Allplane

A personal note

2012-02-08T15:21:00.000-08:00

Some of the regular readers of this blog might have noticed that I have been recently posting a bit less regularly than usual. The fact is that it has been really hectic in the last few weeks and the big news is that as of this week, I am working as a content editor at Flightglobal.com

I will continue writing this blog, but, as you might imagine, most of my aviation-related activity is now going to be devoted to this new professional project, so, I apologize in advance if my posts become less frequent and less business-related, in any case, I think it is going to be a great chance for me to explore the World of aviation from a more personal angle. Watch this space, I will keep you posted!

A tribute to Spanair, in pictures...

2012-01-31T04:27:00.000-08:00

I travel often through Spanish airports, where Spanair aircraft were a common sight. They came in different sizes and colours, the result of a convulse corporate history. Spanair, we will miss you!

Here is my photo-tribute:

The old livery, here a Spanair Airbus at Madrid-Barajas

And the new livery...this one spotted at BCN

Spanair was a proud Star Alliance partner

A Boeing 717, we'll see some more of these in the European skies soon!

Spanair was positioning itself as "the Barcelona airline": here a map of its network in a commercial advert

A Spanair MD-83 with the city of Barcelona in the background

Spanair EC-GVO taxiing at BCN

Spanair's fleet was initially made of MD-83s, some of these have remained with the carrier until the end

The old and new liveries side by side at BCN

Despite management efforts, the outlook had always been really foggy for Spanair...

Spanair's collapse: a few notes

2012-01-30T07:56:00.000-08:00

When I wrote my latest post a few days ago, I was not expecting to write again so soon about the Spanish aviation industry, but the events of last Friday, despite not being entirely unexpected, have shaken to the core the Spanish airline industry, nothing less than the collapse of Spanair.

I have been following the Spanair saga almost since the day I started this blog and a lot has been said already about Spanair's demise (the Spanish and, particularly, the Catalan press are packed with news, reports and comments about the Spanair case), so this won't be a long post...

The fact is that Spanair was fighting an uphill battle from the very start (by "start" I refer to the date when Spanair was acquired and re-founded by a consortium of government-back Catalan institutions after its near bankruptcy in 2008):

1) When it was acquired by its current owners, Spanair was already in a difficult financial situation and under-capitalized

2) The financial crisis has hit very hard its main markets

3) It was a not-particularly-efficient airline that had to face formidable competitors such as Vueling and Ryanair at its own home base

4) It lacked any significant source of differentiation, it was neither strong enough to develop a viable network or superior service, nor efficient enough to deliver value, plus it lacked a strong brand.

5) It was acquired with government-backed funds because it was expected to help in the development of a long-haul hub at Barcelona airport, a mission that it was totally uncapable to fulfil since it lacked the fleet or the feeder routes to do it. Governments and business do not usually mix very well, but it becomes even more difficult to justify such support when there aren't any tangible results in the form of a greater return to the overall economy and the government itself is going through a round of public spending cuts.

Then there is Spanair's membership of Star Alliance: there was the expectation, that, if not alone, at least with the support of its partners, Spanair would be able to consolidate some sort of hub at BCN, while giving Star Alliance a solid foothold in South-Western Europe.

None of this is going to happen, no Qatar Airways last minute rescue either, although judging by Vueling's quick reaction, I think this supply shock will be quickly absorbed by other carriers (I have written already about the adaptability and resilience of air travel markets).

Vueling is, indeed, the airline that benefits the most from Spanair's demise and emerges from this situation undisputedly as Barcelona's home airline, with an expanding network and a product that has been evolving from the pure low-cost model to that of an hybrid carrier, able to appeal to both business and leisure passengers.

The Spanish airline industry, in a state of flux

2012-01-14T06:27:00.000-08:00

A constant flow of news is coming out of the Spanish airline industry, making it one of the hotspots of the industry in Europe, so I thought about writing this post to summarize what is going on...

One of the most amazing things is that the deep economic crisis that Spain is currently going thorugh is not enough to deter Spanish airline entrepreneurs...one of the most exciting developments we have seen in last few months is the set-up of "stealthy" Barcelona-based airline startup, Volotea. Little is known about this project so far, except the identity of the founders, the fact that it is going to operate in the short-haul market and that its fleet is going to be composed of Boeing 717s. All these details, that were already advanced in the post I wrote a few weeks ago, have now been confirmed. Some reports in the press pointed also to the fact that it might not restrict its operations to the Spanish market only.

This is certainly an interesting timing to get into Spain's regional market, as the main incumbent in this segment, Air Nostrum is grounding up to 15 aircraft, reducing the number of staff and considering to move its headquarters from crisis-hit Valencia, on the Mediterranean coast, to the Basque city of Bilbao.

