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So, December 2008 it is... [:w]
MORE impressive (IF it's genuine) is the photograph of the plane against the moon!
So, December 2008 it is... [:w]
MORE impressive (IF it's genuine) is the photograph of the plane against the moon!
As I hinted at in the thread on the NW and DL merger it is clear that the players in the industry are going down two routes.
1. Merge with another carrier that compliments your services rather than replicates them. Hence DL and NW merging, possibility of LH or VS acquiring BD, AF/KLM love affair with AZ and so on. With news today that BA is in talks with a Spanish bank who own a substantial number of shares in IB, it looks like BA will place its money with IB for the time being.
2. Create a super airline which will be so big and mighty no one would dare take it over. This is exactly what the Royals in the Middle East are doing. EK and to a lesser extent QR and EY are doing exactly this.
What is clear is that no European airline can do the latter. The position of Europe, geographically, in the world does not allow for a spoke network as is operated by EK currently (of course 20 years ago it did). Flybe have been very sly, what was a smallish operation some 10 years ago is rapidly becoming a major player in the short haul and domestic network, thanks to some clever investment and acquisitions.
With increasing competition from the super airlines (and yes people do fly via DXB to LOS if it is £250 cheaper), rising oil prices, increased competition for slots, rising security costs et al, something is about to give. The industry has seen 6 carriers fold in the last fortnight, I am sure the likes of SRB, SMB, the CEO of SN Brussels, Italian government, Iberia's board would much prefre to survive this than go under. Medium sized European carriers are becoming very attractive takeover options for the bigger carriers.
The only question is, which airline is about to admit defeat and be taken over first. Time will tell.
1. Merge with another carrier that compliments your services rather than replicates them. Hence DL and NW merging, possibility of LH or VS acquiring BD, AF/KLM love affair with AZ and so on. With news today that BA is in talks with a Spanish bank who own a substantial number of shares in IB, it looks like BA will place its money with IB for the time being.
2. Create a super airline which will be so big and mighty no one would dare take it over. This is exactly what the Royals in the Middle East are doing. EK and to a lesser extent QR and EY are doing exactly this.
What is clear is that no European airline can do the latter. The position of Europe, geographically, in the world does not allow for a spoke network as is operated by EK currently (of course 20 years ago it did). Flybe have been very sly, what was a smallish operation some 10 years ago is rapidly becoming a major player in the short haul and domestic network, thanks to some clever investment and acquisitions.
With increasing competition from the super airlines (and yes people do fly via DXB to LOS if it is £250 cheaper), rising oil prices, increased competition for slots, rising security costs et al, something is about to give. The industry has seen 6 carriers fold in the last fortnight, I am sure the likes of SRB, SMB, the CEO of SN Brussels, Italian government, Iberia's board would much prefre to survive this than go under. Medium sized European carriers are becoming very attractive takeover options for the bigger carriers.
The only question is, which airline is about to admit defeat and be taken over first. Time will tell.
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