ALLIANCES,

European regulators have told [Vous devez être inscrit et connecté pour voir ce lien], American Airlines and Spain’s [Vous devez être inscrit et connecté pour voir ce lien] that they could be forced to give up valuable take-off and landing slots if they want their long-planned transatlantic tie-up to go ahead.
According to documents seen by the Financial Times, the European Commission says that the agreement the three airlines signed last year is “likely to result in appreciable competitive harm” on seven Europe/US routes.

Brussels says it “envisages issuing a decision finding that the series of agreements signed have been in breach” of competition laws and would order the “infringements” ended. “Remedies may include . . . the transfer of airport slots” to other carriers, it says.
The routes in question are the lucrative London-New York services, where authorities say the planned alliance would give BA and AA enough power to raise first and business-class fares. Brussels also has concerns about services between London and Dallas, Boston, Miami and Chicago, as well as the Madrid-Miami and Madrid-Chicago routes.
In the case of the Madrid-Miami service, the authorities dismiss arguments by Iberia that it would consider scrapping its non-stop services to the US city if the joint venture did not go ahead. “Iberia and AA have each been operating non-stop services on this route since before 1997, without any in-depth co-operation,” they say.

Brussels’ concerns are set out in a confidential “statement of objections” sent three weeks ago to the airlines, which have been given a month to respond.
The carriers, which belong to the OneWorld alliance, have also sought antitrust immunity from the US Department of Transportation to allow them to coordinate fares and schedules without fear of penalties.
The DoT, which is set to issue its preliminary response this week, has already granted such immunity to Star and SkyTeam, OneWorld’s rival alliances.

The planned tie-up between BA, AA and Iberia would significantly deepen the OneWorld alliance by permitting co-ordinated flight schedules, co-operation on fares and marketing and shared revenues.

AA said: “We look forward to the opportunity to address and overcome the EU’s concerns.”
BA could not be immediately reached for comment. Shares in the airline were 2.4 per cent lower to 204.8p, the biggest fallers on London’s FTSE 100 index, while in Madrid Iberia shares were down 2.5 per cent at €2.07.

Virgin Atlantic Airways has submitted its written response to the U.S. Department of Transportation in relation to the Department of Justice's comments in December on the proposed British Airways/ American Airlines tie-up. The DOJ expressed a number of grave concerns over the competitive and consumer harms of the proposed BA/AA alliance. This is not the first time a competition authority has set out concerns regarding the proposals. In October of 2009, the European Commission issued its Statement of Objections and stated that the proposed alliance "may be in breach of European rules on restrictive business practices."
(Logo: [Vous devez être inscrit et connecté pour voir ce lien] )

The Department of Justice said in its submission that the "Applicants' proposed alliance would significantly harm competition on the most significant transatlantic routes" and that "the likely magnitude and value of any of these alleged benefits is overstated."

Virgin Atlantic's response to the DOT states "Virgin Atlantic agrees with the concerns the DOJ has raised about the competitive and consumer harms the proposed link up would cause if the Department was to grant ATI ... Virgin Atlantic urges the Department to deny the application outright."

Sir Richard Branson, President of Virgin Atlantic, said;
"Now two competition authorities have voiced their concerns over the proposed BA/AA alliance, we renew our call on the regulators to reject these anti-competitive proposals.

"The competition authorities have thoroughly scrutinized the proposals in an effort to safeguard competition in the interests of consumers. Having done so, both the authorities on opposite sides of the Atlantic have cited concerns. These concerns are absolutely justified and the alliance should not be given the go-ahead."
The U.S. Department of Justice concerns included that the proposed alliance would result in competitive harm on certain transatlantic routes serving 2.5m passengers every year and that competitive entry at Heathrow is unlikely to prevent adverse competitive effects. The DOJ recommends that, "given the risk of significant harm, any grant of immunity should be limited to protect competition."

For further information please contact the Virgin Atlantic U.S. Press Office at 203-750-2570 or log onto [Vous devez être inscrit et connecté pour voir ce lien].

Notes to Editors
The key points of Virgin Atlantic's opposition to the proposed merger include:

• BA/AA will use their exemption from competition laws and their overwhelming dominance to destroy competition, raise prices and reduce choice
  
• BA/AA will have a monopoly or be dominant on some of the busiest and most profitable routes between the US and Heathrow.
  
• In terms of capacity BA and AA would control:
  
  
  
  • LHR-BOS 80%
    
  • LHR-DFW 100%
    
  • LHR-JFK 62%
    
  • LHR-LAX 48%
    
  • LHR-MIA 70%
    
  • LHR-ORD 68%
    
  
  
• Heathrow Airport is unique in Europe. Unlike other European hubs, Heathrow is virtually full, preventing competitors from challenging the dominance of BA and AA. BA/AA would have 47% of slots at Heathrow.
  

SOURCE Virgin Atlantic Airways

PR Newswire

American Airlines and British Airways believe US government recommendations for them to divest flights in certain transatlantic markets to secure permission to deepen their ties are unworkable and unnecessary.

The carriers said late on Monday in a filing with transportation regulators that antitrust enforcers at the Justice Department had failed to prove in a challenge to the proposal last month that a stronger alliance would lead to fare increases and fewer choices for consumers.

"The proposed alliance should be approved and immunised without delay," the carriers said in their filing with the Transportation Department.