Air Nostrum operates many regional routes within Spain on behalf of Iberia

At the same time Vueling has announced an investment of €325 million and a major expansion at its Barcelona base, with 5 new Airbus A320 based there and the launch of 23 new routes. This will bring Vueling's total number of cities served from Barcelona to 70, which makes it one of the largest short-haul networks in Europe.

Vueling's recent network expansion strategy is also worth of note, not only from a quantitative but also from a qualitative point of view...I wrote not long ago about how Barcelona could fulfill its hub ambitions by having an airline develop a network linking it to second and third-tier cities around the Western Mediterranean. The aim would be to become the reference hub for this region, in a way similar to what KLM does with its links between Amsterdam and British and Scandinavian regional airports. When I wrote this what I had in mind was more of a regional type of operation (as KLM does) and I still have serious doubts about whether the Airbus A320 is the right aircraft for this type of operation based on thin routes, but Vueling's route map, particularly in France, with additions such as Bordeaux, Lourdes, Marseille, Nantes and Brest, and Italy, with Genoa, Pisa, Verona,...plus its new "connection flight" service seem to fit well with this strategy. Whether this will ultimately lead to the materialization of the much-awaited long-haul hub at Barcelona remains to be seen...

It is also noteworthy that Vueling is finally launching its first UK routes out of Barcelona (it flies already between the UK and several Spanish regional airports), a territory that, until now seemed reserved to the likes of Easyjet and Ryanair (by the way, the Irish airline has finally closed a deal with the Catalan government that will provide for 19 routes being launched or reinstated at Girona airport (GRO), just one hour drive North of Barcelona, BCN).

In the meantime, Barcelona's other carrier, Spanair, is languishing while awaiting its possible acquisition by Qatar Airways. Senior officials from the Catalan government and Barcelona City Council flew to Doha a few days ago to discuss the sale of Spanair to the Gulf carrier. As pointed out in this post, it will be interesting to see how petro-dollars affect the competitive landscape in the European airline industry. These negotiations, however, have not been obstacle for Qatar Airways to cooperate closely with Spanair's rival Iberia, to the point that it will be the only non-Oneworld airline to use Madrid's gigantic T4 terminal. Qatar Airways' passengers will also be able to use Iberia's domestic network for onward flight connections.

And I finish this post, precisely, with Iberia, as it is preparing the launch of its new low-cost airline Iberia Express. In reality, I think this move will be hardly noticeable to the average passenger: Iberia Express will be using the same aircraft and fly the same routes that Iberia already does, plus it will also offer business class. Iberia's on-board service on short-haul economy is already barely different to that of low cost airlines so not much of a change here either. So Iberia Express is more of a way to end a bitter labour dispute and lower operating costs in its short haul operations, a necessity for Iberia considering how entrenched Ryanair and Easyjet have become in the Spanish market, rather than the launch of a truly "new" airline.

Airline social seating is here...to stay

2012-01-13T02:37:00.000-08:00

If the previous post was featuring three great airline blogs, today is the turn of four new services that bring the principles of social shopping to one of the most important aspects of the airline passenger experience: seat allocation.

Once upon a time airline passengers were always asked whether they prefered window or aisle (not many people seem to like the middle seat!), the not so young might even remember when they had the choice of smokers/non-smokers...well, to be fair, many passengers still get the choice, but then came the low cost carriers and the era of unassigned seating, and the pay-to-choose-your-seat model...

And now a bunch of tech startups and a few airlines are starting to bring some zest back to seat selection...how? by applying the principles of social shopping and leveraging the power of social networks: when on a flight, wouldn't it be better to seat next to those you are more likely to have an affinity with you and have a more enjoyable flight?

Here are four initiatives in this field that have popped up recently, two are driven by specific airlines that seem to have developed it in-house, whether the other two are solutions provided by independent technology startups, and, therefore, not tied to any specific carrier.

1) Planely integrates with other platforms and applications, such as Tripit, Facebook and Linkedin, you disclose where are you flying to and Planely tells you who are you going to be travelling with, you can then connect and try to seat next to those you would like to speak with during the flight.

2) Satisfly is based on the concept of "intelligent seating", when you sign up you are asked a number of details about yourself, part of this can be filed automatically through integration with your existing social networks, additionally Satisfly also asks you for your flight mood (business talk, easy chat, work, relax) and neighbour profile (a number of questions about your preferences about potential seat neighbours, such as age or language spoken), Satisfly also collects information such as meal preferences or frequent flier programmes. The key element here is that Satisfly works alongside airlines, so once all these information is processed through its own patent-pending technology, the airline is going to be able to assign you a seat neighbour based on your preferences.

