American’s Destiny: Will the new American be the next Delta? Or the next United?

American’s Destiny: Will the new American be the next Delta? Or the next United?

The $2.9b net profit Delta earned in the 12 months to March 2014 is extraordinary; It’s more than a billion dollars better than any other airline has ever earned in a year. Even controlling for airline size to compare smaller airlines that can’t possibly earn that much money, Delta’s 10% operating margin for the period […]

Flight of the Living Dead: Zombie airlines are haunting Europe’s excessively fragmented airline sector

Flight of the Living Dead: Zombie airlines are haunting Europe’s excessively fragmented airline sector

Forget the strike-prone labor unions, the government austerity, the economic doldrums, the high taxation, the overregulation, the expensive airports, the opposition to airport expansion, the wasteful Eurocontrol regime, the heavy seasonal swings, the night curfews, the capacity growth and the Gulf carrier incursions. Yes, all of these hurt. But ask European airline executives what they […]

C is for Trouble: New airlines, new planes and new capacity promise more yield pressure in China

C is for Trouble: New airlines, new planes and new capacity promise more yield pressure in China

For a time, U.S. airlines—enjoying the fruits of consolidation, capacity cutting and charging for everything—weren’t alone. From 2010 through 2012, Chinese airlines experienced their own set of C-lettered tailwinds. Their market likewise consolidated, with China Eastern buying Shanghai Airlines and Air China buying Shenzhen Airlines. Collusion on pricing and scheduling, hard to prove but widely […]

The Full Minty: JetBlue goes all-out in the transcon war, a war with many LCC victims

JetBlue goes all-out

On June 15, JetBlue will start its boldest effort yet to succeed in the transcontinental market—or more specifically, the bountiful market between New York and California’s two biggest cities, Los Angeles and San Francisco. The airline’s new Mint product, designed just for these two routes, will go further than any LCC has gone before in […]

Looks Like a Lion, Smells Like a Skunk: Air France/KLM remains powerful in many ways. So why is it losing so much money?

Looks Like a Lion, Smells Like a Skunk: Air France/KLM remains powerful in many ways. So why is it losing so much money?

Think Air France/KLM, and what comes to mind? An airline that prospered during the tumultuous first decade of the 2000s? A globally diversified network second to none? An iconic brand, well regarded services, two powerful hubs, a lucrative maintenance business, a cutting-edge partnership with Delta, a privileged position in Africa, excellent coverage of China, 22m […]