The transportation agency is expected to decide soon whether to grant a waiver, or immunity, from antitrust law to the Oneworld alliance led by American and British Airways.

Officials from the Transportation and Justice departments have refrained from public comment during their review.
US antitrust immunity waivers for airlines are routinely granted, often with conditions requiring divestments to ensure that routes remain competitive and fares do not increase.

Justice Department officials said the proposed alliance would give Oneworld an unfair advantage on six transatlantic routes, five of which serve London.

Access to Heathrow airport has been a sticking point for years for US regulators and was the reason two previous immunity attempts by American and British Airways foundered.

American and British Airways, which currently operate a code-share marketing agreement, launched their third attempt for immunity in 2008 after the US and Europe reached an agreement to further open Atlantic service, including more flights at Heathrow.
They contend the newly liberalised environment would remedy previous concerns about market dominance and allow Oneworld to win an immunity grant to compete more effectively with rival SkyTeam and Star alliances.

(Reuters)

Oneworld carriers seeking approval for an immunised [Vous devez être inscrit et connecté pour voir ce lien] are waiting for a determination from the US Department of Transportation if anticompetitive concerns raised by the country's Justice Department are justified.

American, [Vous devez être inscrit et connecté pour voir ce lien] and Iberia face the challenge of winning blanket immunity from the DOT as the Justice Department under the administration of President Barack Obama has a clear aversion to immunised relationships across all business sectors, says MIT airline researcher William Swelbar. Justice raised its specific concerns to DOT, which ultimately grants authority, almost two months after the deadline to submit comments passed.

The concerns stem from what Justice perceives as compromised competition on six transatlantic markets from London Heathrow to Boston, Chicago, Dallas, Miami and New York; and Miami-Madrid. It notes in Dallas-London and Madrid-Miami, the oneworld partners offer the only nonstop service. The agency believes fares would rise in all those markets once immunity is granted and competition is eliminated.

Oneworld though argues the methods used by Justice to determine fares would rise are flawed. They say Justice provides no statistically significant evidence to support a burden of proving potential harm "on any route other than Dallas/Fort Worth-London, a small local origin and destination market that enjoys its current level of service precisely because of the alliance between American and British Airways".

While Swelbar of MIT acknowledges that London is a large origin and destination market, it is the key European gateway in this particular tie-up, and in the highly competitive transatlantic marketplace each of the immunised joint ventures of SkyTeam and Star features a large hub operation in Europe.

The suggestions by Justice to DOT to remedy its concerns are slot divestitures and carve outs, which are routes excluded from immunity. Conditions requiring them to relinquish hundreds of Heathrow slots was a driver in American/BA withdrawing their antitrust application in 2002, and both are adamant that since the first phase of EU-US Open Skies in March 2008, [Vous devez être inscrit et connecté pour voir ce lien] is not a key factor in a decision to grant antitrust.

Another remedy suggested by Justice of not earmarking divested slots would actually jeopardise competition, say the carriers. In that scenario Delta could take a Boston-Heathrow slot and use it at Detroit, where it faces no nonstop competition.

DOT's adherence to the remedies offered by Justice remains uncertain. In the proceedings that granted Star carriers Air Canada, Continental, [Vous devez être inscrit et connecté pour voir ce lien] and United transatlantic immunity, DOT ultimately required some carve outs after Justice expressed similar competitive concerns.

Swelbar says in this particular case, he would be surprised if DOT ignores all the concerns raised by Justice. Yet it is tough to determine if those concerns are justified. There are numerous competitive opportunities in the US-London market. "Everyone has had their hand in that pie," he says. As DOT continues to deliberate, carriers in SkyTeam and Star have secured anti-trust approvals and are developing joint ventures and gaining a competitive advantage, says Swelbar. "The weight of getting immunity has got to be fairly heavy on American and BA right now."

NEW YORK (Reuters) - [Vous devez être inscrit et connecté pour voir ce lien] and its Oneworld business partners are in talks with European regulators about giving up slots at London's Heathrow Airport to win antitrust immunity for their alliance, the Wall Street Journal reported on Friday, citing two people familiar with the matter.

A U.S. spokesman for British Airways confirmed that the airline is in discussions with the[Vous devez être inscrit et connecté pour voir ce lien] regarding its application for antitrust immunity, but could not elaborate on the specific details of the current discussions.
"British Airways is very hopeful that we won't have to give up any slots," said U.S. spokesman John Lampl.
British Airways, along with [Vous devez être inscrit et connecté pour voir ce lien] and Iberia Lineas Aereas de Espana SA need approval from European and American regulators to operate certain routes across the Atlantic.
American and Iberia could not immediately be reached for comment.
British Airways has said in the past that it does not need to give up the slots at Heathrow in order to win regulatory approval.
(Reporting by Ernest Scheyder and Martinne Geller;Editing by Sanjeev Miglani)

Les compagnies aériennes British Airways, American Airlines et Iberia, soupçonnées d'entente illégale sur les vols transatlantiques par la Commission européenne, lui ont fait des propositions pour tenter d'y remédier, a annoncé Bruxelles lundi.

Spanish airline Iberia has slated February 12 and February 25 as possible dates to sign the memorandum of
understanding for its merger with British Airways, financial daily Cinco Dias reported on Wednesday.