3) Malaysia airlines made the headlines a few months ago when it released the first airline Facebook app that allows booking directly on Facebook, without leaving the app. One of the interesting aspects of this app is the ability to see whether your Facebook friends are on the same flight and select seats accordingly (the system is opt-in only, so no risk of unsolicited encounters if you do not wish to be found)

4) KLM, once more a pioneer in the use of social media, is planning to release a service that looks for similarities and potential compatibilities in the passenger's social media profiles and activity and then allocates seating accordingly. Whereas not many details are available about this new initiative it sounds like an interesting idea, although, obviosuly not for everbody (it will need to be opt-in only), a project worth keeping an eye on!

Three airline blogs that stand out

2012-01-11T07:27:00.000-08:00

Every social media manual will tell you that having a corporate blog is a must. Opening a blog is actually not that difficult (this blog is proof of this :-)) but doing it in a nice and engaging way is another story, particularly when we are talking about "corporate" blogs...this is why I would like to highlight a few examples I came across of airline blogs that, in my opinion, are really outstanding:

1) KLM

The Dutch carrier has been a pioneer in the use of social media tools and its corporate blog could not be less. KLM's blog has a nice personal touch, presenting stories from all corners of KLM's network, and their Facebook page is also a must for any aviation history enthusiast, capitalizing on the airline's long history as the Dutch flag carrier and a real commercial aviation pioneer (KLM was founded in 1919, which makes it the oldest airline in the World still operating!). You can find some great pictures that will help you imagine how the passenger experience was in those early days of aviation!

2) Air New Zealand

Air NZ has been delighting observers of airline marketing for quite some time, with simple product innovations that have, nevertheless, the potential to improve considerably the passenger experience, funny aircraft safety videos and cute furry mascots...and Air New Zealands blog is up to what you would expect of such as creative airline...The Flying Social Network does not look like one more corporate blog, it's got a clean design, interesting articles and nice visuals...I do not tend to follow corporate accounts, but I made an exception with this one!

3) Finnair

Well, this is a classical one, and the Quality Hunters initiative got already its space in this blog, so I will point you towards my post of 2010: "Finnair, rethinking quality"

Is there a lack of innovation in the aviation industry?

2012-01-07T08:27:00.000-08:00

Ready to take another leap?

The other day a tweet from aviation social media expert Shashank, from Simpliflying caught my attention, it contained a quote from Splatf, a tehcnology blog that I also follow, it stated "The airplane industry needs its iPhone".

If you go to the article in question you will see what this means: there has been little radical innovation in the aircraft industry in the last few decades, with the two main manufacturers (plus some smaller ones) basically delivering incremental improvements of aircraft types that, in their basic form, have been in service for a really long time. The first Boeing 737 first flew in 1967!

Of course, the Boeing 737s that are being built today are superior in many ways to those earlier versions, but it could be argued that they are not "revolutionarily different". There has not been a leap as significant as the one that, for example, the Boeing 707 represented over the previous piston-engined planes!

This is not the only voice I hear recently warning that the rate of technological innovation has slowed downed over the last few decades, not only in aviation but in other industries too.

You could say the composite materials that make most of the recently released Boeing 787 Dreamliner certainly qualify as an important innovation, but, despite all these improvements, which I, as an aviation enthusiast, appreciate, might be far from evident to the average airline passenger and, to the non-expert eye, a Boeing 787 looks unremarkably similar to a 1970s airliner.

A number of revolutionary concepts have been put forward in the last few years but the chances of them becoming a relity in the foreseeable future are, a priory, very slim. And it is understandable why: developing a new generation of airliners is such a complex, risky and capital-intensive task (we have got a taste of what this means with the A380 and Boeing 787 production delays) that it is no wonder that Boeing and Airbus prefer to squeeze further all improvements they can from their existing aircraft portfolio, and this is why we have the Airbus 320 Neo and the Boeing 737 Max, which I am sure are superb airplanes, but delivering just marginal improvements over the current family of aircraft.

Plus, why would you create an entirely new aircraft that renders most of your client's fleets obsolete in one go when you have a comfortable hold of this market? remember what happen when the Royal Navy introduced the first Dreadnought? Almost all its fleet became obsolete overnight and startup navies (Germany) spotted the chance to catch up fast.

Well, they risk being disrupted, such as Nokia got disrupted by Apple. and any such breakthrough is likely to come from outsiders...Will it be mass-market hypersonic flight? or the flying car?

Source: Wikipedia

Who knows?...by definition, breakthroughs are impossible to predict...

What do you think? Where is aviation's next big leap going to come from?

The long-awaited European long-haul low cost revolution

2012-01-06T02:13:00.000-08:00

Are low cost long-haul airlines finally coming to Europe (to stay)?

Well, to be fair, long-haul low cost airlines have operated in Europe before, but for a number of reasons they have never been able to consolidate.

