM does - i mean €240m for 25% is better than €300m for 51%. While Tap is very attractive, it is very dominant in Brazil but it covers less of Latin America in general than Air Europa does.
Also, Air Europa is leasing a plane to Brussels Airline apparently as a test for the Lufthansa group to see how it operates.