Iberia hosted a summit with 90 top executives last week in Madrid, during which it set the date for the planned tie-up and a target to grow its long-haul operation by 10 percent in two years, Cinco Dias cited sources familiar with the summit saying.

Iberia and BA announced a memorandum of understanding in November for a merger to create the world's third largest airline by revenue.

The main stumbling block to the merger will be an agreement on how to address the British carrier's multi-billion pound pension fund deficit.

BA posts third-quarter to end-December results on Friday, with analysts expecting an operating loss of between GBP£90 million and GBP£100 million.
Iberia reports its full-year to December results on February 24. (Reuters)

American Airlines and Japan Airlines (JAL) today filed an application with the U.S. Department of Transportation (DOT) for antitrust immunity to forge a closer relationship and implement a Joint Business Agreement (JBA) governing the operation of their flights between North America and Asia. The airlines also will notify the Ministry of Land, Infrastructure, Transport and Tourism in Japan of the transaction.
"An immunized JBA will benefit the public, offer new competition in the fast-growing Asian aviation marketplace and strengthen the relationship between American and Japan Airlines, which will support JAL's successful restructuring," said Gerard Arpey, American's Chairman and CEO. "It will improve customer choice by giving the oneworld Alliance, of which American and JAL are key members, strong hub operations at Tokyo, thus allowing more vibrant competition with other global alliances in northeast Asia and beyond."
"With immunity to enter a JBA, Japan Airlines and American Airlines will be able to cooperate more tightly in raising the quality of our services and thus encourage healthy competition in this promising region for the industry," said JAL Group Chief Operating Officer and President Masaru Onishi. "Furthermore, not only will both carriers be able to improve operational efficiency but most importantly, our valued customers will receive greater benefits and convenience which we hope will place us in a position to always be the airlines of their choice."
Antitrust immunity between American and JAL is made possible by the Open Skies accord reached by the United States and Japan in December 2009. When that agreement becomes effective, it will eliminate the restraints on competition.
More Consumer Benefits, Choices and Travel Options
Under an immunized JBA, American and JAL will cooperate commercially on flights while continuing to operate as separate legal entities. They will coordinate fares, services and schedules in order to attract new customers and boost revenues. By more closely integrating their networks, the airlines will be able to improve efficiency, find opportunities to lower costs and have greater ability to invest in products, services and fleets.
By working together to provide links for connecting passengers, the airlines can expand customer choice by offering new routes and supporting existing routes that would not be economically viable for the airlines individually. American and JAL expect more opportunities to expand their codeshare arrangements on flights within and beyond Japan and the U.S. and to create new competition in the trans-Pacific marketplace. Consumers also will continue to receive reciprocal frequent flyer benefits, and eligible customers will continue to have access to the airport lounges of both airlines.
Employees and other stakeholders are expected to benefit from the airlines' improved competitive position and financial stability.
The JBA will be "metal neutral," meaning American and JAL will benefit from a customer's ticket purchase regardless of which one carries the passenger, as the airlines will share revenue on all JBA flights. The revenue growth resulting from the JBA will provide both airlines with substantial support towards improving profitability.
Enhanced Trans-Pacific Competition
The closer cooperation between oneworld Alliance members American and JAL will improve network competition with the other alliances. Through the JBA, the two airlines will offer a fully-integrated network between trans-Pacific gateway airports, ensuring all customers a third robust global airline alliance from which to choose, and more options for time-sensitive business travelers.
About American Airlines
American Airlines, American Eagle and AmericanConnection serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in more than 130 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation (NYSE: AMR).
About Japan Airlines
The JAL Group, comprising of Japan Airlines International and 7 other subsidiary airlines, carried more than 41 million passengers in 2009. With a fleet of more than 270 aircraft including Boeing 777s and regional jets like Embraer 170, the JAL Group airlines cover extensive international and domestic networks. Top quality in-flight service has always been the hallmark of JAL's reputation. In December 2007, JAL started offering JAL Premium Economy service - winner of the 2008 Good Design Award, on key business routes and now available on flights to JAL's four U.S gateways are the latest luxurious new suite JAL First Class and the leading-edge seat for business class, the JAL Shell Flat Neo introduced in August 2008. A member of the oneworld Alliance since April 2007, JAL, together with its partners in the alliance offers customers more benefits and high standards of quality services.
Current AMR Corp. releases can be accessed on the Internet.
The address is [Vous devez être inscrit et connecté pour voir ce lien]

SOURCE: American Airlines

PR Newswire

DOT requires Heathrow slot divestment for AA-BA anti-trust

US regulators have tentatively approved transatlantic anti-trust immunity for Oneworld partners American, [Vous devez être inscrit et connecté pour voir ce lien], [Vous devez être inscrit et connecté pour voir ce lien] and Iberia on the condition they make four pairs of London Heathrow slots available to competitors for new US-Heathrow flights.

The relinquishment of slots has long been discussed as a potential requirement for the Oneworld partners to ultimately achieve anti-trust. Previously American chief executive officer Gerard Arpey has said he doesn’t believe any remedies are necessary in order for the partners to gain necessary approvals to launch a transatlantic joint venture. DOT in granting tentative approval explains that benefits from allowing the Oneworld partners to operate under anti-trust include lower fares on more routes, increased services and better schedules.
But the department also believes the proposed tie-up would harm competition on select routes between the USA and Heathrow, where regulators feel the availability of landing and takeoff slots is limited.