From the early days of pioneering Laker Airways, back in the seventies, to the more recent Oasis Hong Kong (not to be mistaken for Oasis Airlines, a Spanish charter airline that ceased operations in the mid-nineties!), that flew Boeing 747s between London and Hong Kong, and Air Madrid, that collapsed in the run up to a Christmas holiday leaving thousands of passengers stranded, all attempts to establish the low cost long haul model in Europe have been met by failure so far...No wonder that with this track record Ryanair's rumored long haul expansion, expected to start with flights to New York Islip, hasn't materialized yet! And it is not only Europe, we find a similar situation in the US (I do not count transcontinential routes as long-haul).

The economics of long haul low cost aviation are certainly more challenging than those of the short haul variant: aircraft can not do multiple rotations, there are few long haul markets whose traffic is dense enough to support point-to-point operations without the support of a feeder, it is more difficult to take part of the market from alternative modes of transportation such as road or train (basically most of those that can or would fly are already doing so) and also most routes outside Europe are governed by a strict framework of bilateral agreements that provide little flexibility to new entrants.

However, there is a region og the World where long haul low cost carriers are not only well consolidated but also expanding fast. Air Asia X and Jetstar, that from their respective bases in Malaysia and Australia are currently competing to establish subsidiaries across the region. Singapore Airlines is also launching its own low cost airline, Scoot. And Australia's Strategic Airlines has also joined the fray after rebranding itself as Air Australia.

But in such a global industry, it is rare to see a trend confined to a single region and I think we are going to see long haul low cost airlines take hold in Europe really soon, with airlines from the Asia-Pacific region leading the way: Air Asia X is already at London Stansted and some more routes are being planned. Jetstar has also announced plans to enter the European market.

Norwegian plans to go long-haul as soon as it gets its new Boeing 787s

And we are starting to see some movement among European airlines too, with Norwegian leading the way, and XL Airways in France are also pondering whether to make the move (Air Berlin is also offering long haul but I would count them more as a hybrid airline rather than low cost). Delays in the production of the Boeing 787 might be delaying some long haul plans (its, in theory, superior economics might help overcome some of the obstacles mentioned above), but looks like the long haul low cost carrier is coming soon to an airport near you!

Interesting marketing approach for executive aviation

2012-01-05T07:58:00.000-08:00

I know executive aviation is not my usual blogging topic, but when I come across something in the aviation industry that I find interesting from a marketing or business point of view I like to share it here...and this is what happened when I came across Blink, a small British executive jet operator with bases at London Blackbushe (BBS), Surrey, Geneva and the Channel Islands.

Something caught my eye in their website: the user interface looks incredibly similar to that you can find in a regular "mass-market" commercial airline and so is the feel you get when checking routes and prices...even the "last minute deals" section...executive aviation is not my field, so this might not be unusual, after all, and maybe there are some other operators providing a similar booking process and taking the same marketing approach.

I do not think I am flying with them anytime soon, but I found it interesting to see some marketing innovation in the aviation executive segment!

Meet Volotea: Spain's new airline

2011-12-23T01:05:00.000-08:00

After months of rumors, we finally have a public announcement: Spain's new startup airline is called Volotea.

You have to be brave to start a new airline in Spain in the current economic climate, but its founders have done it before and their ability to pull an airline off the ground is beyond any doubt: Carlos Muñoz and Lázaro Ros were the founders of Vueling (now under Iberia's wings) whereas Román Pané used to be a manging director at Futura (a now-defunct Spanish charter carrier). They are backed by CCMP Capital (investor also in JetBlue).

There is not much information about the scope of the project and its planned roll-out, but all points towards the new Barcelona-based airline operating a regional network in Spain, along the lines of UK's Flybe or Finland's Blue1. This market niche, relatively shielded from the two LCC giants, has seen significant corporate activity recently, with Flybe's leading the way.

Volotea will be competing with Air Nostrum (that operates regional flights on behalf of Iberia) and with Spain's still growing high speed rail network.

If you wish to see what Volotea's livery will look like there are some pictures on airliners.net (renewed chances for all those, like me, still waiting to fly for the first time on a Boeing 717!)

And of course, there is a Twitter account too, although it does not seem to have any public activity yet...

Are European airlines becoming like football clubs?

2011-12-22T10:51:00.000-08:00

This week we have got confirmation of the acquisition of a significant equity stake in Air Berlin by Eithad. The Abu Dhabi carrier will increase its stake to over 29% from the 2.99% it already owned, this will make it the first shareholder in Germany's second largest carrier.

What's interesting in this deal, though, it's not only that this is the first major foray by one of the emerging Gulf carriers in the European airline industry, although maybe not the last if we listen to the rumors coming out of Ireland, but the fact that this investment will have consequences that go beyond the financial sphere. And this raises important questions regarding the industry's competitive landscape.

As this CAPA thorough analysis underlines, Air Berlin and Etihad are going to be, from now on, close partners: financially, as Etihad is injecting €255M in Air Berlin to help finance its fleet renewal and expansion, and also operationally, as Etihad and the airlines in Air Berlin group (including Austria's Niki and Switzerlands Belair) are going to codeshare routes across their networks. Air Berlin has already announced that is moving its Dubai service to Abu Dhabi to take advantage of the enhanced connectivity that its new partner provides. We can expect Etihad to benefit as well from Air Berlin's European network at the other end of the route.

Austria's Niki and Switzerland's Belair are also going to join forces with Eithad,a s they are part of the Air Berlin group

What this means, in effect, is that Lufthansa's long haul operation is going to be facing a larger passenger drain towards the emerging Gulf hub. Plus Air Berlin-Etihad have also the opportunity to develop an alternative German hub at Berlin's new airport, possibly not a coincidence that, in what looks like a preventive move, Lufthansa has recently announced plans to create a base in the German capital, an airport where it had had a very limited presence so far. It remains unclear whether this situation is going to affect Air Berlin's recent membership of Oneworld.

And it is precisely Oneworld who could be facing a similar situation in one of its home markets if Qatar Airways acquisition of Spanair is finally confirmed. As I write these lines the outcome of this negotiation is uncertain, although a deal must be closed soon as Spanair seems to be running out of cash. As I mentioned a few days ago, Qatar Airways would have its European beachhead, and, as in Berlin's case, it would be able to use a large brand-new airport with plenty of spare capacity to expand its European feeder operation.

Most important, and hence the title of this post, getting new entrants with access to a seemingly unlimited amounts of capital could significantly alter the competitive landscape (or distort it, depending on how you look at it)...which makes me think doesn't all this seem resemble what has happened with that other glamorous but chronically loss-making European industry:...football?

Iberia wants you to Fly Around the World with its new Facebook game

2011-11-16T07:51:00.001-08:00

Gamification is the word of the moment in social media and airlines are starting to experiment with it. Spanish flag-carrier Iberia, now part of the IAG Group, is the latest airline to experiment with this channel in order to generate buzz and follower engagement.

Iberia has just launched "Flying Around the World", a Facebook game here users can accumulate "hours of flight" by answering questions related to the airline and its products and services, the goal is to accumulate these hours of flight, you start as a co-pilot on short haul flights and become "Long-haul Pilot" (Comandante de largo radio), you can answer up to five questions per day and each correct answer gives you "flying hours".

Each question is labeled as a "flight", for example to complete a Madrid-Milan flight I had to answer how Iberia's last minute discounted online booking service is called (answer "Los que Corren, Vuelan" ("those that run, get to fly"). Iberia will be progressively adding new flight sectors over time,as the goal is to keep users engaged. As any good social media "trap", you get extra points for liking Iberia's Facebook page and leaving them your email (not that they hadn't it already!).

The more "zones (Europe, Latin America, etc.) you complete, the more chances you have to win in the draw that takes place at the end of the contest (15th December). Iberia will throw in "special" sectors to cover from time to time, as a chance to accumulate more "flight hours".

The prize? You guessed it!
4 free flights for the select few to any of the 24 long-haul destinations on Iberia's network (or "Avios" Iberia's, and IAG's, frequent flier "currency")

I was playing around with it a little bit, an, although the mechanics of the game are not particularly revolutionary, it is a nicely executed project that makes for some good light entertainment while you recall the extent of Iberia's network...I'll let you know in case I win!

To Fly to Serve: British Airways' great retro commercial

2011-11-16T06:52:00.001-08:00

Those of you that live in the UK and have been to cinema recently would have probably watched it, as it has been on the air for a few weeks already...I finally had the chance to watch BA's commercial "To Fly to Serve" a few days ago and quite liked it, so I thought about sharing it here for all readers to enjoy!

By the way, I am not sure what the first two aircraft shown in the video are...any clues? (the second one looks like a Dragon Rapide, but not sure)

Routes Exchange: an innovative approach to route planning for airlines and airports

2011-11-12T15:15:00.001-08:00

Route planning is one of the aspects of the airline business that I am more passionate about.

In the competitive globalized World we live in it is not only airports but whole communities that are affected by route planning decisions. Network quality is vital not only to airports but it can also have a dramatic effect on the overall competitiveness of the region they serve.

Just think what was the typical centralized route network in every European country twenty years ago (I still keep some flag carrier's in-flight magazines from those days!), you would have one or (eventually) two hubs per country with flights to regional airports and a handful of other major capitals, most secondary airports had to live off charter flights and the regular links to the country's hub...but then came Ryanair, Easyjet and all the other LCCs and proved that many more combinations were possible, that if you had the right business model you could make thinner routes work too and the overall air travel cake got bigger.