In addition to requiring the relinquishment of four pairs of Heathrow slots, DOT is also requiring changes to ensure capacity growth while also requesting the partner airlines submit traffic data for review.

Despite the stipulations, DOT has concluded the proposed alliance among the Oneworld partners will “enhance competition around the world by creating competition with the existing Star alliance and SkyTeam alliance, which have already been granted immunity

DOT Proposes Approval of oneworld Antitrust Immunity Application

The U.S. Department of Transportation today proposed to grant antitrust immunity to American Airlines and four international partners to form a global alliance. Under the proposal, the airlines must agree to conditions to protect consumers and preserve competition.
If the decision is made final, American and its “oneworld” alliance partners British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines would be able to more closely coordinate international operations in transatlantic markets.
In today’s show-cause order, the Department tentatively found that granting antitrust immunity to the oneworld alliance would provide travelers and shippers with a variety of benefits, including lower fares on more routes, increased services, better schedules and reduced travel and connection times. The Department also said the proposed alliance would enhance competition around the world by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity.

However, the Department also noted that the alliance could harm competition on select routes between between the United States and London’s Heathrow Airport, oneworld’s primary hub, where the availability of landing and takeoff slots is limited. As a condition of approval, the Department is proposing in its show-cause order that the applicants make four pairs of slots available to competitors for new U.S.-Heathrow service. The Department also would require changes to the agreement to ensure capacity growth, and require the carriers to submit traffic data and implement the proposed alliance within 18 months of a final decision.
Interested parties are invited to show cause why the proposed decision should not be made final. Objections are due in 45 days, and answers to objections 15 days afterward. Following the comment period, the Department will review all filings and then issue a final decision.
Today’s proposed decision, comments and other documents in the case are available on the Internet at [Vous devez être inscrit et connecté pour voir ce lien], docket DOT-OST-2008-0252.

DOT Proposes Approval of oneworld Antitrust Immunity Application

The U.S. Department of Transportation today proposed to grant antitrust immunity to American Airlines and four international partners to form a global alliance. Under the proposal, the airlines must agree to conditions to protect consumers and preserve competition******.

If the decision is made final, American and its “oneworld” alliance partners British Airways, Iberia Airlines, Finnair and Royal Jordanian Airlines would be able to more closely coordinate international operations in transatlantic markets.

In today’s show-cause order, the Department tentatively found......

.....that granting antitrust immunity to the oneworld alliance would provide travelers and shippers with a variety of benefits, including lower fares on more routes, increased services, better schedules and reduced travel and connection times. The Department also said the proposed alliance would enhance competition around the world by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity.

However, the Department also noted that the alliance could harm competition on select routes between between the United States and London’s Heathrow Airport, oneworld’s primary hub, where the availability of landing and takeoff slots is limited.
As a condition of approval, the Department is proposing in its show-cause order that the applicants make four pairs of slots available to competitors for new U.S.-Heathrow service. The Department also would require changes to the agreement to ensure capacity growth, and require the carriers to submit traffic data and implement the proposed alliance within 18 months of a final decision.

Interested parties are invited to show cause why the proposed decision should not be made final. Objections are due in 45 days, and answers to objections 15 days afterward. Following the comment period, the Department will review all filings and then issue a final decision.
Today’s proposed decision, comments and other documents in the case are available on the Internet at [Vous devez être inscrit et connecté pour voir ce lien][/url], docket DOT-OST-2008-0252.

US regulators have tentatively approved transatlantic anti-trust immunity for Oneworld partners American, [Vous devez être inscrit et connecté pour voir ce lien], [Vous devez être inscrit et connecté pour voir ce lien] and Iberia on the condition they make four pairs of London Heathrow slots available to competitors for new US-Heathrow flights.
The relinquishment of slots has long been discussed as a potential requirement for the Oneworld partners to ultimately achieve anti-trust. Previously American chief executive officer Gerard Arpey has said he doesn’t believe any remedies are necessary in order for the partners to gain necessary approvals to launch a transatlantic joint venture.

DOT in granting tentative approval explains that benefits from allowing the Oneworld partners to operate under anti-trust include lower fares on more routes, increased services and better schedules.
But the department also believes the proposed tie-up would harm competition on select routes between the USA and Heathrow, where regulators feel the availability of landing and takeoff slots is limited.

In addition to requiring the relinquishment of four pairs of Heathrow slots, DOT is also requiring changes to ensure capacity growth while also requesting the partner airlines submit traffic data for review.

Despite the stipulations, DOT has concluded the proposed alliance among the Oneworld partners will “enhance competition around the world by creating competition with the existing Star alliance and SkyTeam alliance, which have already been granted immunity”.

British Airways, American Airlines and Iberia have offered to cede a number of lucrative trans-Atlantic slots in an attempt to ease competition concerns and gain EU approval for their alliance.

The European Commission said on Wednesday that interested parties would have until April 10 to comment on the airlines' concessions. The three carriers are members of the oneworld airline alliance.
"If the market test confirms that the proposed commitments remedy the competition concerns, the Commission may adopt a decision... making the commitments legally binding on the parties," the European Union competition watchdog said.

It said in a statement that the airlines had offered to give up some landing and take-off slots for routes from London to Dallas, Boston, Miami, Chicago and New York, and from Madrid to Miami.
The carriers also proposed to allow access to their frequent flyer programmes on the routes and submit data on their cooperation.