But the route frenzy is not over, just as we see the low cost model consolidating in virtually every major air market (except Russia), I would expect another wave of route development driven by the long-haul this time: better aircraft economics (think Boeing 787) will unlock potential on many thin routes, the emerging mega-carriers like Emirates and Qatar Airways will continue to build up their presence in Europe, China and the US, increasingly covering second tier cities (something they already do in India) plus the long-haul low cost model that is already succeding in the Asia-Pacific region is coming to Europe soon.

There is a world of possibilities out there, but...how to make sense of all the different options?

Here is when "Route Exchange" comes into play...

I found the concept really innovative, "Route Exchange" is an online platform, managed by Routes Online, that airlines and airports can use to evaluate potential new routes. It is a tool that helps both sides (airlines and airports) identify market opportunities and facilitates the information flow between them.

There is also the possibility of proactively seeking new routes opportunities, this is for example what AirAsiaX did this summer, sending a Request for Proposals (RFP) for its upcoming European expansion. All European airports were invited to submit their RFPs to the innovative Malaysian airline...but this particular contest is going to be the topic of a separate upcoming post...

Do airports need to advertise to the general public?

2011-11-05T04:42:00.000-07:00

I was taking a ride on the London underground (aka "the Tube") the other day and an advertisement on the top of the wagon, just above my head, caught my eye...It was a London Heathrow airport ad (see picture) highlighting the airport's role in the UK economy by connecting the country to the World's fastest growing economies...all fine, no doubt about it, but...does the average commuter really care? will you choose to fly from LHR next time because of this? ok, I know, it's a public relations stunt...but, again:

if you are an airport, is an ad on the tube the best way to deliver the message?

Qatar Airways about to invest in Spanair and why this is good news for Barcelona airport (and II)

2011-10-31T12:46:00.000-07:00

As a continuation of my previous post on Qatar Airways possible acquisition of a stake in Spanair, here are some interesting questions that come to my mind when thinking about the possible consequences of this deal:

1) What is going to happen with Spanair's current Star Alliance membership and how is this going to affect the agreements Spanair had with Star partners on several routes, some of were of strategic importance to the carrier, such as Singapore-Barcelona-Sao Paulo.

2) What designs has Qatar Airways for the new Spanair and what degree of control would be able to exert? Is this a purely financial operation, with Qatar Airways limiting itself to turn the company around and making it a stronger stand-alone carrier? Or are we witnessing the first act of a much more ambitious project aimed at building a presence in Europe (possibly by acquiring other troubled European airlines). If the latter turns out to be the case, it would be interesting to know what is Qatar Airways plan: a feeder operation involving a transit through Barcelona from Southern Europe regional airports and onto the Gulf does not seem to fit into the global-connector strategy Qatar Airways is developing through its Doha hub. Or maybe using Spanair to code-share on flights beyond Europe, as Singapore Airlines is already doing with Spanair? or build a base in Barcelona to fly from there to destinations in America, along the lines of what Indian carrier Jet Airways tried to do in Brussels?

In any case, Qatar Airways is gaining access to a large and recently renovated airport, with plenty of spare capacity and a geographical position that makes it a suitable gateway to Europe and beyond when flying from the Gulf.

3) Another interesting question that comes up these days is: will Spanair keep its name? rumours are its name is going to be changed to Air Barcelona or Barcelona Airlines. I am, personally, not a big fan of airlines named after cities, but this change would possibly make sense, since the Spanair brand does not enjoy a particularly strong recognition, whereas "Barcelona" is certainly a powerful brand (coincidentally or not, the Emirate of Qatar is also sponsoring FC Barcelona and another of the World's emerging airlines kicked off its European brand building campaign by associating itself with Barcelona's name)

In any case, I will be posting more analysis as soon as more news will come out soon, as Spanair's current situation is hardly sustainable...watch this space!

Qatar Airways about to invest in Spanair and why this is good news for Barcelona airport (I)

2011-10-30T15:51:00.001-07:00

I just learned that Qatar Airways might be about to acquire a 49% stake in Barcelona-based troubled airline Spanair. While I do not know the details of the deal, I can think of a few reasons why this could be a good move for all parties involved, as well as for Barcelona's airport.

First of all, is a matter of financial necessity and of urgency. Spanair is in a critical financial situation and, despite strong backing from the Catalan government, is quickly running out of cash. Since I wrote this note a few months back it seems Spanair's cash-flow position has only got worse.

An investor with deep pockets is needed in order to keep the airline flying and allow the Catalan government to save face and disentagle itself from an operation that is difficult to justify at a time of tough budget cuts, while claiming a partial success at keeping Barcelona's long-haul hub aspirations alive.

And this takes us to the next factor that I think it makes a tie-up with Qatar Airways a potentially interesting proposition and this is none other than opening a window to the East and to the globe's currently most dynamic economies. On June 2010 I commented on this blog how commercial aviation's center of gravity is moving East and any carrier and airport with aspirations should try to ride this trend. A link with Qatar would certainly help Spanair and Barcelona airport gain this intercontinental dimension they have been so much longing for.