The Commission opened an investigation into the planned alliance last April.

The airlines want to manage jointly schedules, capacity and pricing as well as share revenues on routes between North America and Europe.
American Airlines, British Airways, Iberia, Finnair and Royal Jordanian last month secured tentative approval from the US Department of Transportation (DOT) for their plan to form an alliance.
The DOT has given interested parties 45 days to object. Answers to objections will take a further 15 days.
The Commission is also probing proposed alliances between members of Star Alliance, and members of SkyTeam, both rivals of oneworld.

(Reuters)

Oneworld partners British Airways, American Airlines and Iberia offered to lease at least four daily slot pairs at London Heathrow or Gatwick to competing carriers for service to three US cities in order to address regulatory concerns about their proposed transatlantic joint venture.

Early last month the European Commission said it was assessing "the effectiveness of proposed commitments" by the airlines designed to address a formal Statement of Objections issued last September. At that time, the EC identified a number of long-haul routes, mainly between LHR and the US, with potential antitrust issues [Vous devez être inscrit et connecté pour voir ce lien].
Later in February the US Dept. of Transportation tentatively granted antitrust immunity to the oneworld joint venture under the condition that the carriers surrender four slot pairs at LHR for up to 10 years [Vous devez être inscrit et connecté pour voir ce lien]. DOT did not suggest LGW was an acceptable alternative. AA and BA repeatedly have resisted ceding slots at LHR.
Yesterday, BA issued a statement addressing the EC investigation and pledged that the trio will make available for lease to non-oneworld airlines two daily slot pairs to Boston from either LHR or LGW, one daily slot pair to Dallas/Fort Worth from LHR or LGW and one daily slot pair to Miami from LHR or LGW. In addition, two slot pairs from London to New York JFK could be made available "should today's competitive conditions between [the cities] change," according to BA.

"The slots can be leased from the airlines' current slot portfolio and don't have to be slots currently used on the specified routes. The European Commission has agreed that the airlines should be compensated financially by those airlines wishing to lease slots," BA said.

"We're pleased that the EC has recognized that we should be compensated for leasing the slots. This reflects the fact that there is an active slots market in London where slots are generally traded for value," BA CEO Willie Walsh said. There had been speculation that the EC might demand the slots be surrendered for free. The initial leasing period will be five years, a BA spokesperson told ATWOnline, adding that the decision regarding which airline will give up which slot will be finalized once regulatory approval is finalized."

"The EC is expected to conduct its "market test" phase, which allows third parties to comment on the airlines' proposal, before making a final decision on April 10.
Regarding the US DOT ruling, the oneworld trio reiterated that it is "reviewing the order and will respond by the timeframe established for comments," and said it "welcomed the EU's announcement that it will be working closely with the US DOT and taking into account its opinion at key points in the regulatory process." A final DOT ruling is expected at the end of April.

by Cathy Buyck

India's [Vous devez être inscrit et connecté pour voir ce lien] has become a member elect of the oneworld alliance, after signing a formal agreement with the 12 existing members on the sidelines of the [Vous devez être inscrit et connecté pour voir ce lien] in Berlin.
The carrier signed a memorandum of understanding with oneworld in late February, setting out a framework for membership discussions. Today's agreement comes after India's ministry of civil aviation gave the airline's application its green light.

A team of experts from [Vous devez être inscrit et connecté pour voir ce lien] - Kingfisher's sponsor for joining the alliance - and oneworld have helped the airline to begin the process of joining the alliance, and the carrier has cleared the first step by passing a safety audit. A firm date for it to join the alliance will be announced as the implementation programme progresses, although oneworld says that this normally takes 18-24 months.

"The addition of Kingfisher Airlines is another key element in making 2010 even more of a breakthrough year for oneworld," says Gerard Arpey, chairman and chief executive of American Airlines and chairman of the alliance's board. Willie Walsh, chief executive of British Airways, adds: "We are very pleased to have gained regulatory approval so quickly from New Delhi to add Kingfisher Airlines to oneworld - and we intend to move ahead with its implementation just as speedily and smoothly."

Vijay Mallya, chairman and chief executive of Kingfisher, says that membership will strengthen the carrier's competitive position. He adds that the airline will try to complete the implementation programme on time and smoothly.

Oneworld says that the membership process involves connecting the new recruit's IT systems to those in all other members, and standardising its customer service, frequent flyer and distribution processes.

Links between oneworld and Kingfisher will deepen when a new passenger terminal opens at New Delhi's international airport next month, when all six alliance members that serve India's capital will then share Kingfisher' new premium passenger lounge.

Adding Kingfisher to oneworld will give the alliance an additional 56 Indian cities to its network, expanding its global coverage to more than 800 destinations in almost 150 countries. Kingfisher's main Indian hubs are in Mumbai, New Delhi and Bangalore. The airline launched its first international routes in September 2008, and serves hubs like Bangkok, Dubai, Hong Kong, London Heathrow and Singapore.