A side effect of a re-capitalized Spanair is that it will put pressure on Vueling, Barcelona's other airline, that is already being squeezed by Ryanair's increasing presence at BCN. Having to face renewed competition from a stronger Spanair will certainly not help recover its margins. It will also prevent Vueling from becoming the only carrier able to build some sort of air hub at Barcelona. Although Vueling has been developing some flight connectivity at BCN there are serious doubts about Vueling's capacity to build a fully fledged hub at the shadow of Iberia, that remains its main shareholder, since any such move would risk cannibalizing Iberia's operations in its main Madrid hub.

In my next post I am going to present some interesting strategic questions that arise from the possible imminent completion of this deal...

Airbus and Rolls Royce in pole position to equip Russia's major airlines

2011-08-23T11:44:00.000-07:00

It looks like the Airbus A380 had quite a successful first appearance at MAKS, the Moscow Aviation Show, that took place last week. Russia is one of the aviation markets where interesting things are currently happening, not least because of the resurgence of the domestic aircraft industry, lead by its star, the Sukhoi Superjet.

But there are no plans for a competitive very large commercial airplane to be produced in Russia in the foreseeable future at a time when Russians are increasingly traveling abroad, no wonder airlines are looking to upgrade their long-haul, wide-body fleets (it also helps that taxes on >300 seats imported aircraft have been recently abolished).

Whereas Boeing was the manufacturer of choice when Russian carriers first renewed their fleets in the post-Soviet era, Airbus is making important advances into the Russian market. First it was Aeroflot ordering A330s and A350s, now we hear that the Russian flag carrier might be interested in acquiring up to 5 A380s. This would be great news for Airbus, but also for Rolls-Royce, the possible engine supplier of choice with its Trent-900, the engine that powers the majority of A380s flying today (Rolls-Royce Trent-700 was already selected to power Aeroflot's new A330s), not because of the size of the order "per se", but because of what it represents in terms of visibility and its consolidation in the Russian market.

Transaero is another airline said to be interested in the A380. Russia's second largest airline is adding long-haul capacity at a frantic pace, it is adding Boeing 747-400s with high-density configurations (ex-Japan Airlines aircraft fitted with up to 525 seats) as well as former Singapore Airlines Boeing 777s (by the way, also equipped with Rolls-Royce Trent engines). If it is able to fill all these Jumbos, why not go for the A380, then?

More airline archaeology

2011-06-30T09:19:00.000-07:00

When I was doing some research on communist-era airlines for my previous post on my visit to Belgrade's aviation museum, I came across this interesting photo on Flickr of a Tupolev TU-134 that belonged to East German flag carrier Interflug.

This photo stream is worth a look if you are an #avgeeks with a passion for history!

Revisiting the history of European aviation in Belgrade

2011-06-29T07:38:00.000-07:00

I was being driven to Belgrade's Nicola Tesla international airport to take my flight back home after a couple of fruitful days in Serbia's capital when something caught my eye...right to the side of the main airport terminal there was what looked like a spectacular display of old aircraft types.

Fortunately enough the field in question was within walking distance of the terminal and I had plenty of time before the departure of my flight, so, trolley in hand, I walked towards this open-air museum to have a closer look...the 7min. walk was well worth it!

The place itself has a somewhat derelict look, like a legacy from a bygone era, when other architectural styles were in fashion (somehow the main building reminded me of the Atomium, in Brussels!), but this is possibly the best setting for one of the most amazing displays of communist-era aircraft that I have ever seen.

I am not an expert in military aviation but I think most of the airplanes are old Yugoslav-made Galebs (that curiously enough, happen to be in the news these days because of the conflict in Libya!). However, what I found to be the star of the exhibit, and certainly of much interest to someone like me interested in the history of commercial aviation, is this JAT-Yugoslav Airways Caravelle, an icon of European commercial aviation history.

The SUD-Caravelle was one of the first jet-powered commercial airliners and a big commercial success in its day. This French-made aircraft came to dominate European short and medium haul routes in the pre-Airbus era. It carried around 80 passengers, although the latest version, developed in the early 70s and called Super-Caravelle, could carry up to 140 passengers. I ignore whether there is any Caravelle left flying in some remote corner of the planet, but, in any case, Belgrade's open-air aviation museum is a great opportunity to come face to face with this mythical aircraft!

As per JAT Airways, what used to be the flag carrier of the former Yugoslavia has reinvented itself as the flag carrier of Serbia and it operates under a new logo and a renovated image and fleet. It flies to some 35 scheduled destinations with a fleet of Boeing 737s and ATR-42s.

Amazing video taken from a Vueling airliner while intercepted by a French Mirage fighter jet

2011-06-04T03:12:00.000-07:00

Ever since the terrible events of 9/11 in the US, commercial airlines that can not be properly identified or that report some sort of incident are regularly intercepted and escorted by fighter jets...How does it feel to see fighter jets approaching while you look through the window in mid-flight? Thanks to this extraordinary video that is making the rounds on social media channels we can see how it looks like!

Vueling flight VY8366 was flying from Málaga (AGP) to Amsterdam (AMS), when it was intercepted by a French Air Force Mirage 2000 fighter jet on May 27th at around 21.30 CET.

According to Dutch blogger FMCNL (that became famous in aviation blogger circles because of its excellent and timely coverage of NATO's Libyan campaign), the intercept took place just South-West of Paris and was what it's called a "QRA Tango" or Quick Reaction Alert Training.

You can watch it here. It is really spectacular!

Unusual planespotting opportunities

2011-05-14T00:07:00.000-07:00

I am by no means an expert planespotter, but when I come across some interesting sights at Europe's airports, I like to share them here. On this occasion the pictures are of two airlines that operate very limited schedules to European airports, so it is not too easy to spot them!

An Uzbekistan Airways A310 taxiing at Madrid-Barajas (MAD) before taking off for Tashkent

An Aeromexico Boeing 767 at Barcelona-El Prat (BCN)

The frustrated merger Olympic-Aegean and the competitive situation in the Greek air travel market

2011-05-06T01:59:00.000-07:00

The Olympic-Aegean merger, unlikely to happen anytime soon

The Greek aviation industry has been flying through turbulent times in recent years and one of the consequences has been the proposed merger between the country's two main airlines: Olympic Airlines and Aegean Airlines.

But it looks like industry consolidation will have to wait, since this merger has recently been blocked by the European Union on the basis that such a merger would bring about a virtual monopoly on Greece's domestic air routes. The people at Anna Aero have been doing some research on the competitive environment in the Greek aviation market. In a couple of articles (beware if you click on the links from work, as they contain some animations and sounds!) they have assessed what the market share of the merged airline would be, it would account for nearly 95% of the Greek domestic routes, but the situation would be significantly different on European routes, were it would be competing with foreign airlines in practically all city pairs.

They have also looked at what is the market concentration at other European markets. Greece would be at the top of the table after the merger, but France is, already now, not far behind. Although it is also true that overland communications might be easier in France, that has a well developed high-speed rail network and that Greece's many islands lack a fast transportation alternative.

The Greek aviation sector has been transformed and has got a face-lift recently but the islands remain dependent on the same old links to the mainland

When reading these articles other considerations come to my mind, maybe material for further analysis, for example, when considering the long-haul market. There is currently no Greek airline flying long-haul (these were large loss-makers for the old Olympic) and there aren't many international airlines flying long-haul into Athens either, so the offer is quite limited. A merged Greek airline would possibly have a better chance to do them, increasing capacity on this market segment.

Another point to consider is whether the resulting airline would join Star Alliance, of which Aegean is already a member, or Sky Team, as Olympic was on track to do. So how the competitive analysis in European routes would vary once taking into account code-sharing agreements and the alliance's partners routes?

In any case, the latest news is the an appeal has been filed regarding the blocking of the merger, so this story might go on for still quite a while...

Spectacular photo of Moscow at night taken from an airliner

2011-05-05T09:45:00.000-07:00

I recently came across a site with amazing photos, all of which had in common that had been taken from aircraft in flight.

I then went to my archive and posted on Twitter what is possibly the best picture I have ever taken from an airplane. I took last winter from a Brussels Airlines A319 on a flight from Moscow to Brussels and it enjoyed an immediate success upon posting it, so I decided to post it on this blog too...I hope you like it!

Why I like Amsterdam Schiphol airport so much?

2011-05-04T00:40:00.000-07:00

I have been fortunate enough to live in The Netherlands for over a year at one point in my life and I know Amsterdam Schiphol (AMS) very well...I recently had the chance to visit it again after a long absence...and I still think is one of the best airports in the World, and possibly the best in Europe for plane spotters!

Is not only modern, clean, convenient and perfectly connected with regular and frequent ground transportation (it sits on a main railway trunk line), it's got great shopping, restaurants, even an art museum!...it is the small details that end up delighting the aviation enthusiast and planespotter! Here is a sample:

Aviation shop: all sort of memorabilia, aircraft models and other aviation-related stuff can be bought here. the shop is conveniently shaped as a KLM aircraft!

While walking along Schiphol's corridors you will find these indicators whose aim is to help the public recognise the different types of airplanes that are visible across the glass

Panoramic Terrace, although this photo contains only KLM aircraft, a very diverse mix of airlines from all over the World fly to AMS, which makes for a very interesting plane spotting opportunity!

The panoramic terrace is great for plane spotting!