SkyTeam eyes further expansion on 10th anniversary

SkyTeam member airline CEOs meeting in New York this week to mark the alliance's 10th anniversary formally signed an agreement with China Eastern Airlines to begin its process for becoming a full member and upgraded the status of Air Europa and Kenya Airways from associate to full membership.
Vietnam Airlines ([Vous devez être inscrit et connecté pour voir ce lien]) officially became its 12th member earlier this month and Romania's Tarom will become the 13th on Friday ([Vous devez être inscrit et connecté pour voir ce lien]). Speaking to reporters following the meeting, SkyTeam Chairman Leo van Wijk said CEA's decision to join ([Vous devez être inscrit et connecté pour voir ce lien]) "means no further additions" in mainland China for the alliance, which already counts China Southern Airlines as a member.
But the grouping does want to add more carriers in "Southeast Asia and the larger Asia/Pacific" as well as in India and Latin America, he said. "There are some white spots in the network that we will be focusing on."
Though Latin America is a prime target, it is "the most difficult" area in which to find potential partners with suitable network scope because "the market is rather fragmented," van Wijk said. "It is not a continent where one solution will do, so we are targeting more carriers in the different regions of the continent."
Regarding India, SkyTeam MD Marie-Joseph Male noted to ATW that it "is really an evolving market," adding that the alliance likely will monitor it for some time before extending a membership invitation. "We certainly have to see what options are left" after the Indian market matures further, he said. Air India already is pledged to Star Alliance and Kingfisher to oneworld.
Van Wijk said SkyTeam may not ultimately match Star's size but asserted that "seamlessness of the network will be the key differentiator from Star Alliance…That doesn't mean [all SkyTeam carriers' service offerings have to be] identical…but the connectivity and seamlessness of the service has to be visible to the customer." He said the alliance is aiming to consolidate SkyTeam carriers' gates and facilities at six airports globally per year to improve connectivity.
Asked if there is a risk of lowering overall customer service standards as more airlines are added, Male told this website, "In any case, whomever wants to join has to commit to go through a process and comply with more than 100 membership requirements. That in and of itself ensures that we have a level of service offering that's acceptable." When analyzing potential members, SkyTeam first does a "strategic evaluation" to determine whether a carrier "brings value in terms of market and coverage," he explained. "Then after we finish that process we see if the airline has the will to transform its program" to meet alliance standards.

[Vous devez être inscrit et connecté pour voir ce lien] has obtained European clearance for its planned merger with Iberia, on the same day as the two carriers secured approval for their transatlantic tie-up with Oneworld partner American Airlines.

The European Commission had examined the potential impact on routes from London to both Madrid and Barcelona.
But it says its inquiries showed the merged airlines would "continue to face sufficient competition from other carriers".

Regulators also studied several short- and long-haul routes on which BA and Iberia each offered one-stop connections, or a one-stop alternative to their partner's non-stop flight.

The Commission says the combined airlines will also face "enough" competition on these routes, and adds that the transaction will not affect competition in the ground-handling, maintenance or freight markets.

As a result, says the Commission, the merger between BA and Iberia will "not significantly impede competition" in the European Economic Area.
BA says the unconditional approval, which follows regulatory clearance from US authorities last month, marks "another important step" towards completion of the merger.
It plans to complete the merger with Iberia by the end of this year.

Oneworld carriers [Vous devez être inscrit et connecté pour voir ce lien], American Airlines and Iberia have received clearance from the European Commission for their proposed transatlantic tie-up.
The decision follows commitments from the airlines offered in order to allay competition concerns over their planned joint venture.
In a statement the Commission says it has "made legally binding" the commitments from the carriers.

Among the concessions offered by the carriers were slots at London Heathrow to allow the entry or expansion of competitors on routes to the US cities of New York, Boston, Dallas and Miami.
"After a market test, the Commission concluded that the commitments offered were suitable to remedy the competition concerns and has closed its investigation," the Commission says.

Air Berlin to join Oneworld alliance

German carrier Air Berlin is intending to join the Oneworld alliance, and has reached a preliminary agreement on membership.
Air Berlin's bid is being sponsored by British Airways. It has also entered codeshare pacts with Oneworld's American Airlines and Finnair.
The German carrier says it has agreed on "key aspects" of its prospective accession to Oneworld and "will work towards completing a full membership agreement".
"Membership in Oneworld would strengthen Air Berlin's competitive position and enable it to participate in the alliance's revenue-enhancement and cost-reduction activities," it adds.
Air Berlin's tie-up with American will allow it to offer codeshare flights to 15 additional US destinations, plus two in the Bahamas. The Finnair partnership will provide codeshare access on routes to points in Europe and Asia

German carrier [Vous devez être inscrit et connecté pour voir ce lien]move to become the [Vous devez être inscrit et connecté pour voir ce lien]signals new ground for the airline, the grouping and alliances in general.

Air Berlin has [Vous devez être inscrit et connecté pour voir ce lien]regarding its membership of the group and says a formal alliance agreement will be "signed soon". It aims to complete membership in time to enter the alliance in early 2012, shortly before the opening of Berlin's new Brandenburg International Airport in June of that year.

In the meantime Air Berlin is already planning to co-operate with oneworld carriers American Airlines and [Vous devez être inscrit et connecté pour voir ce lien] through codeshares this year, and says bilateral agreements are intended with [Vous devez être inscrit et connecté pour voir ce lien] and Iberia.
Air Berlin will bring 75 more points to the alliance's network and take its destination count close to 900 when it joins the alliance. "One area where we [oneworld] have been keen to expand our network has been central Europe, Germany in particular," says Willie Walsh, chief executive at Air Berlin's oneworld sponsor British Airways.

"Germany is the biggest country in the EU, Europe's largest economy." While he points to the number of services oneworld carriers fly into Germany - 10 of its 11 members serve the country - he adds: "We don't currently have a network within the region. With the addition of Air Berlin, our alliance will be able provide even more flights to Germany and also a much more extensive network within central Europe. The opening of the [Vous devez être inscrit et connecté pour voir ce lien]makes it an even more attractive proposition.

Chief executive of Air Berlin, Joachim Hunold, describes the move as the fourth stage in the carrier's development which after a number of acquisitions has seen it evolve from a small charter operation into one of Europe's largest airlines - generating $4.5 billion in revenues in 2009. "Now we have reached a fork in the road as far as our future strategy is concerned. Go it alone or take advantage of the growing trend for partnerships and globalisation."

Following a review he says it is clear the industry is following a path of alliances and consolidation and that joining a global alliance is the most promising option.

"It puts our airline firmly on the global stage," he adds.

Air Berlin's oneworld move though also signals a further meeting between the traditional full service and low-cost carrier worlds, already evident earlier this year when American unveiled a partnership at New York JFK with US low-cost carrier JetBlue.

Air Berlin has itself always shied away from defining itself in the pure low-cost carrier bracket and has a successful frequent flyer programme, operates out of primary airports and has a premium class product on its long-haul services. "We call ourselves a hybrid carrier, that means we aim to offer high quality product at favourable prices," says Hunold. "We clearly differentiate ourselves from the no-frills carriers and offer a product that is comparable with legacy carriers."

But Air Berlin's low-cost credentials are recognised by the alliance members. "The low-cost structure [of Air Berlin] will provide oneworld a real advantage when competing with airlines in rival alliances in this part of the world. It will give oneworld a fantastically cost-effective feeder network in Europe," says Walsh, adding oneworld members will be able to "learn a thing or two about cost control from our new found friends in Berlin".

The agreement with Air Berlin marks the latest development in what oneworld managing partner John McCulloch describes as a "breakthrough year" for oneworld.

Hot on the heels of [Vous devez être inscrit et connecté pour voir ce lien], oneworld will later this year add Russian carrier S7 - itself an existing partner of Air Berlin - as the 12th member of the alliance. It also earlier this year formally invited Indian carrier Kingfisher into the alliance and secured the continued commitment of Japan Airlines to oneworld. [Vous devez être inscrit et connecté pour voir ce lien], while American, BA and Iberia have just secured European and US approval for their transatlantic joint venture.
"We have waited 14 years for the benefits of the transatlantic joint business for our customers and to compete on an equal base with the other two global alliances," says McCulloch.

Air Berlin's Austrian associate carrier Niki is to become an affiliate member of the Oneworld alliance when the German airline joins in early 2012.
Niki, which is almost 50%-owned by Air Berlin, operates low-cost services from locations including Vienna.
Air Berlin has signed a memorandum of understanding with Oneworld regarding its membership of the group and says a formal alliance agreement will be "signed soon".

Its accession to Oneworld, which will come shortly before the opening of Berlin's new Brandenburg International Airport, will bring 75 more points to the alliance's network and take its destination count close to 900.
But Air Berlin is already planning to co-operate with Oneworld carriers American Airlines and [Vous devez être inscrit et connecté pour voir ce lien] through codeshares this year, and says bilateral agreements are intended with [Vous devez être inscrit et connecté pour voir ce lien] and Iberia.
"Joining a global alliance is the logical next step in Air Berlin's development," says chief executive Joachim Hunold.
"Becoming part of Oneworld would be one of the most significant departures so far for our airline, enabling us to offer our customers a truly global network served by partners who include some of the best and biggest airlines in the world."

Members of the Oneworld alliance predict a significant battle will ensue during the next two-to-three months among the three large global alliances to secure membership from the merged LAN and TAM airlines.

Oneworld managing director John McCulloch made that declaration today during the annual International Aviation Forecast summit hosted by the Boyd Group International.
McCulloch states he feels pretty certain that despite "rhetoric out there", that the carrier will only select a single alliance partner.

LAN and TAM unveiled their plans to merge in August of this year, and have previously said they wouldn't settle on an alliance decision until 2012, but McCulloch tells ATI "they seem well ahead of the timetable" in their integration, and from Oneworld's perspective, it is important now for the group to begin making its case to the carriers.

TAM joined Star in May of this year while LAN is a long-standing member of Oneworld, joining the alliance in 2000.

McCulloch says Oneworld will try to persuade LAN-TAM that choosing the grouping will give the combined Latin American carrier a key footprint in Europe and the USA, which are "crucial for LAN-TAM's future profitability".
He also believes Oneworld has insight into other areas where the combined carrier would like to grow, citing the UK and Spain as examples. "We can play to those strengths," he says.

In parallel to the battle for LAN-TAM's alliance allegiance, Oneworld continues to pursue opportunities in Brazil, Canada and China. The alliance lost a key contest earlier this year when China Eastern opted to join the SkyTeam grouping. McCulloch believes that Oneworld had the better value proposition for China Eastern, but certain "leadership ambitions within the airline" led to the carrier's selection of SkyTeam.

While Canada's second largest carrier WestJet has repeatedly stated its desire not to formally join one of the three major alliance groupings and instead focus on building as many bilateral relationships as possible, McCulloch states that there are six-to-eight Oneworld members that could forge important bilateral relationships with WestJet.
American and WestJet on 19 October announced an interline agreement whose first phase will cover 25 of WestJet's Canadian destinations not currently served by American.

Oneworld is also celebrating the recent launch of the transatlantic joint venture of American, British Airways and Iberia. As the new venture gets off the ground McCulloch says Oneworld is ramping up its corporate selling push, something he admits Star partners United, Air Canada and Lufthansa have historically performed better at than Oneworld.

Jeannot a écrit:LAN a les dents longues. La compagnie pourrait acquerir la compagnie Colombienne Aires ainsi que la strartup colombienne AerOasis

LAN to acquire Colombia's Aires

LAN has unveiled plans to acquire Colombian carrier Aires, only hours after it informed analysts of its plans to exercise its option to buy Colombian start-up AerOasis.
The Chile-based airline group in a statement issued late on 27 October says it has forged an agreement to acquire 99% of Aires for about $32.5 million. It says the deal is subject to regulatory approvals and due diligence, which it estimates will take 30 to 60 days.

Aires is currently the second largest carrier after Avianca in Colombia's fast-growing domestic market, operating to 27 Colombian cities with a fleet of nine Boeing 737-700s, 11 Bombardier Dash 8 Q200s and four Q400s. Aires also has a fledgling international network consisting of three destinations which it has been intending to grow dramatically.
LAN says Aires will become a new LAN affiliate carrier, joining the passenger carrier affiliates it already has in Argentina, Ecuador and Peru. LAN says if its pending merger with TAM is completed, Aires will also become part of the proposed LATAM Airlines Group.

LAN has been looking at entering the Colombian market for some time and in May unveiled plans to tie up with AerOasis, a proposed start-up which has been planning to launch services in Colombia since 2006. The two companies initially said the partnership only included LAN providing consulting services and helping AerOasis with the certification process.

But in late July LAN CFO Alejandro de la Fuente told analysts LAN was aiming to bring AerOasis into its airline group once the carrier launched operations. De la Fuente, during an analysts call earlier on 27 October to discuss third quarter earnings, said LAN was still intending to have AerOasis become part of LAN and explained this would be achieved by exercising an option it has to acquire AerOasis.

Given LAN is now planning to acquire an established carrier in Aires it would seems unlikely it will go forward and exercise its option to acquire AerOasis. In its statement announcing the Aires acquisition, LAN does not mention its option to buy AerOasis but says its agreement to buy Aires "has no impact on the technical support and service consultancy provided by LAN to Colombian airline AerOasis in the process of obtaining its operating permit issued by the Colombian Civil Aviation Authority".

During the 27 October analyst call, de la Fuente said AerOasis was expected to secure all the required regulatory approvals early next year and launch services in February with three Airbus A320s subleased from LAN. He said LAN's planned acquisition of AerOasis would occur just before its planned February launch and just after it is authorised to begin operations.
"We have an option to purchase the company. Once the regulatory approvals are received the idea is to acquire AerOasis." de la Fuente explained.

He added that once it purchased AerOasis, the company would become a LAN affiliate and it would later become part of the LatAm Airlines Group once the merger with TAM is completed.

De la Fuente said while AerOasis was planning to launch operations with three of LAN's A320s the plan was to increase its fleet to five aircraft "fast". He added that "we have plans to increase the operation to 10 aircraft in a short period".
LAN executives said AerOasis would initially operate only domestically following "more or less" a low-cost model but international flights would be added later. Aires currently operates its 737s under a low-cost model while its Q200s are operated under a more traditional regional model.

AerOasis is currently owned by Colombian investment firm Corso. Aires is privately owned by a group of Colombian families although it previously said it would look at some point for a public offering to help fund its ambitious expansion. LAN says it is acquiring 99% of Aires "through the purchase of its parent entities".

As there are not any foreign airline ownership restrictions in Colombia, LAN should not have any problems securing approval to acquire Aires or AerOasis.

LAN's foray into Colombia will increase competition between LAN and the recently established Avianca-TACA group. The two groups already compete head to head in Peru, where they both have affiliates.

Competition will also increase between LAN and Panama's Copa, which has a subsidiary in Colombia that was recently rebranded from Aero Republica to Copa Airlines Colombia. Aero Republica is the third largest carrier in Colombia, having recently been overtaken by fast-growing Aires.

Former Avianca president Juan Emilio Posada also is preparing to launch a new low-cost airline in Colombia in the third quarter of next year with backing from a major South American investment bank. EasyFly, a Colombian regional carrier which was launched in 2007 by former Aero Republica owner Alfonso Avila, also has been looking at entering domestic trunk routes following low-cost model.

In speaking to analysts earlier on 27 October, LAN executives acknowledged Colombia is a highly competitive market but pointed out it is also "very attractive" because it is growing so fast. In the first half of this year Colombia's domestic market grew 38% to 7.4 million passengers and its carriers expect growth to continue as low fares and fast economic growth generate new demand.

De la Fuente told analysts that while LAN has "very strong competitors" in Colombia its operation there will be very cost efficient. "The idea is to grow very fast in that market," he said.

Dossier à suivre ! Le timing de Lan semble bon ! Son "Business Plan", aussi ! ;)